Sharp rebound in US firms' business confidence in China, report shows

Business confidence among US companies in China rebounded sharply amid stronger financial performance, a more stable geopolitical landscape and perceived regulatory progress, according to AmCham Shanghai's 2026 China Business Report, released on September 10.

Of the 262 member companies surveyed, 78% said their China businesses were profitable in 2025, while 58% were optimistic about their five-year outlook in China.

The rebound in business confidence was accompanied by stronger investment activity.

A total of 28% of respondents increased their investment in China in 2025, the highest share in four years.

Views of the business environment also improved, with 55% describing it as transparent, up seven percentage points from a year earlier.

Eric Zheng, president of AmCham Shanghai, emphasized the great importance of the Chinese market, mainly from two dimensions.

China remains one of the most efficient manufacturing bases in the world and continues to be a highly strategic market for members' products and services, Zheng said.

"That underpins the positive sentiment," he added.

Among members with US operations, three-quarters confirmed that their China presence benefits their US operations in some way, with one-third emphasizing that their China presence enhances the global competitiveness of their US operations.

A notable strategic shift is also emerging, with more surveyed companies adopting a global-oriented strategy.

The "in China for the world" strategy has become the top business priority for 29% of surveyed companies in 2026, surpassing the "in China for China" model chosen by 24%.

More respondents are also betting on China-based innovation, the report said.

Half of surveyed members with China-based research and development (R&D) facilities plan to increase R&D spending this year, up sharply from one-third in 2025.

In a vote of confidence in the Chinese market, General Motors (GM) in August announced a 20-year extension of its joint venture partnership with Chinese automaker SAIC Motor, with it now running to 2047.