A new survey has found that U.S. companies operating in China are increasingly worried about the country’s weakening economy, ranking it above trade disputes as their biggest challenge. The findings, released Friday by the American Chamber of Commerce in China, underline how market conditions inside China are now shaping business confidence more than geopolitical tensions.
According to the report, nearly two-thirds of the 368 U.S. companies surveyed said slower economic growth in China is their top concern. By comparison, fewer—though still a majority—pointed to ongoing U.S.-China trade tensions as a major risk. The results reinforce the headline takeaway captured in Survey Finds Economic Slowdown Tops U.S. Businesses’ Concerns in China, Outweighing Trade Tensions.
Domestic Market Exposure Drives Concerns
One key reason for this shift is that many American firms in China are deeply tied to the local consumer market rather than export-driven supply chains. With China’s population of roughly 1.4 billion people, companies are more exposed to domestic demand trends, making slower growth a direct hit to revenues and expansion plans.
Economists expect China’s economy to cool further this year after growing at around 5% in 2025. While exports continued to outpace imports last year—pushing the country to a record trade surplus of nearly $1.2 trillion—internal demand has shown signs of strain, adding to uncertainty for foreign businesses.
Sentiment Improves Despite a Challenging Climate
Despite these headwinds, the survey suggests a modest rebound in business sentiment compared with last year. More than half of respondents said they were profitable in 2025, an improvement from the previous year when fewer than half reported profits.
U.S. firms have faced an uneven environment in recent years, particularly after President Donald Trump returned to office. While his earlier tariffs—some as high as 145% on Chinese imports—created volatility, a year-long trade truce between Washington and Beijing has helped ease immediate concerns.
Trump is expected to visit Beijing in April, and Chinese President Xi Jinping may travel to the United States later this year, raising hopes for continued dialogue between the two sides.
Investment Slows, but Opportunities Remain
Even so, foreign investment into China has cooled. Official data show foreign direct investment totaled 693 billion yuan (about $99 billion) in the first 11 months of 2025, down 7.5% from a year earlier.
“Our companies have to live with the political realities, but they’re focused on the business opportunities,” said Michael Hart, president of AmCham China, during a media briefing. He added that U.S. firms still sense a willingness from Chinese authorities to attract foreign capital.
That optimism is reflected in the survey results: 48% of respondents said they are confident about expanding their market presence in China over the next two years, up from 37% the previous year.
Policy Signals and Timing
Chinese leaders also acknowledged the need to improve systems that support foreign investment during a major economic policy meeting held in December. The AmCham survey was conducted between Oct. 22 and Nov. 20, a period that coincided with talks between Trump and Xi in South Korea, where both sides agreed to extend their trade truce.
