Only 47 of US firms optimistic on 5year outlook
US firms profitable in China down to 66 in 2023
Geopolitical tension rated as biggest challenge

SHANGHAI, Sept 12 Reuters Political tensions, China39;s slowing economic growth and fierce domestic competition are sapping the confidence of U.S. businesses in the country, with optimism about their fiveyear outlook falling to a record low, a survey showed.

Only 47 of U.S. firms were optimistic about their fiveyear China business outlook, a drop of five percentage points from last year, according to the survey published on Thursday by the American Chamber of Commerce in Shanghai. This was the weakest level of optimism reported since the AmCham Shanghai Annual China Business Report was introduced in 1999. Also at record lows were the number of firms profitable in 2023, at 66.

AmCham Shanghai Chairman Allan Gabor said the trend in falling profitability was due to a combination of factors.

It39;s domestic demand, it39;s deflation, and of course we cant ignore the membership39;s perceptions and concerns about geopolitics, Gabor said.

This touches investments and touches operating plans in China in terms of how we develop business plans in China for the future.

The 306 U.S. firms polled were from a range of industries. U.S. foreign direct investment into China fell 14 to 163 billion in 2023 from the previous year, according to the U.S. State Department.

Geopolitics remains the number one challenge for most American…