US businesses in China see their industries growing this year after the COVID-19 pandemic dented profits last year, with growing hopes the two nations would seek to mend ties, a survey by the American Chamber of Commerce in People’s Republic of China (AmCham China) showed.
A report released yesterday showed that 81 percent of 345 respondents expect industry growth this year and 45 percent see relations with the US improving, a jump of 15 percentage points from last year.
The surge in optimism on bilateral ties came on the back of US President Joe Biden being sworn in, AmCham China chairman Greg Gilligan said.
“We think the issues remain the same, but stylistically things should improve with more traditional measures of diplomacy, including multilateralism, and frankly, getting back to the table for the US and China to speak to each other,” Gilligan said in an interview with Bloomberg TV.
Gilligan called on both nations to use “as narrowly as is appropriate” the ideas of national security and law enforcement, to broaden commercial opportunities.
Half of the survey respondents said that the investment environment is improving and just 12 percent said it is deteriorating, the lowest proportion since the question was first introduced in 2012.
Only 56 percent made a profit, with one-fifth suffering a loss.
“With China leading in economic recovery and the new US administration in place, our members are cautiously optimistic regarding business growth in China,” Gilligan wrote in the report.
Global business travel disruptions, the inability for expatriate staff to return to China due to government entry restrictions and uncertainty around decisionmaking were the biggest ways in which the COVID-19 pandemic had impacted the operations of US companies in China.
Despite emerging optimism, bilateral tensions were still seen as the companies’ biggest business challenge, followed by increasing labor costs, competition from private local companies, inconsistent regulatory interpretation, and unclear laws and enforcement.
Ensuring a level playing field is the top measure Beijing could take to help foreign businesses, the survey showed, while Washington could help by refraining from aggressive rhetoric and retaliatory measures.
The survey was conducted between October and November last year.
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