Chinese Investors Remain Committed To US Market Despite Uncertainty

Despite the escalating anti-China rhetoric in the US over the last few months and the ongoing uncertainty about the relationship between the two countries, Chinese investors are committed to the US markets, according to the latest survey from the China General Chamber of Commerce - USA (CGCC). 　　

The CGCC and CGCC Foundation, in partnership with PwC, recently released its 2020 Annual Business Survey Report on Chinese Enterprises in the U.S. 　　

Conducted in February and March, the survey collected data from senior executives at more than 1,000 Chinese-invested companies in the US and included a total of 160 responses.　　

Over 50 percent of those surveyed said that they have been negatively affected by the escalating tensions between the two countries in recent months, with 36 percent citing rising tensions as the reason for their financial losses.　　

Also, 78 percent said they were adversely impacted by the sharp decline in trade relations between the US and China in 2019.　　

In addition, 42 percent of surveyed companies said that barriers on immigration have become one of the key areas challenging the future growth of their business. 　　

However, despite these complex issues and ongoing uncertainty, Chinese companies remain committed to the US market, with 60 percent of those surveyed saying their investments in America have remained the same. They are also optimistic about the market recovery in the US, with 55 percent expecting the economy to rebound from Covid-19 within the next year.

According to the survey, CGCC member companies have invested over US$123 billion in the US economy to build new factories and businesses, which employ an estimated 220,000 people. 　　

Nearly half of those surveyed reinvested most of their profits into the US, with 45 percent saying they intend to hire more staff over the next two years. Only 4 percent said they might cut jobs.　　

In terms of how the US government could improve the business environment, 76 percent responded that tariffs and other import and export restrictions should be reduced and trade barriers lowered, while 66 percent said stability of investment and trade policies should be strengthened. A total of 43 percent of respondents said that providing more convenient visa policies for executives would help. 　　

Founded in 2005, the CGCC is the largest non-profit organization representing Chinese enterprises in the US with more than 1,500 member companies. This year marks the CGCC's seventh annual survey report.