Press
Release
For Immediate Release
March 10, 2026
For additional information, please contact:
Ms. Charlene Chen
Deputy Director of Events, Media and Communications
The American Chamber of Commerce in South China
Tel: 86-20-8335-1476 ext. 33
E-mail: cchen@amcham-southchina.org
Guangzhou is Ranked the Top Investment Destination in China, Followed by Shenzhen, Shanghai and Beijing -AmCham South China Reports
GUANGZHOU, CHINA – March 10, 2026 – The American Chamber of Commerce in South China today released its 2026 Special Report on the State of Business in South China. The release was attended by over 200 government officials, business executives and members of media including over 40 foreign consulates mostly represented by their consuls general. This publication can be downloaded free of charge from the Chamber's website at http://www.amcham-southchina.com/amcham/static/publications/specialreport.jsp
The 206-page bilingual 2026 Special Report on the State of the Business in South China, the 22nd such endeavor, provides a comprehensive and quantitative analysis of the business community and valuable insights into the development trends in South China. This year, a total of 426 companies participated in the study. This publication is researched and produced independently by the American Chamber of Commerce in South China and does not represent the opinions of the US or any other government or organization. The Chamber does not receive any funds from any government in the production of this publication.
China's Strategic Allure Intensifies
Despite ongoing trade tensions, China's position as a leading global investment destination continues to strengthen. 45% of the companies studied ranked China as their top global investment priority, representing a notable 6pp increase from 2024. Revenue data further underscores this strategic emphasis: 37% of companies generated more than 60% of their global revenue from China, a 6pp increase.
Dr. Harley Seyedin, Chairman and President of AmCham South China, winner of 2017 Oslo Business for Peace Award (along with Elon Musk, Durreen Shahnaz and Murad Al-Katib), which is bestowed by an Award Committee consisting of Nobel Laureates in Peace and Economics, said, “Although profitability has moderated slightly in the near term, the broader data reflects remarkable strategic resilience. Companies are deepening—not retreating from—their engagement in China, recognizing the scale of its market, the sophistication of its innovation ecosystem, and its long-term growth trajectory.”
Sustained and Deepening Market Commitment
The 2026 Special Report highlights exceptional levels of commitment to the Chinese market:
- 95% of participating companies reaffirm their commitment to maintaining operations in China.
- Not a single company reported a complete withdrawal from the market.
- Among the 28% that relocated a portion of their investments, 79% shifted less than 30% of their investment outside China.
Looking ahead, 75% of the companies studied plan to reinvest in China in 2026. Collectively, member companies have earmarked an estimated US$13.79 billion from profits in China for reinvestment over the next three to five years.
“The message from American businesses is clear: they are committed to long-term participation in China's growth.” Dr. Seyedin continued, “Companies are reinvesting not only to expand market share, but to innovate, localize, and strengthen their integration within the Chinese economy. This sustained reinvestment reflects confidence in the market's resilience and its central role in global business operations.”
Improving Sentiment on US-China Relations
Business sentiment regarding the future of US-China relations has improved significantly. The Report shows that 39% of all studied companies now express a positive outlook—a substantial 14pp increase from 2024. While many companies still anticipate the possibility of continued trade tensions in 2026, there is a growing expectation that the operational disruptions will be shorter in duration and more manageable.
Dr. Seyedin noted: “The US and Chinese economies are deeply interconnected. While differences remain, our commercial ties are substantial and mutually beneficial. Continued dialogue, transparency, and engagement between the two countries will foster greater understanding—creating a more stable environment for trade, investment, and long-term economic cooperation.”
Key Takeaways of the 2026 Special Report on the State of Business in South China:
- In 2025, 45% of the companies studied reported either a significant or slight increase in revenue in China, reflecting a 2pp decline from the previous year. Meanwhile, the proportion of companies indicating unchanged revenue rose by 4pp to 21%.
- The overall financial performance of the companies studied in China continued to soften in 2025, with 82% reporting profitability, representing a 3pp drop year-on-year.
- Among companies reporting profitability in China, 37% indicated that their financial performance aligned with budget projections, while an additional 6% significantly exceeded expectations. For companies not yet profitable in China, 78% expect to achieve profitability within two to five years. Meanwhile, the proportion anticipating a longer path to profitability—exceeding six years—increased by 8pp to 16%.
- 74% of the companies studied characterized their overall return on investment (ROI) in China as positive or very positive. 42% assessed their overall ROI in China as superior to their global ROI, representing a 3pp increase year-on-year.
- The proportion of companies expressing optimism regarding their business prospects in China increased by 4pp year-on-year to 61%.
- In 2025, 63% of the companies studied reported reinvesting operations in China, representing a modest increase of 2pp year-on-year.
- In 2025, capital deployment for reinvestment remained concentrated at more modest scales, with a majority of companies (76%) directing under US$10 million into their China operations. This closely aligned with the proportion of firms (77%) that had originally budgeted within this range.
- The overwhelming majority of companies have budgeted less than US$10 million for re-investment in China in 2026, representing 79% of firms—a 2pp increase year-on-year. Meanwhile, the proportion allocating a mid-range budget of US$50 million to US$250 million for the coming year grew by 3pp to 5%. Notably, the share of companies planning large-scale reinvestments exceeding US$250 million contracted by 2pp, declining to just 4%.
- A stable majority of companies (59%) plan to expand their operational footprint within China over the next three years.
- For the ninth consecutive year, Guangzhou has been ranked the top investment destination in China, selected by 38% of respondents. Following closely is Shenzhen, which saw a notable gain of 6pp to reach 29%, ahead of Shanghai (10%) and Beijing (5%).
- The adverse effects of both US and Chinese tariffs have intensified markedly in 2025, affecting a record proportion of companies since tracking began in 2018. American companies, in particular, continued to bear the heaviest burden.
Special Report on the State of Business in South China
The Special Report on the State of Business in South China is a quantitative study of the business environment, conducted for consecutive years by the American Chamber of Commerce in South China. Each year, the Chamber's member and non-member companies participate in its State of Business study, results of which will be garnered and edited into a separate publication.
The document can be downloaded free of charge from the chamber's website at https://www.amcham-southchina.com/amcham/static/publications/specialreport.jsp
About the American
Chamber of Commerce in South China
The American Chamber of Commerce in South China (AmCham South China) is a non-partisan, non-profit organization dedicated to facilitating bilateral trade between the United States and the People's Republic of China. AmCham South China is one of only three officially recognized China-based members of the U.S. Chamber of Commerce in Washington, DC. Accredited in 1995 by the US Chamber of Commerce in Washington DC, AmCham South China represents more than 2,300 corporate and individual members, is governed by a fully-independent Board of Governors elected from its membership, and provides dynamic, on-the-ground support for American and international companies doing business in South China. Over the past decade, AmCham South China has hosted on average each year more than 10,000 business executives and government leaders from around the world at its briefings, seminars, committee meetings and social gatherings. All AmChams in China are independently governed and represent member companies in their respective regions.
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