Page 14 - The South China Business Journal

E VENT

? 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 through comprehensive quantitative
over the next three to five years. statistics and insightful graphs.

¡°The message from American businesses ? In 2025, 45% of the companies studied
is clear: they are committed to long-term reported either a significant or slight
participation in China¡¯s growth.¡± Dr. Seyedin increase in revenue in China, reflecting
continued, ¡°Companies are reinvesting not
only to expand market share, but to innovate, a 2pp decline from the previous year.
Meanwhile, the proportion of companies
localize, and strengthen their integration indicating unchanged revenue rose by 4pp
within the Chinese economy. This sustained to 21%.
reinvestment reflects confidence in the
market¡¯s resilience and its central role in global
business operations.¡± ? Among companies reporting profitability
in China, 37% indicated that their
financial performance aligned with
03 | Improving Sentiment on US-China budget projections, while an additional
Relations 6% significantly exceeded expectations.
For companies not yet profitable in
Business sentiment regarding the future of China, 78% expect to achieve profitability
US-China relations has improved significantly. within two to five years. Meanwhile, the
The Report shows that 39% of all studied proportion anticipating a longer path
companies now express a positive outlook?a to profitability?exceeding six years?
substantial 14pp increase from 2024. While increased by 8pp to 16%.
many companies still anticipate the possibility
of continued trade tensions in 2026, there is
a growing expectation that the operational ? 74% of the companies studied
characterized their overall return on
disruptions will be shorter in duration and investment (ROI) in China as positive or
more manageable.
very positive. 42% assessed their overall
ROI in China as superior to their global ROI,
Dr. Seyedin noted: ¡°The US and Chinese
economies are deeply interconnected. While representing a 3pp increase year-on-year.
differences remain, our commercial ties are
substantial and mutually beneficial. Continued ? A stable majority of companies (59%)
dialogue, transparency, and engagement plan to expand their operational footprint
between the two countries will foster greater within China over the next
understanding?creating a more stable three years.
environment for trade, investment, and long-
term economic cooperation.¡± ? For the ninth consecutive
year, Guangzhou has
04 | Key Takeaways of the 2026 Special been ranked the top
investment destination in
Report on the State of Business in China, selected by 38% of
South China respondents. Following
closely is Shenzhen,
During the press conference, Dr. Harley which saw a notable gain
Seyedin, President of AmCham South China, of 6pp to reach 29%,
presented the findings of the Special Report ahead of Shanghai (10%)
and Beijing (5%).

11 AMCHAM SOUTH CHINA