Despite recent trade tensions, American companies are increasingly optimistic about their business prospects in China. That’s according to the 2026 Special Report on the State of Business in South China, released by the American Chamber of Commerce in South China (AmCham South China) on Tuesday.
The survey, which was reported by Info Guangdong, covered 426 companies and found that 61 percent of US firms feel optimistic about prospects in China, up 4 percentage points year-on-year despite tariffs impacting a record proportion of companies.
Firms also showed considerably more optimism regarding broader bilateral relations with 39 percent now expressing a positive outlook on future Sino-US relations, up 14 percentage points from 2024.
“The US and Chinese economies are deeply interconnected,” reflected Harley Seyedin, chairman and president of AmCham South China. “While differences remain, our commercial ties are substantial and mutually beneficial. Continued dialogue will foster greater understanding and create a more stable environment for trade and investment.”
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Nearly half (45%) of firms rank China as their top global investment priority, up 6 percentage points, and Guangdong’s capital city remains the most popular investment destination for the ninth year running. Guangzhou topped the list for 38 percent of respondents, followed by Shenzhen, up 6 percentage points to 29 percent, Shanghai (10%) and Beijing (5%).
An overwhelming 95 percent of surveyed companies reaffirmed their commitment to continuing operations in China, and three-quarters say they plan to reinvest in the country this year. Over a third (37%) of companies surveyed generate more than 60 percent of their global revenue from China, and member companies have earmarked an estimated US$13.79 billion from their Chinese profits for reinvestment over the next three to five years.
Most firms (59%) plan to expand their operational footprint in China over the next three years.
“The message from American businesses is clear: they are committed to long-term participation in China’s growth,” Seyedin concluded. “Companies are reinvesting not only to expand market share, but to innovate, localise and strengthen their integration within the Chinese economy.”
