Confidence among U.S. companies operating in China has reached its highest point since 2021, driven by improved financial results and easing tensions between the two nations, according to a survey released on September 10. The findings reflect a more positive outlook among American businesses as bilateral trade relations show signs of stabilization.
The 2026 China Business Report, published by the American Chamber of Commerce in Shanghai, indicated that 58 percent of respondents expressed optimism about their five-year business prospects in China—a 17 percentage point increase that reverses a four-year decline. Meanwhile, those holding a pessimistic view dropped to 16 percent, marking the lowest level since 2021.
The report attributes this shift in sentiment largely to the recent thawing of trade frictions between China and the United States, alongside stronger corporate financial performance. However, despite the heightened optimism, U.S. companies remain cautious, closely monitoring the evolving market conditions and bilateral relations.
Jeffrey Lehman, chair of the American Chamber of Commerce in Shanghai, and Eric Zheng, its president, underscored the significance of the renewed confidence. They noted that both business optimism and profitability rates among their members have reached record highs. Last year, 78 percent of surveyed companies reported profitability, a 7 percentage point rise from 2024. Additionally, nearly one-third of the companies intend to increase investment in China in 2026, reflecting a recovery in investment sentiment.
Sector performance varied, with manufacturing emerging as the strongest performer. Within this group, 85 percent of businesses were profitable in 2025, a 5 percentage point increase from the previous year. The services sector, while posting the lowest profitability rate at 69 percent, recorded a significant year-on-year improvement of 14 percentage points.
The report also highlighted enhanced perceptions of the business environment’s transparency, with 55 percent of respondents now viewing it as transparent, up 7 percentage points. Zhou Haibing, deputy head of China’s National Development and Reform Commission (NDRC), spoke at a roundtable with U.S. multinationals in Beijing on the same day, emphasizing China’s commitment to further opening its economy and improving conditions for foreign investors during the 15th Five-Year Plan period (2026–2030).
Zhou stressed that a stable and predictable economic relationship benefits both countries and the global community. He noted that China hosts 84,000 U.S.-invested companies with combined revenues approaching $700 billion, demonstrating the depth and mutual benefits of economic ties. He acknowledged that disagreements are inevitable but highlighted that ongoing communication and mutual respect remain key to resolving issues.
Supporting this positive view, data from the Chinese Ministry of Commerce showed a 4.4 percent year-on-year increase in new foreign-invested enterprises during the first seven months of 2026. Foreign direct investment in actual use reached 438.33 billion yuan ($65.35 billion), with a notable 32.7 percent rise in investment in high-tech industries, which accounted for 41.6 percent of total foreign investment.
Lehman and Zheng described China as an essential market for U.S. firms aiming to sustain global competitiveness. They also pointed out the intensifying competition from Chinese companies, particularly in advanced technology sectors such as artificial intelligence, where 43 percent of surveyed members consider their local competitors to be more advanced in adoption.