Published: 16:27, June 25, 2024
Report: Most Chinese companies in US positive about future revenues
By Xinhua
Photo taken on Nov 14, 2022 shows the national flags of China and the United States in Bali, Indonesia. (PHOTO / XINHUA)

WASHINGTON — Despite increasingly pessimistic sentiments regarding future US-China bilateral and economic relations, the majority of Chinese companies operating in the United States expressed positive future revenue expectations, according to a report released Monday.

The China General Chamber of Commerce - USA (CGCC)'s 11th Annual Business Survey on Chinese Enterprises in the United States, released during the ongoing SelectUSA Investment Summit, showed that over 60 percent of the surveyed companies reported a deteriorating business and investment environment; 27 percent did not perceive any significant change; and only 13 percent noted a slight improvement compared to the previous year.

Regardless of the overall deteriorating environment and declining profit margins in some cases, a notable degree of long-term optimism persisted, with the majority of Chinese companies expressing positive future revenue expectations, the report said

The profit margin distribution showed a significant decline, reminiscent of the early pandemic period in 2020. Notably, there was an increase in the number of companies experiencing a decline in profit margins over the years.

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Regardless of the overall deteriorating environment and declining profit margins in some cases, a notable degree of long-term optimism persisted, with the majority of Chinese companies expressing positive future revenue expectations, the report said.

Nearly 90 percent of companies maintained or planned to increase their investment levels in the United States, reflecting a commendable sense of optimism, determination, and resilience, the report said.

"From a longer-term perspective, trade and investments have always been the cornerstone of the US-China relations," said Hu Wei, Chairman of the CGCC, who is also president and CEO of Bank of China USA.

Despite the various uncertainties, China remains the United States' third-largest trading partner and its largest importer, Hu noted.

Under the guidance of the "San Francisco Vision" outlined by the presidents of the two countries, companies from both sides need to strengthen communication and coordination to reduce unnecessary trade frictions and policy barriers and foster a more stable and open bilateral trade environment, Hu said.

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"This will not only help promote the recovery of the two countries' economies but also lay a solid foundation for the sustainable development of the global economy," Hu said.