China US Photo: VCG

 
Most US companies remain committed to pursuing opportunities in China over the long term with nearly all reporting that they can't remain globally competitive without their China operations, according to the annual member survey released by the US-China Business Council (USCBC) on Wednesday. 

Meanwhile, the survey revealed that China's long-term potential remains a key driver for US firms' current and future investment. According to the result, 82 percent of respondents chose accessing or serving the China market as a major objective for existing and future investments in China, topping the list. 

In addition, 33 percent of respondents chose enhancing their companies' global competitiveness as another main objective for their existing and future investments in China, ranking the second. Other objectives include localizing regional supply chain in China to reduce risk due to factors such as US-China tensions and tariffs, as well as accessing domestic innovations that are unavailable elsewhere. 

As for China's importance to the US companies' global competitiveness, American companies view their business activities in China as essential to enhancing their global competitiveness. Some 28 percent of respondents say they would not be globally competitive without China, while 38 percent identify China as a key element of their global footprint, according to the survey. 

When it comes to the top opportunities for US firms' China business this year, 58 percent of respondents chose fulfilling demand for premium products or services, followed by 37 percent saying leveraging domestic supply chains for manufacturing, testing, and distribution, according to the USCBC survey. 

Over 30 percent of respondents chose integrating digital solutions and tools into business operations. Other opportunities include absorbing innovations and best practices to support domestic and global product development, as well as partnering with Chinese companies to support their overseas investment. Moreover, 82 percent of companies reported profits in 2024, according to the report. 

As for the challenges that US companies face in China, US-China relations and tariffs remain the top two. In terms of whether tariffs on US-China trade affect the companies, 68 percent of respondents chose yes. 

Chinese officials have repeatedly expressed opposition against unilateral and protectionist tariffs. Asked to comment on an agreement between the US and Indonesia over tariffs at a regular press conference on Wednesday, Lin Jian, a stockperson for the Chinese Foreign Ministry, said that "our stance has always been that parties need to settle economic and trade disputes through equal-footed dialogue and consultation, and jointly foster a sound environment for international economic and trade cooperation."

US firms' commitment to the Chinese market is also reflected at some major events. The number of US exhibitors at the ongoing third China International Supply Chain Expo increased by 15 percent compared to the previous session, continuing to lead among foreign exhibitors, with a 10 percent increase in exhibition area, according to media reports. 

Global Times