Visitors view Tesla's Cybercab, which made its Asia-Pacific debut during the 8th China International Import Expo (CIIE) in east China's Shanghai, Nov. 6, 2025. (Xinhua/Fang Zhe)

The US companies in China have witnessed a sharp rebound in business confidence, supported by stronger financial performance, an improved geopolitical landscape and regulatory progress, a business report released by the AmCham Shanghai showed on Thursday.

Profitability rebounded to a post-pandemic peak, with 78 percent of respondents profitable in 2025, a seven-percentage-point increase from the previous year and the highest rate since 2019, according to the 2026 China Business Report released by AmCham Shanghai.

The report said the business confidence bounced back markedly after four years of record lows, with 58 percent of respondents, or up 17 percentage points year-over-year now optimistic about China's five-year business outlook.

The 55 percent said that the business environment in China is transparent, up 7 percentage points. 

Investment confidence in China improved with 28 percent of respondents increasing investment last year, the highest level in four years. 

The share redirecting planned China investments elsewhere fell to 39 percent, the lowest in several years. 

Members have clearly noticed government efforts to improve the regulatory environment, and this year those gains are reinforced by steadier US-China relations, according to Jeffrey Lehman, Chair of AmCham Shanghai.

Foreign companies continue to value the Chinese market for its scale and dynamism and, increasingly, as a base for serving the world, according to Jeff Yuan, head of Tax at PwC China, in the report. 

Even as local competition raises the bar and some firms diversify their supply chains, China remains to be a critical part of their global strategy for innovation, production and sourcing, Yuan added. 

Global Times