AmCham China Flash Survey on ChinaBusiness Climate Sentiment Updates, Apr. 2023.
Executive Summary
• Member companies’ most recent views on China’s two-year business outlook were more optimistic compared to the 2023 BCS results. This was especially true in China’s economic recovery, where 59% of members reported a positive outlook, up 22 percentage points (pp) from the 2023 BCS results (33%). 59% of members also expressed positive views on China’s domestic market growth, up from 42%, although the number of those who were optimistic about the potential for profitability only rose slightly,
up 4pp to 37%.
• Nearly half (48%) of members expect their industry market growth to increase at varying levels, while 15% reported uncertainties.
• 24% of members said they will increase investment in China at different levels in their short-to-mid-term (2023-25) investment plans. Another 40% of members said they had no change in their plans.
• US-China relations remain the most challenging issue for members who do business in China. Pessimistic views on the bilateral relation have worsened, rising from 73% in the 2023 BCS survey results to 87% for this Flash Survey.
• The majority of members (73%) are not moving their supply chains outside of China, while another 23% are either considering to relocate it or are already doing so. Risk management is the top reason for considering relocation, cited by 44%. Additionally, 27% of respondents said their companies had re-prioritized other countries, a 21pp increase from the 2023 BCS survey results