The US-China Business Council (USCBC) found that nearly 70% of member companies said they are optimistic about the five-year business outlook in China, reported Caixin.
Its survey showed that 83% counted China as either the top priority for their company’s global strategy or among the top five. At the same time, 86% of the organization’s more than 200 member companies reported that bilateral trade tensions have affected their business in China.
Reflecting long-term confidence in the China market, 87% of companies reported no plans to move production out of China, while only 4% said they shifted or planned to shift operations to the US because of lagging consumer demand in China. The remaining 11% reported recent or planned production moves to other parts of the world, with Thailand and Mexico the leading alternative destinations.
Profitability is a key factor supporting long-term confidence in the China market. The survey showed that 91% of companies indicate their China operations are profitable, though at a lower margin than before. In 2019, 69% of American companies said they achieved revenue growth in China, down from 79% in 2018 and 87% in 2017.