US companies operating in China are growing more optimistic about their earnings outlook, reports Caixin, citing a new report from the American Chamber of Commerce (AmCham) in China. This comes despite mounting concerns over a slowing Chinese economy and continued geopolitical friction.
In its 2026 China Business Climate Survey, AmCham China found that 52% of member companies expect to be profitable this year—a six-percentage-point rise from 2025. But while earnings expectations have improved, the country’s weakening economic fundamentals have overtaken US-China relations as the most pressing concern for the first time in the survey’s two-decade history.
Among the nearly 370 firms surveyed, 73% expect revenues in China to grow or remain stable in 2025. The services sector reported a significant recovery, with the proportion of profitable firms jumping 15 percentage points to 61%. Roughly one-fifth of all companies surveyed said their profit margins in China exceeded their global average — the strongest result since 2022.