US Companies in China Face New Challenges Amid Trade Tensions

American companies in China face record-low new investments and waning profitability due to US-China trade tensions and tariffs. US export controls and China's slowing economy further exacerbate uncertainty. Despite some US-China dialogue, unresolved trade issues and rising business risks persist, prompting many companies to consider relocating operations.

American companies operating in China report the lowest levels of new investments this year amidst declining confidence in profitability due to deteriorating US-China relations and tariffs imposed by former President Donald Trump, based on a recent survey.

These businesses are also grappling with challenges arising from China's sluggish economy, characterized by weak domestic demand and industry overcapacity, which is cutting into profits.

However, efforts to reduce sky-high tariffs following high-level discussions in Geneva and London have occurred, although long-term trade uncertainty remains, pushing over a quarter of American companies to plan relocating their operations from China.

(With inputs from agencies.)