American firms in China report record-low new investment plans for 2025, and doubts about their profitability
Briefly

American companies operating in China are encountering unprecedented challenges characterized by record-low new investment plans and diminishing confidence in profitability. Concerns about U.S.-China relations and tariffs imposed by the Trump administration are central issues. The survey revealed that over half of the participating companies have no new investment strategies this year, and around 40% have faced negative repercussions from U.S. export control measures, including lost sales and reputational damage. Moreover, China’s economic slowdown and increasing business risks contribute to diminished profitability for American businesses.
"Businesses in China are less profitable now than they were years ago, but risks, including reputational risk, regulatory risk, and political risk, are increasing," said Sean Stein.
"More than half of the companies in the survey indicated they do not have new investment plans in China 'at all' this year. That's a record high," Sullivan said.
Read at Fortune Asia
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