Other top concerns include inconsistent and unclear policies and enforcement, rising labor costs, and data security issues.
Despite encouragement from Chinese leaders that Beijing welcomes foreign businesses, many chamber members continue to face barriers to investment and operations, the report notes. actions, including policies that discriminate against them and public relations campaigns that create suspicion toward foreigners.
A recent survey by the American Chamber of Commerce in China revealed that the biggest concern for American companies operating in China for the fourth year in a row is simmering tensions between Beijing and Washington. Many members of the chamber continue to face barriers to investment and operations. Fewer than half of members expect to be profitable this year.
Although US-China relations improved last year, this year's US presidential election in November is greatly influencing the future business environment.
“We recognize that there are significant areas of dispute in the US-China relationship, many of which have no prospect of easy or short-term resolution,” it said.
The department's top priority today is exchanging high-level communications between the two sides.
Although profits of American companies operating in China improved last year, less than half are expected to be profitable this year.
However, many AmCham members are more optimistic about the growth of the Chinese economy.
The report recommends that Beijing develop and implement transparent and realistic economic policies that treat domestic and foreign entities equally.
It called on China's leaders to clarify and narrow the scope of the country's anti-espionage law to prevent it from interfering with normal business operations.
It also calls on the US government to avoid using unilateral controls that may be ineffective and do not meet national security and foreign policy goals.
The report added that US companies currently have no plans to move their supply chains out of China, but their willingness to increase investments there and consider the country a strategic focus has decreased due to profits. benefits decrease.
Fiber2 Fashion News Desk (DS)
