Survey finds 95% remain committed; 3/4 polled companies plan reinvestment

Many US firms remain committed to the Chinese market, drawn by its vast consumer market, growing innovation capabilities and extensive supply chains, a leading business figure said.

Investment in China goes beyond expanding production capacity to include market development, talent cultivation and research, said Harley Seyedin, chairman and president of the American Chamber of Commerce in South China.

"For many American companies, the investment decision is not based on any single factor," Seyedin told China Daily in an exclusive interview during a recent trade fair in Xiamen, Fujian province. "It is about the combination of capabilities and opportunities that China can offer to multinational businesses over the long term."

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Echoing that commitment, the chamber's 2026 Special Report on the State of Business in South China — which surveyed 426 companies — found that 95 percent remained committed to the Chinese market, up 4 percentage points from 2024.

Among US respondents specifically, 91 percent said they would not "decouple" from China as a direct result of bilateral trade tensions, an increase of 6 percentage points year-on-year, Seyedin said.

Three-quarters of all respondents planned to reinvest in China this year. The chamber estimates that member companies have budgeted $13.79 billion from their China profits for reinvestment over the next three to five years.

Those investment plans reflect the breadth of opportunities companies see in China. Among respondents planning to increase investment this year, 56 percent identified sales, marketing and business development as a primary focus, while 37 percent cited staff development and training, and 36 percent cited research and development.

"These figures tell us something important: reinvestment today is not simply about building more factories or adding production capacity. A significant share of investment is focused on developing the Chinese market, strengthening local capabilities, investing in people, and enhancing innovation and productivity," Seyedin said.

China is increasingly evolving from its historical role as a low-cost manufacturer, he said. "China is moving beyond the traditional concept of a 'global factory'. For many international companies, it is increasingly an essential place where products and technologies can be developed, adapted, tested and commercialized for a highly competitive market."

Addressing the rapid technological rise of domestic Chinese competitors in electric vehicles, artificial intelligence, advanced manufacturing and biotechnology, Seyedin said this dynamic offers mutual benefits.

"I would describe the rise of capable Chinese companies as both a source of competitive pressure and an important source of opportunity — these two dynamics are not mutually exclusive. One of China's strengths today is the speed at which technologies, products and business models can be developed, tested and commercialized at scale."

The scale of existing commercial ties underscores the stakes for both countries. The two economies jointly account for nearly 45 percent of global GDP, while roughly 84,000 US-invested companies operate in China, generating close to $700 billion in annual revenue, said the National Development and Reform Commission.

Bilateral trade grew 1.3 percent year-on-year to 2.76 trillion yuan ($412.2 billion) in the first eight months, Customs data showed.

To sustain this investment momentum, Seyedin stressed that foreign firms seek transparent rules, fair market access and consistent implementation across government procurement, standards and cross-border data flows.

"Companies need more than good policies on paper; what matters is how consistently, transparently and predictably those policies are delivered on the ground," he said.

Efforts to lower trade barriers have offered welcome clarity. The Ministry of Commerce confirmed on Thursday that China and the US are maintaining close communication on a framework for reciprocal tariff reductions covering $30 billion worth of goods from each side.

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Wan Zhe, a professor of international trade at Beijing Normal University, said that progress in tariff negotiations would help reduce policy uncertainty, improve the business environment for companies on both sides, and encourage US firms to expand their investment and operations in China.

Citing the recently concluded China International Fair for Investment and Trade, Seyedin said dialogue platforms like CIFIT help "bridge the gap between an investment strategy and actual implementation".

Navigating geopolitical complexities remains an ongoing task, but disengagement is not on the table, Seyedin said, adding: "Rather than seeing the current environment as a choice between engagement and disengagement, many companies are focused on how to navigate uncertainty, manage risks and continue doing business in China. American companies, by and large, are not waiting for perfect conditions. They are continuing to look for ways to operate, invest and grow in China."

Contact the writers at lijing2009@chinadaily.com.cn