US firms in China shake off gloom as profits rebound, survey finds
US companies in China report renewed confidence, with 58% optimistic on five-year outlook and 78% posting profits, per AmCham survey.
American companies operating in China have turned markedly more optimistic about their long-term prospects, according to an annual survey released by the American Chamber of Commerce in Shanghai (AmCham Shanghai). The shift marks a clear reversal from last year's record-low sentiment, which had been dragged down by trade friction, slowing growth, and intense local rivalry.
The survey found that 58% of respondents now feel positive about their five-year business outlook, a jump of 17 percentage points from the previous year. This ends a four-year stretch of subdued confidence. The improvement comes as Washington and Beijing work to stabilise ties following a trade truce late last year, and ahead of Chinese President Xi Jinping's expected visit to Washington this month.
Jeffrey Lehman, chairman of AmCham Shanghai, attributed the mood change to the diplomatic reset. He noted that this year's survey followed a successful May summit between Xi and US President Donald Trump in Beijing, which reassured members about a constructive, reciprocal relationship.
Financial performance has also strengthened. Some 78% of the 262 companies surveyed said their China operations were profitable last year, the highest share since 2019. This rebound appears to be driving renewed investment: 28% of firms increased their China investment in 2025, the largest proportion in four years, and 31% plan to do so in 2026.
Interestingly, domestic competition has now overtaken US-China tensions as the biggest business challenge, cited by 68% of respondents. Perceptions of regulatory transparency improved, with 55% viewing the environment as transparent, though fewer expect further opening ahead.