U.S. companies continue to make money in China, but they’re less optimistic about the future because of uncertainty over the direction of Beijing’s policies, the president of the U.S.-China Business Council said today. "What we're seeing is a clear shift over the last four years," USCBC President John Frisbie told reporters in a preview of the group's annual survey of China’s business environment, to be released Monday. "It's not pessimistic, but there's clearly a point of view that's getting less optimistic, if you will." Despite a top-down reform effort led by Chinese President Xi Jinping, companies have not yet really seen any change on the ground when it comes to such things as restrictions on foreign investment or enforcement of intellectual property rights, among other top 10 business concerns, Frisbie said. "The main point I'm making here is we're still at the beginning stage of the reform effort, not the end,” he said. “But also the outcome remains unclear because there just hasn't been much impact yet. The jury is still out." While about 85 percent of U.S. companies operating in China remain profitable, rising labor and other costs have squeezed margins, he said. In addition, "Chinese companies are getting better,” Frisbie said, referring to the No. 1 challenge that American companies say they now face in China. “They're moving up the value chain. No doubt about it." Policy uncertainty and slower Chinese economic growth has also dampened enthusiasm among U.S. companies for expanding operations in China.