USCBC 2025 Member Survey: US-China Relations and Tariffs Are Primary Challenges for US Companies, but Staying in Market Is Essential to Remaining Globally Competitive

WASHINGTON — July 16, 2025 — The US-China Business Council (USCBC), a private, nonpartisan, nonprofit organization of around 270 American companies that do business in China, today released the results of its annual Member Survey, with frayed US-China relations, mutually destructive tariffs, and lost market share among the leading concerns.

“Unsurprisingly, our 2025 survey results show that strained US-China relations and tariffs are the biggest concerns for American companies in China. Chinese policies that favor domestic companies are also eroding confidence and suppressing companies’ willingness to invest,” USCBC President Sean Stein said. “Despite this, the ability to operate in China’s fiercely competitive market remains non-negotiable for American companies, allowing them to access a burgeoning middle class while honing new technologies and practices essential for maintaining global competitiveness. What companies need immediately from ongoing trade talks, however, is an end to indiscriminate tariffs and the implementation of sensible policies that enable American companies to compete in China on a level playing field — and, of course, predictability.”

Survey highlights:

• Companies again identified US-China relations as the greatest business challenge, and tariffs jumped from eighth to second place amid renewed trade friction.
• Around 40% of companies report negative effects from US export control policies, with many experiencing lost sales, severed customer relationships, and reputational damage in China due to the intensifying perception that US firms are unreliable suppliers.
• 32% of companies reported losing market share in China over the last three years, while nearly 70% are concerned about losing market share in the next five years, reflecting concerns about China’s industrial policies shutting American firms out of the market.
• While 82% of companies reported profits in 2024, fewer than half are optimistic about the future, reflecting concerns over tariffs, deflation, and policy uncertainty. Fewer than half plan to allocate new investments to China this year, down sharply from last year.
• Overcapacity is spilling into new sectors, including health care and consumer goods. Insufficient domestic demand and overcapacity remain the top constraints on profitability.
• Over 80% of respondents say they invest in China to serve the domestic market, while nearly all report that they cannot remain globally competitive without their China operations.

The annual USCBC Member Survey seeks to measure business sentiment and benchmark challenges and opportunities in the China market. Our survey is unique among trade associations, as it incorporates responses from US company representatives in both China and the United States. Most respondents represent large, US-headquartered multinational companies that have operated in China for decades. About 40% represent companies that generated at least $1 billion in revenue in China last year.

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Editor’s note on methodology: This year’s survey was conducted between March and May of 2025 and draws from a pool of 130 member companies. Respondents have significant experience and presence in the China market — three quarters have operated in China for more than 20 years.

Respondents’ top 10 challenges were ranked using a weighted system to reflect the most significant issues they encounter while doing business in China. To ensure consistent analysis over time, the same methodology was used in previous years. Due to rounding, some stacked bar and donut chart totals may add up to slightly more or less than 100%.