Despite a US presidential transition in 2021 and the beginnings of an economic recovery in both the United States and China, tensions in the bilateral relationship have only intensified since USCBC published its last annual member survey report. US companies operating in China often find themselves in the crossfire, and this year’s survey reflects that reality.
Over the last year, each country enacted policies—in the financial, trade, investment, and technology spheres—that run the risk of alienating the other from its market. Over the same period, the pace of China’s economic reforms related to intellectual property and market access slowed, while state support for domestic firms and restrictive data policies accelerated. These headwinds are compounded by uncertainty about the future of the US-China relationship, which is now impacting companies’ global strategies and investment plans.
This report seeks to take stock of the current business environment in China, unpack the most significant challenges faced by the US companies operating there, and explore the factors shaping their business decisions.