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| Fact Check |
| Profits over politics: Why U.S. companies still bet on China | |
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The U.S.-China Business Council, which represents 270 American companies doing business in China, recently released the results of its annual member survey. The 2025 survey results showed that despite trade tensions, the ability to operate in the Chinese market remains non-negotiable for American companies. The survey highlighted the resilience and complementarity of China-U.S. economic and trade cooperation. As the two largest economies in the world, China and the United States have close economic ties, and their cooperation is in line with the interests of both sides. Amid ongoing China-U.S. tariff negotiations, the survey results also reflected the obstacles American businesses face in China. For the second consecutive year, China-U.S. relations topped the list of concerns, while tariffs surged from eighth to second place. The survey revealed that high tariffs have hit manufacturing and tech firms hardest, with nearly 90 percent reporting major disruptions. Despite these pressures, 82 percent of the surveyed companies remained profitable in 2024, and nearly all emphasized that their global competitiveness depends on maintaining operations in China. This underscores a fundamental dilemma: American firms cannot afford to abandon the Chinese market, yet need relief from tariff-driven costs. Future negotiations must prioritize pragmatic solutions to mitigate harm to businesses, something the U.S. Government in particular needs to recognize. The survey results hold great importance for American businesses. The vast and rapidly growing Chinese market, with its immense consumer potential, remains indispensable for maintaining global competitiveness. By operating in China, U.S. companies gain direct access to the country's expanding middle class, securing profits while accumulating invaluable market experience. Beyond revenue, China serves as a dynamic testing ground for cutting-edge technologies and innovative management practices. The insights gained not only fuel local success but also strengthen these firms' worldwide operations, driving continuous improvement across their global networks. In essence, thriving in China doesn't just support growth here—it elevates competitiveness everywhere. For the Chinese economy, the continued presence of U.S. companies plays a stabilizing role in foreign investment while providing financial, technological and managerial support. These firms have generated numerous employment opportunities and stimulated growth across interconnected industries. U.S. investments in high-end manufacturing, digital transformation and premium services synergize effectively with Chinese enterprises' strengths, accelerating industrial upgrading. The sustained presence of American companies in China helps stabilize global industrial and supply chains. In today's interconnected global economy, China-U.S. economic ties form a vital nexus in worldwide production networks. By maintaining operations in China, American companies help mitigate the impact of trade frictions on global industrial chains while their continued engagement contributes to stabilizing bilateral trade relations and fostering global economic growth. This interdependence underlines an undeniable reality: Deeper economic collaboration is the inevitable path forward. Rather than confrontation, nations must resolve trade disputes through constructive dialogue and cooperation, the only way to ensure the sustainable development of the global economy. Copyedited by Elsbeth van Paridon Comments to lanxinzhen@cicgamericas.com |
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