‘Reinvestment surge’: US firms in China eye long-term success with confidence in future

After continuing to reinvest in the world’s second-largest economy last year, American firms with a presence in China are among the foreign firms that intend to expand their existing operations and strive for additional market share in the coming years, even in the face of weakened confidence regarding the future of US-China relations, according to the latest survey results from a US business lobby.

The findings by the American Chamber of Commerce (AmCham) in southern China, released on Wednesday, highlighted the stubborn confidence issue and uncertainties surrounding bilateral trade tensions – concerns that Beijing moved to address last week with the unveiling of a new action plan.

The survey, conducted from October 11 to December 23, offered an annual assessment of the economic outlook and business sentiment among AmCham members in the southern region.

With an eye on the future, member companies said they had set aside US$14.59 billion from profits in China to reinvest over the next three to five years, looking to expand operations and capture additional market share. That total marks a 33.18 per cent surge from the previous reinvestment figure, and the report said “this considerable rise in allocated funds underscores a renewed confidence in China’s market potential”.

In all, 57 per cent of American firms said they reinvested in China last year, in line with the previous year’s total. Meanwhile, 43 per cent reported revenue growth in 2024, while 38 per cent experienced a decline.

Among all businesses surveyed, American firms accounted for 34 per cent of the total, while companies from mainland China accounted for one-quarter. Companies from Hong Kong or Macau made up 17 per cent, those from Europe comprised 14 per cent, and other countries rounded out the last 10 per cent.