Chinese firms in US facing tough conditions

Twenty-four percent of Chinese companies surveyed experienced a revenue decline of more than one-fifth; 19 percent expected their revenues in the US to decline over the next two years, compared with 14 percent in last year's survey.

Eighty-one percent of respondents were concerned with the bilateral tensions between the US and China, and 68 percent expressed concerns over inflation in the US and its economic impact. More than 80 percent of Chinese companies were satisfied (or neutral) with all aspects of the US business environment. Fluctuating business cycles in the past helped Chinese companies cope with short-term fluctuations.

Based on survey result analysis and interviews with senior management, the report made five recommendations for Chinese companies in the US: Do not let a crisis go to waste; build a systematic approach to increase the success rate of portfolio expansion; leverage the US market's propensity for innovation; embrace new digital tools; treat North America as a single market; and consider "regional expansion "to Canada and Mexico.

In an interview after the report launch, Li told China Daily that the impact of US-China relations on both Chinese enterprises in the US and US enterprises in China is significant and palpable, affecting their operations and strategies.

"In the current environment, Chinese enterprises in the US place great importance on adhering to US compliance standards, as this is crucial for international market operations," Li said. "For example, they invite third-party professional institutions and law firms to adapt to local US standards, terms and laws to ensure the lawful and healthy operation of their enterprises.

"Additionally, the Chinese companies contribute to social services and shoulder social responsibility, which are also crucial for them."