Chinese market vital for US companies seeking global competitiveness, US business leaders say

BEIJING - US business officials and senior executives remain upbeat about the Chinese market, emphasizing its crucial role for US companies striving for global competitiveness.

"Companies continue to tell us that China is important for multinational companies who want to be globally competitive," Michael Hart, president of the American Chamber of Commerce (AmCham) in China, told Xinhua in a recent interview.

Thanks to a growing economy and frequent visits by senior US officials and CEOs to China, US businesses in China are increasingly optimistic about China's business environment and bilateral relations, Hart said.

In the annual China Business Climate Survey released by AmCham China in February, half of the 343 members surveyed placed China as their first choice or within their top three investment destinations globally, a 5 percent increase year-on-year.

China is "an important source of talent and innovation that helps American companies boost their global competitiveness," said the survey conducted late last year.

The report also found that though challenges remain, most members are maintaining their manufacturing or sourcing in China and expatriates have become more willing to relocate to China over the last year.

Noting China's 24 pro-foreign investment measures put forward by the State Council in August last year, Hart said that companies like the sound of that and are looking for "what's the actual action related to those policies."

Regarding US-China relations, Hart said he is happy to see "both governments trending now in an upward direction," which means that companies will be "a little bit more excited."

The companies surveyed also reported an improved financial performance for 2023, particularly in the consumer and services sectors, as well as an improved outlook.

In November 2023, fast-food giant McDonald's announced its decision to ramp up its stake in its China business from 20 percent to 48 percent. "This underscores McDonald's confidence in the development and business environment of the Chinese market," said Phyllis Cheung, CEO of McDonald's China.

"I don't think that there's any company that's big and truly international would doubt that in the long term, they need to be here in China. They need to have a significant presence. And they need to continue to develop this market because it's so big and growing that it really can't be ignored at all," Owen Messick, president of doTERRA China, a US essential oil company, told Xinhua.

"China's part of a global supply chain, and has years and years of successful investments, industries and buildup. And that's why companies are still here," said Hart.