(Yicai) Sept. 20 -- Nearly one-third of the member companies of the American Chamber of Commerce in Shanghai expect to increase investment in China this year, according to a survey by the body.

Thirty-one percent of the AmCham Shanghai members will invest more in China this year than last year, up 6 percentage points from last year, thanks to China’s market growth potential, the 2023 China Business Survey, conducted by AmCham Shanghai with the support of PricewaterhouseCoopers China on 325 AmCham Shanghai members, showed on Sept. 18. 

Over half of AmCham Shanghai member companies expect their revenues to increase this year from the previous one, with the figure rising to 74 percent among retailers, according to the survey.

“Despite the challenges, our member companies remain convinced that China is an important market and that they should pursue mutually beneficial commercial opportunities in this country while mitigating potential risks,” said Eric Zheng, president of AmCham Shanghai. 

Two-thirds of the firms face decoupling pressure, with 19 percent of them considering moving some of their operations outside China within the next three years, mainly because of the uncertainties about US-China relations. But most believe the issues are more related to the US government’s policies than the Chinese government’s. 

The survey showed that AmCham Shanghai companies recognize the work of the Chinese government. The recent extension of preferential individual income tax policies on foreign expatriates’ benefits-in-kind and the release of the State Council’s 24-point measures to ensure national treatment of foreign-invested enterprises addressed some of the business community’s key concerns.

With transparency and predictability being more important than ever in offsetting the geopolitical environment, the regulatory environment has considerable room for improvement, AmCham Shanghai noted, adding that the situation is improving.

“After years of slow improvement, more companies are reporting intellectual property challenges are hindering their business, and companies say that geopolitical tensions are adding to the uncertainty and making operations more challenging,” said Sean Stein, chairman of AmCham Shanghai.

“Recent developments are more encouraging,” Stein noted. “After several high-level visits, the US and China have taken steps to stabilize the bilateral relationship, and a series of reforms announced in August signal the Chinese government’s desire to improve the investment climate. If implemented, those reforms could reduce uncertainty and help restore investor confidence.”

Editor: Futura Costaglione