US Companies Worry About China’s Economy Over Trade
A survey released Friday in China reveals that US businesses are more worried about China’s slowing economy than about trade friction. Among the 368 companies that participated in the survey, 64 per cent identified the deceleration of growth in the world’s second largest economy as their primary concern, while 58 per cent pointed to US-China trade tensions as a significant challenge. One reason for that may be that many US companies have businesses focused on China’s huge market of about 1.4 billion people that do not rely on exports back to the US. Economists expect China’s economy to slow further this year after expanding at about a 5 percent annual pace in 2025.
Last year, exports experienced growth that outstripped imports, resulting in a historic trade surplus of nearly $1.2 trillion. The report indicated that business sentiment has shown improvement compared to last year. More than half of the respondents estimated that they made a profit in 2025, an increase from less than half the previous year. The journey for American businesses has been tumultuous in recent years, particularly following President Donald Trump’s return to office nearly a year ago.
A year-long trade truce reached between Washington and Beijing, following Trump’s imposition of tariffs as high as 145 per cent on imports from China, has eased some of the uncertainty for businesses. Trump is anticipated to travel to Beijing in April, while Chinese leader Xi Jinping might make a visit to the US this year. Overall, foreign investment in China has experienced a slowdown. According to government data, foreign direct investment reached 693 billion yuan ($99 billion) in the first 11 months of 2025, reflecting a decline of 7.5 percent compared to the previous year. “Our companies have to live with the political realities, but they’re focused on the business opportunities,” Michael Hart said at a media briefing. The Chinese government has expressed a desire for foreign investment, particularly from American sources.
The survey revealed that 48 per cent of respondents expressed optimism regarding the expansion of their markets in China over the next two years, an increase from 37 per cent the previous year. In December, during a significant annual economic work conference in Beijing, Chinese leaders recognized the necessity to reform and enhance systems aimed at promoting foreign investments. The survey took place from October 22 to November 20 of the previous year, coinciding with the meeting between Trump and Xi in South Korea, where they reached an agreement to prolong their trade truce.
