Survey finds companies expect rising revenue in long term, showing resilience
Despite facing a "significant performance downturn" last year, Chinese companies operating in the United States expect rising revenue trends in the long term, according to a survey.
The 11th Annual Business Survey on Chinese Enterprises in the United States was launched on Monday at an event hosted by the China General Chamber of Commerce-USA, or CGCC, on the sidelines of the SelectUSA Investment Summit, an annual US federal government program aimed at attracting foreign direct investment.
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The CGCC conducted the survey in April and May of some 100 Chinese enterprises, including financial institutions, industrial firms and consumer discretionary companies, about their revenue in the US market in the past year and their future outlook.
According to Hu Wei, the chairman of the CGCC, who is also the chief executive officer of Bank of China USA, the survey shows the following key trends: "Surveyed companies' negative perceptions of the business and investment environment in the United States have increased, investment intentions have somewhat declined, but the goal of engaging in the US market remained clear.
"Chinese companies experienced a significant performance downturn in the United States last year. ...But the overall expectations for long-term revenue trends remain optimistic," the survey said.
"The overall revenue trend in 2023 continued the clear decline that began in 2022. This trend marks a notable shift from the strong rebound year seen in 2021," it added.
The survey found that 21 percent of the respondents saw revenue declines exceeding 20 percent last year, compared with 13 percent in 2022.
However, "a notable degree of long-term optimism persisted, with the majority expressing positive future revenue expectations".
The survey showed that nearly 60 percent of Chinese enterprises in the US aimed to maintain stable investment levels, with 30 percent planning to increase investment. Only about one-seventh of companies intended to reduce investment.
Hu said: "Chinese companies have demonstrated outstanding resilience … adapting to the US market and achieving sustainable developments … regardless of prosperity or adversity."
Jing Quan, the charge d'affaires of the Chinese embassy in the US, said that some people are now advocating a "new Cold War" between China and the United States, while both sides should "firmly and loudly say no" to this concept.
"Efforts should be made to stabilize the general direction of the relationship between the two countries, provide more confidence, certainty and predictability for the people of the two countries and all walks of life, and set up positive expectations for the China-US relationship," Jing said.
Bridging role
"The Chinese embassy will continue to play a bridging role and work hard to serve the business community of the two countries and create a sustained good and stable business environment. I hope the US side will also move in the same direction," he added.
Marisa Lago, undersecretary for international trade at the US Department of Commerce, said the first meeting between the working groups she co-led with Chinese Vice-Minister of Commerce Wang Shouwen in April was an important milestone. Lago's team is planning a second meeting in China later this year.
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She said that resuming regular intergovernmental communications and exchanges "reduces the risk of misunderstandings and prevents escalation of irritants".
Johnson Qin, the chairman of the board and CEO of Shenzhen Capchem Technology, a battery manufacturer, told China Daily that it is normal for there to be cyclical fluctuations in the US-China commercial relationship.
"I'm still optimistic for the future," he said.
