American companies in China are seeing record-low profits, with business confidence at an all-time low amid US-China tensions and a slowing Chinese economy, according to a report published Thursday by a US business group.
Out of 306 companies polled, a record-low 66 per cent were profitable in 2023, according to the China business report published by the American Chamber of Commerce in Shanghai.
The report also found that only 47 per cent of respondents were optimistic about their business outlook in China over the next five years, the lowest in the survey's history of more than two decades.
Beijing and Washington have been at odds in recent years over issues like trade and manufacturing, as well as China's claims over the South China Sea.
China is also grappling with a slowing domestic economy, with lackluster consumer demand and deflationary pressures persisting even post-Covid.
The geopolitical tensions between both countries was the top challenge to businesses' operations in .
