The latest survey showed that U.S. enterprises in China could make a profit, but are less optimistic about investing there because of intense U.S.-China relations, China’s inconsistent regulations, inferior market access for foreign companies, increasing labor costs, and the extreme COVID-zero policy.
Fifty-nine percent of the survey respondents had increased profits in China in 2021, higher than the 35 percent reported in 2020. Yet, only one quarter of the enterprises planned to increase investment in the world’s second-largest economy by more than 10 percent. Over one-third of them said they would reduce investment due to China’s uncertain policy environment.
