US companies upbeat about future in China as they shake off Covid-19 effects, tension: AmCham survey

China’s stringent travel restrictions, however, is making it difficult to attract and retain foreign talent, AmCham Shanghai survey finds

China must strive to create stable business environment to attract US businesses and investment, says Ker Gibbs, AmCham Shanghai president

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Disagreements between Beijing and Washington on trade and tariff issues have been weighing on American companies operating in China since 2019. Photo: AP Photo

Published: 2:30pm, 23 Sep 2021Updated: 11:32pm, 23 Sep 2021

American businesses in China have bounced quickly from the Covid-19 related shutdown last year, with most companies optimistic about profits and investment despite lingering tension between the world’s two largest economies, according to a survey.

The study conducted by the American Chamber of Commerce in Shanghai (AmCham) also found that the existing travel restrictions by Beijing have made it difficult for US companies to attract and retain foreign talent.

“Businesses in China recovered quickly from last year’s lockdown. However, we are still feeling the pandemic’s effects, with members continuing to be negatively impacted by China’s travel restrictions,” Ker Gibbs, president of AmCham Shanghai, said on Thursday. “Overall business performance is good but there are signs of nervousness.”

He added that with the regulatory environment on both sides tightening, the space for American companies to operate was narrowing.

Ker Gibbs, president of AmCham Shanghai. Photo: Handout

The business lobby group said that 77.1 per cent of the 338 respondents in the annual survey reported profits in 2020, in line with previous years. More than 82.2 per cent of AmCham’s members expect to revenues to grow this year, it added.