U.S. companies are having a more difficult time making money in China post-pandemic, according to an annual survey by the American Chamber of Commerce in China.
Last year, 19% of surveyed companies said earnings margins, before interest and taxes, were higher in China versus globally. While that figure is an increase from 12% in 2022, during which strict Covid-19 controls were in place in the country, its a drop from the 22% to 26% seen between 2017 and 2021. While China’s economy has grown quickly in the last several decades, that growth has slowed in recent years due to the pandemic, fewer exports and a real-estate slowdown.
China was listed among the top three investment destinations by about 50% of survey respondents, an increase of 5% from 2022. But almost half do not plan to increase investment the country, or plan to decrease their investments in China.
Most of the surveyed companies plan to continue manufacturing in China, but an increasing percentage is considering moving some operations out of the country.
