Survey says slowing economy is the No. 1 worry for US businesses in China, not trade friction

HONG KONG (AP) — U.S. businesses are more concerned about China’s slowing economy than trade friction, according to a survey by the American Chamber of Commerce in China released Friday.

Of 368 companies responding to the survey, 64% viewed slowing growth in the world’s second largest economy as their top worry, while 58% cited U.S.-China trade tensions as a key challenge.

One reason for that may be that many U.S. companies have businesses focused on China’s huge market of about 1.4 billion people that do not rely on exports back to the U.S.

Economists expect China’s economy to slow further this year after expanding at about a 5% annual pace in 2025. Growth in exports outpaced imports last year, leading to a record trade surplus of nearly $1.2 trillion.

The report said business sentiment has improved from last year. More than half of those responding estimated that they made a profit in 2025, up from less than half last year.

It has been a rocky ride for American businesses in recent years, especially after President Donald Trump returned to office nearly a year ago.

A year-long trade truce reached between Washington and Beijing, after Trump imposed tariffs of up to 145% on imports from China has alleviated some of the uncertainty for businesses. Trump is expected to visit Beijing in April and Chinese leader Xi Jinping may visit the U.S. this year.

Overall, foreign investment in China has slowed. Government data show foreign direct investment was at 693 billion yuan ($99 billion) in the first 11 months of 2025, down 7.5% from the previous year.

“Our companies have to live with the political realities, but they’re focused on the business opportunities,” Michael Hart, president of AmCham China, said at a media briefing. “We have felt that the Chinese government does want foreign investment, they do want American investment.”

The survey showed that 48% of those responding expressed optimism about growing their markets in China over the next two years, up from 37% the previous year.

During a high-level annual economic work conference in Beijing in December, Chinese leaders acknowledged the need to reform and improve systems for promoting foreign investments.

The AmCham survey was conducted between Oct. 22 and Nov. 20 last year, around the time when Trump and Xi met in South Korea and agreed to extend their trade truce.