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Tesla IncUS business confidence in China rebounds from record low, domestic competition now the top concern
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The latest China Business Report from the American Chamber of Commerce in Shanghai says confidence among US businesses in China has recovered from a record low, after the US-China trade truce helped ease uncertainty over import tariffs and export controls. The survey, conducted between June 1 and June 28 with 262 companies responding, found that competition from domestic Chinese businesses is now the biggest source of concern, overtaking tensions between the two countries for the first time in four years, or since 2022. Fifty-five percent of respondents said China's business environment is transparent, up 7 points from last year's survey, while 58% held a positive or somewhat positive view of their business outlook in China over the next five years, up from a record low of 41% last year, and only 16% were negative or somewhat negative, down by more than half from 37% a year earlier. On performance, 78% of US companies reported being profitable in 2025, up from 71% in 2024 and the highest level since 2019, but the share of companies reporting revenue growth and improved operating margins fell to 53% and 37% respectively. Jeffrey Lehman, chairman of the American Chamber of Commerce in Shanghai, said members see government efforts to improve the regulatory environment and called on both countries to build on the positive momentum from recent talks. Eric Zheng, president of the American Chamber of Commerce in Shanghai, said US companies feel Chinese firms are moving ahead faster on innovation, citing competition between Tesla and its Chinese rivals. President Donald Trump and President Xi Jinping reached a trade truce last year, agreeing to cut some retaliatory tariffs and suspend some export control measures, but tensions flared again before the two leaders meet in Washington this month, amid a new round of disputes over tariffs, export controls and technology restrictions.
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