U.S Business Optimism in China Rebounds a Three-Year High

According to an annual survey, U.S business optimism for China’s recovering economy has reached a three year high despite some concern over Beijing’s covid policy.

In recent events, Beijing has issued a widespread crackdown on companies which has shaken investor confidence in other countries including the U.S. The survey conducted by the American Chamber of Commerce in Shanghai revealed that most of the optimism was directly linked to increased business revenues and diminishing Covid infections.

In 2019, China and U.S trade relations began to deteriorate as more sanctions were implemented on leading Chinese tech firms by the Trump Administration. Ker Gibbs, president of the American Chamber of Commerce in Shanghai said, “Business in China recovered quickly from last year’s lockdown. However, we are still feeling the pandemics effects, with members continuing to be negatively impacted by China’s travel restrictions. Overall business performance is good but there are signs of nervousness.”

From the survey, out of 338 respondents, 78% said they were optimistic about their business outlook. This percentage is 20 points higher as compared to a previous survey. On the other hand, the remaining respondents said they were still skeptical and pessimistic about future business activity.

China has kept its borders closed for most part of the year, aiming to curb covid infections effectively. This has led to fewer number of visitors for work related purposes which in return had a negative impact on labor availability and business outlook.

©Photo: Reuters