US companies are showing renewed confidence in China following the trade truce between President Donald Trump and Chinese leader Xi Jinping, according to a survey released by the American Chamber of Commerce in China (AmCham).
The survey found that 48% of respondents are optimistic about China’s market growth over the next two years, an 11-percentage-point increase compared with the previous year. Another 27% said they remained neutral, signaling a cautious but generally positive sentiment among American businesses operating in the country.
The improved outlook follows the October 30 meeting in South Korea between Trump and Xi, where the two leaders agreed to a one-year pause on tariffs and a broader trade truce. They are scheduled to meet four times in 2026, including a likely visit by Trump to China in April. However, recent US threats to impose tariffs related to Iran could potentially strain relations and test the durability of the truce.
Despite this optimism, many companies remain cautious about the broader trajectory of US-China relations. The survey found that 52% of firms expect bilateral relations to worsen over the next two years, a decrease from 65% in the previous survey, indicating a moderation in pessimism.
Contrary to narratives suggesting a rush by multinationals to move operations out of China, the survey showed that most US companies remain committed to their Chinese operations. About 71% of respondents said they have no plans to relocate their business overseas, citing China’s strategic importance as a key factor in their decision to stay.
Investment plans also reflect this commitment. Around 57% of US companies said they plan to increase their investment in China, motivated by the country’s long-term market potential and strategic value. Firms planning to scale back pointed to uncertainties in bilateral relations and concerns about slower economic growth.
Financial performance for US companies in China also improved in 2025. Approximately 52% of firms reported being profitable or very profitable, up six percentage points from the previous year. The services sector recorded the strongest gains, with 61% of companies reporting profitability, underscoring the growing opportunities in sectors beyond traditional manufacturing.
Nevertheless, businesses continue to face challenges, particularly from non-tariff barriers. Companies reported slower customs clearance, delays in licensing and approvals, and tighter export control regulations—issues that have persisted as a result of trade tensions and regulatory uncertainties.
The survey drew responses from 368 member companies and was conducted between October 22 and November 20. It provides one of the clearest snapshots of US corporate sentiment toward China in the wake of the recent trade truce, reflecting a cautious optimism balanced by concerns over ongoing geopolitical risks.
AmCham officials highlighted that while the trade truce has eased immediate tariff-related pressures, companies remain focused on long-term strategic positioning. “The survey shows that US companies are seeing China as a vital market for growth, despite ongoing challenges in bilateral relations and regulatory hurdles,” said one AmCham representative.
Overall, the results suggest that American businesses are cautiously recalibrating their strategies in China. While risks remain, particularly from potential new tariffs or geopolitical tensions, the strong commitment to investment and the positive outlook for profitability indicate that China continues to hold significant strategic and economic importance for US firms.
