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US Firms’ Confidence in China Falls to Record Low on Covid Zero Policy, Political Tensions

  • New investment by US firms in China expected to slow in 2023
  • Bilateral ties not given priority they deserve: Business group
Bloomberg business news
WATCH: A new survey shows optimism among American businesses about China has fallen to a record low. James Mayger reports.Source: Bloomberg

American firms’ optimism about China has fallen to a record low, with President Xi Jinping’s Covid Zero policy causing more than half of companies to delay or cancel investment, a new survey from an US business group shows.

Pandemic-related shutdowns pose an even bigger headache to US companies in China than worsening relations between Beijing and Washington, according to a survey by the US-China Business Council. Only 51% of respondents expressed some degree of optimism about their five-year business outlook in the world’s second-largest economy, well down from 69% last year.