US companies see record-low profits in China amid geopolitical tensions and slow growth, report says

HONG KONG (AP) — A report by the American Chamber of Commerce in Shanghai has found that U.S. companies in China are seeing record-low profits, with business confidence at an all-time low amid U.S.-China tensions and a slowing Chinese economy. Out of 306 companies polled, a record-low 66% were profitable in 2023. The report published Thursday also found that only 47% of respondents were optimistic about their business outlook in China over the next five years, the lowest in the survey’s history of over two decades. China and the U.S. have in recent years clashed over issues like trade and manufacturing, as well as China’s claims over the South China Sea. China is also grappling with a slowing domestic economy post-COVID.