AmChina Shanghai 2026 Report: Business confidence rebounds sharply

The American Chamber of Commerce Shanghai's 2026 China Business Report shows a sharp rebound in business confidence, supported by stronger financial performance, an improved geopolitical landscape and regulatory progress.

The report shows profitability rebounded to the highest rate since 2019, with nearly four in five respondents (78%) profitable in 2025, a seven-percentage-point (pp) increase from the previous year.

Business confidence bounced back markedly after four years of record lows, with 58% of respondents (up 17 pp year-over-year) now optimistic about China’s five-year business outlook.

A majority (55%) said that the business environment in China is transparent, up 7 pp. Investment confidence in China improved with 28% of respondents increasing investment last year, the highest level in four years.

For the first time since 2022, domestic competition (68%, up 5 pp) was the top challenge for members' China operations, surpassing US-China tensions (53%, down 13 pp).

"The main reason for that has been a stabilization in the geopolitical environment," said Jeffrey Lehman, Chair of AmCham Shanghai. "If anxiety about geopolitics slips, that means the number one concern is the continuing improvement in the quality of domestic competition."

The report is based on surveys of 262 member companies.