Business confidence among US companies in China rebounded sharply amid stronger financial performance, a more stable geopolitical landscape and perceived regulatory progress, according to AmCham Shanghai's 2026 China Business Report, released on September 10.

Of the 262 member companies surveyed, 78% said their China businesses were profitable in 2025, while 58% were optimistic about their five-year outlook in China.

The rebound in business confidence was accompanied by stronger investment activity. A total of 28% of respondents increased their investment in China in 2025, the highest share in four years. Views of the business environment also improved, with 55% describing it as transparent, up seven percentage points from a year earlier.

Eric Zheng, president of AmCham Shanghai, emphasized the great importance of the Chinese market, mainly from two dimensions.

China remains one of the most efficient manufacturing bases in the world and continues to be a highly strategic market for members' products and services, Zheng said. "That underpins the positive sentiment," he added.

Among members with US operations, three-quarters confirmed that their China presence benefits their US operations in some way, with one-third emphasizing that their China presence enhances the global competitiveness of their US operations.

A notable strategic shift is also emerging, with more surveyed companies adopting a global-oriented strategy. The "in China for the world" strategy has become the top business priority for 29% of surveyed companies in 2026, surpassing the "in China for China" model chosen by 24%.

More respondents are also betting on China-based innovation, the report said. Half of surveyed members with China-based research and development (R&D) facilities plan to increase R&D spending this year, up sharply from one-third in 2025.

In a vote of confidence in the Chinese market, General Motors (GM) in August announced a 20-year extension of its joint venture partnership with Chinese automaker SAIC Motor, with it now running to 2047.

"We will continue to strengthen our performance here in China by developing products and technologies in China, for China, and bringing them to market faster," said John Roth, senior vice president of GM and president of GM China. The joint venture plans to launch at least 30 new energy vehicle models by 2030.

"We see meaningful opportunities to grow beyond China. SAIC-GM has strong local capabilities across engineering, manufacturing and quality, and we can apply those strengths in select international markets, including the Middle East, Africa, South America, Mexico and Asia-Pacific," Roth said.

Siemens offers another example. Its Digital Native Factory in Nanjing, the German technology group's largest research and production center for computer numerical control systems, drives and electric motors outside Germany, was added to the World Economic Forum's Global Lighthouse Network in January.

The factory has introduced digital twins, modular automation and more than 50 AI applications. Siemens said these technologies had cut its time to market by one-third compared with 2022.

In a March interview with Xinhua, Siemens global executive vice president Xiao Song said the breadth of China's industries, the depth of its manufacturing system, the speed of technological innovation and the openness to new technologies created opportunities for foreign companies.

A separate 2026 survey by the European Union Chamber of Commerce in China also identified innovation, cost and speed as strengths of the Chinese market. However, it noted continuing economic pressure, market access barriers and regulatory concerns.

Jeffrey Lehman, chair of AmCham Shanghai, said members had seen improvements in the regulatory environment, reinforced by steadier China-US relations. He also called for a stable and transparent framework that supports cross-border trade and investment.

(With input from Xinhua)