Most American companies in China expect the Chinese market to become more open in the coming three years, according to a survey by the American Chamber of Commerce in collaboration with Bain and Company.

The 2018 Business Climate Survey Report, covering over 400 firms operating in China, suggests that there is a rising expectation that ties between the US and China will improve. The optimism may be a result of President Donald Trump's recent visit to China, and President Xi Jinping's own trip to Florida.

Growth for many of those companies was “fairly strong,” according to Stephen Shih, a partner at Bain and Company. “This has led to some optimism in the market and the outlook for growth in 2018 is also more positive this year than 12 months ago."

William Zarit, chairman of the American Chamber of Commerce, added that even though many companies are practicing "cautious optimism" toward China's steady economic growth, and the transition to a "new normal,” he finds "that the consumer sector seems to be the most optimistic; we find the technology and R&D intensive are probably the least optimistic."

The American Chamber of Commerce in China represents more than 3,300 individuals from 900 firms across China. Nearly half have completed a significant portion of the survey, outlining their challenges, which include market restrictions, and often unfair enforcement of rules and regulations.

Although these firms face challenges when doing business in China, more than 60 percent of companies surveyed reported a profitable year in 2017, mostly due to the sheer size of the Chinese market and the overall high performance of the Chinese economy.

Shih added, "I think there is high degree of interest from many American businesses and foreign companies to find ways to invest in china, to serve customers in China, to build out their operations in China and innovate in China. And in many respects it does comes down to being able to participate in other industries. It’s about continuing to make sure the regulations are clean and consistently enforced."

China and the US have been each other's largest trading partners for years, but the bilateral relationship goes beyond trade. China is opening the doors to its financial sector, and moving ahead with plans to lowering barriers to entry in many industries. The country is also adapting to a new role as a leader in digital technology, and creating a favorable climate that won't leave foreign businesses out to dry.

Zarit said that in the end, a direct confrontation or trade friction between China and the US would not benefit anyone. 

“Our two economies are so intertwined and in a way, codependent, and what we would like to see is to get to an economic relationship that is based on fairness and reciprocal treatment," he added.