SHANGHAI: The majority of US companies surveyed are optimistic on China’s business outlook for the next two years, while many believe that succeeding in China is vital to their long-term global competitiveness, according to survey results released by the American Chamber of Commerce (AmCham) in China.

The survey, conducted between April 18 and 20, found China’s business outlook to be more promising compared with the results of its previous survey published in early March.

Thanks to the country’s fast economic recovery, 59% of the respondents reported a positive outlook, an increase of 22 percentage points compared with the previous results.

About 73% of the respondents have no plans to relocate their supply chains, even though bilateral tensions continue to pose a significant business challenge for them, according to the survey.

The survey drew responses from 109 companies with operations throughout China.

Colm Rafferty, chairman of AmCham China, said that China remains an important and vibrant market for US companies, given its size as the world’s second-largest economy, with domestic consumption increasingly driven by the sizeable and affluent middle-income group.

The survey found that the Yangtze River Delta region, the Guangdong-Hong Kong-Macao Greater Bay Area and the Beijing-Tianjin-Hebei region, as well as the Hainan Free Trade Port, are the most attractive locations for planned investment by US companies.

“China remains the elevator industry’s largest new equipment market, with substantial opportunities for service businesses.

“The country is a very strong long-term market for many US businesses, with continuing urbanisation, infrastructure building and urban renewal,” said Judy Marks, chairwoman, president and CEO of Otis Worldwide Corp, the Connecticut-based elevator manufacturer.

AmCham China’s survey also found that the deteriorating China-US relations have presented the most pressing concerns for US companies operating in China, with pessimistic sentiment growing in recent months.

Their views on the bilateral relationship have worsened, with the percentage of respondents expressing a pessimistic opinion increasing from 73% in the chamber’s previous survey to 87% in this survey. — China Daily/ANN