BEIJING: US firms operating in China are optimistic about their future in the country, according to a report released by the American Chamber of Commerce in South China (AmCham South China) on Wednesday. Seventy-three percent of the firms reported a positive or very positive overall return on investment in China in 2024.
The report, which surveyed 316 companies in the region, found that 76 percent of those surveyed plan to reinvest in China in 2025, with a sizable number of these setting aside under $10 million each, accounting for 77 percent of the total. A notable six percent of the companies have also allocated over $250 million for reinvestment plans in the coming year. The report estimates that the member companies have set aside $14.59 billion from profits in China to reinvest over the next 3 to 5 years, a surge of 33.18 percent over the previous reinvestment figure.
At the same time, many big brand US firms are building greater links within the Chinese market as they seek new and emerging opportunities. New electric vehicle manufacturer Tesla, spearheaded by billionaire Elon Musk, has invested heavily in the Chinese market in recent years. The company’s Gigafactory in Shanghai boasts a localization rate exceeding 95 percent, China Daily reported. Despite a slight drop in its global deliveries last year, sales on the Chinese mainland reached a record high of 657,00 units, up 8.8 percent year-on-year, the article stated, adding that Tesla has also been included in multiple local government procurement catalogs, highlighting China’s equal treatment of domestic and foreign enterprises.
Another big American company, petrochemicals major ExxonMobil secured access to a $1 billion LNG receiving terminal that commenced operations last September in Huizhou, Guangdong Province under a 20-year usership agreement. –The Daily Mail-China Daily news exchange item
