An annual survey by the American Chamber of Commerce in Shanghai and consultancy PwC China showed that the US business optimism has recovered. Presently, it is at a three-year record high despite businesses being reserved about the Covid-19 policies of China.
The report credited renewed optimism to rising revenues and ebbing concerns over the Covid-19 pandemic in China. The Chinese businesses recovered quickly from last year’s lockdown!
The survey was conducted from mid-June to mid-July. Three hundred thirty-eight countries participated in the survey. When asked about their five-year business outlook, 78% described themselves as “optimistic to slightly optimistic”. This percentage is 20% higher than the 2020 levels and shows a return towards the 2018 levels!
On the contrary, 10% of companies called themselves “pessimistic” about their five-year outlook. This is less than 18% in 2020 and 21% in 2019.
Two-thirds of the companies in the survey said that they plan to increase their headcounts in China this year. The number is a 31.4% increase from last year. But, 62.3% of them described the availability of the workforce as a significant hindrance to the operations!
The relationship between the US and China had reached an all-time low during the Trump government in 2019. The events that followed unfolded into a trade war with China. The US also imposed certain sanctions on some high-profile Chinese tech companies.
The Biden government, however, has taken direct actions against Beijing, leaving out the companies. Though the relations between the two nations are still tense, the trades and businesses have been relieved!
China’s borders are still under strict Pandemic policies. The respondent companies in the survey have also reported a drop in policy transparency, questioning the regulatory framework in the business.