Jacksonville, FL, January 16, 2026
A recent survey by the American Chamber of Commerce in China indicates a shift in focus for U.S. businesses, with 64% citing China’s slowing economy as their primary concern, surpassing trade tensions. The survey also noted improving sentiment, with more companies reporting profits and optimism about market expansion. However, foreign direct investment has decreased, prompting government efforts to foster a more favorable business environment. The evolving relationship between economic factors and trade is crucial for U.S. companies operating in China.
U.S. Businesses Focus on China’s Economic Slowdown Over Trade Tensions
Survey reveals shifting priorities for American companies in China
Jacksonville, FL — A recent survey conducted by the American Chamber of Commerce in China indicates a notable shift in priorities for U.S. businesses operating in the Chinese market. While trade tensions between the U.S. and China have occupied headlines, the primary concern for American firms now appears to be China’s slowing economy. Of the 368 companies that responded, 64% identified sluggish economic growth as their dominant worry, compared to 58% who pointed to trade friction. This insight demonstrates how economic factors are presently taking precedence over trade disputes for businesses in China.
Many U.S. companies have established a foothold in China’s vast domestic market, which encompasses roughly 1.4 billion consumers. These businesses often do not depend heavily on exports back to the U.S., which makes them less vulnerable to ongoing tensions. Despite a projected slowdown in China’s economic growth, with an expected expansion rate of around 5% annually by 2025, the country is still seeing a remarkable trade surplus of nearly $1.2 trillion.
Improved Business Sentiment
Amidst these economic challenges, sentiment among U.S. companies in China has shown signs of improvement. More than half of the surveyed respondents reported profitability in 2025, a rise from the previous year. Furthermore, 48% expressed optimism about expanding their markets in China over the next two years, an increase from 37% in the prior year. This suggests a resilient confidence in the potential of China’s market despite prevailing economic hurdles.
Decline in Foreign Direct Investment
However, it is important to note that foreign direct investment (FDI) in China has shown a decline. Recent government data revealed that FDI reached 693 billion yuan (approximately $99 billion), highlighting the broader concerns that influence investment decisions among foreign businesses. This trend warrants attention as it could shape the future landscape of international business in China.
Chinese Government Support Initiatives
In an effort to attract and nurture foreign investment, the Chinese government has been proactive in its support for international businesses. There have been ongoing discussions and commitments aimed at creating a more conducive environment for companies operating within China. This support could potentially bolster confidence among foreign investors and lead to increased market participation.
Context of Survey Findings
The survey conducted by the American Chamber of Commerce took place between October 22 and November 20, 2025, around the time President Donald Trump and Chinese leader Xi Jinping agreed to extend their trade talks. This period of relative stability may have influenced the perceptions of American businesses, revealing a complex relationship between economic conditions and trade relations that shapes business sentiment.
Key Features of the Survey Findings
| Aspect | Details |
|---|---|
| Primary Concern | 64% of U.S. businesses view China’s slowing economy as their top concern. |
| Trade Tensions | 58% cite U.S.-China trade tensions as a concern. |
| Profitability | More than half of respondents reported making a profit in 2025, an increase from less than half the previous year. |
| Market Expansion Optimism | 48% expressed optimism about growing their markets in China. |
| Foreign Direct Investment | Foreign direct investment was 693 billion yuan ($99 billion). |
| Chinese Government Support | The Chinese government has acknowledged the need to reform and support foreign investment. |
In conclusion, while trade tensions remain a significant topic of discussion, U.S. companies appear to be increasingly concerned about China’s economic slowdown. With the potential for growth and profitability still evident in the Chinese market, it’s clear that navigating these complexities is crucial for American businesses. As the city of Jacksonville and entrepreneurs across Florida embrace the changing economic landscape, supporting local businesses and encouraging positive trade relations is essential for fostering community growth and ensuring ongoing success.
Frequently Asked Questions (FAQ)
What is the primary concern for U.S. businesses operating in China?
According to a recent survey by the American Chamber of Commerce in China, 64% of U.S. businesses view China’s slowing economy as their top concern, surpassing the 58% who cite U.S.-China trade tensions.
Why are many U.S. companies less affected by trade tensions with China?
Many U.S. companies have established operations within China’s vast domestic market, which comprises approximately 1.4 billion people. These businesses often do not rely on exports back to the U.S., making them less susceptible to trade tensions.
What is the current economic outlook for China?
Economists anticipate that China’s economy will continue to slow, projecting an expansion rate of about 5% annually in 2025. Despite this, China’s exports have outpaced imports, leading to a record trade surplus of $1.2 trillion in 2025.
How has business sentiment among U.S. companies in China changed recently?
Business sentiment has improved, with more than half of the respondents reporting profits in 2025, an increase from less than half the previous year. Additionally, 48% expressed optimism about expanding their markets in China over the next two years, up from 37% the year before.
Has foreign direct investment in China increased or decreased?
Foreign direct investment in China has decreased. Government data indicates that foreign direct investment was 693 billion yuan ($99 billion).
What steps is the Chinese government taking to attract foreign investment?
The Chinese government has shown a willingness to support foreign and American investment. During a high-level annual economic work conference, initiatives were discussed to create a more favorable environment for international businesses operating in China.
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Author: STAFF HERE JACKSONVILLE WRITER
The JACKSONVILLE STAFF WRITER represents the experienced team at HEREJacksonville.com, your go-to source for actionable local news and information in Jacksonville, Duval County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Jacksonville Jazz Festival, Riverside Arts Market, and World of Nations Celebration. Our coverage extends to key organizations like the Jacksonville Chamber of Commerce and JAXUSA Partnership, plus leading businesses in logistics, healthcare, and entertainment that power the local economy such as CSX Corporation, Baptist Health, and VyStar Credit Union. As part of the broader HERE network, including HEREOrlando.com, HEREStPetersburg.com, HERETallahassee.com, and HERETampa.com, we provide comprehensive, credible insights into Florida's dynamic landscape.
