91% companies surveyed will not decouple from Chinese market: AmCham South China report

91% of companies surveyed by the American Chamber of Commerce in South China (AmCham South China) report no plans to decouple from the Chinese market despite political uncertainties and ongoing US-China trade tensions, according to the chamber's latest annual white paper released on February 26.

Dr. Harley Seyedin, Chairman and President of AmCham South China, stated, "Businesses are increasing their commitments in China to secure a stronger foothold in this critical market. The reinvestment surge signals confidence in China's future, and their hope for increased US-China cooperation."

Over two-thirds of companies plan to reinvest in China in 2025

The report reveals China's enduring appeal to global investors: 

39% of surveyed companies rank China as their top investment destination, while 58%include it in their top three priorities.

73% of participants reported positive or very positive overall returns on investment in China in 2024, with 39% enjoying a higher return in China than in other global markets.

In light of the profits gained and confidence in future growth, 76% of the companies plan to reinvest in China in 2025, with 77% of these companies budgeting under USD 10 million and 6% allocating over USD 250 million.

It is estimated that member companies of AmCham South China have set aside a total of USD 14.59 billion from profits in China to reinvest over the next three to five years, a surge of 33.18% compared to the previous reinvestment figure.

This reflects China's latest efforts to encourage foreign investment, including a 20-point action plan to expand market access and streamline regulations released last week.

Business environment and opportunities in GBA appeal strongly to investors

For foreign businesses and investors, the appeal of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) market is evident, as Guangzhou has been ranked as the top investment destination in China for eight consecutive years, followed by Shenzhen, Shanghai, and Beijing, reflecting the strong business environment and economic opportunities in South China.

Guangdong's push for "new industrialization"—upgrading traditional industries while advancing AI, robotics, and green technologies—was highlighted at its 2024 High-Quality Development Conference in early February.

William Huang, Managing Partner of EY China South, told GDToday that he believes Guangdong is building a more internationally competitive modern industrial system. Enterprises in Guangdong can focus on industrial development opportunities that combine advanced manufacturing with the digital economy, such as AI and advanced manufacturing. Additionally, the opportunities for green and low-carbon biomedicine and future industries such as robotics and the low-altitude economy are also worthy of attention.

Huang also noted that Guangdong enjoys a business-friendly infrastructure, including leading intellectual property rights protections, efficient regulatory frameworks and transportation facilities such as the newly operational Shenzhen-Zhongshan Link (a cross-sea megaproject).