by Newley Purnell for WSJ

“HONG KONG—U.S. companies are painting the bleakest picture in decades over doing business in China as tensions between Beijing and the West are compounded by a deteriorating environment for their operations.

Just over half of 325 members surveyed by the American Chamber of Commerce in Shanghai were optimistic about their five-year business outlooks, the lowest since the survey began in 1999, the group said Tuesday. As recently as 2021, the figure stood at 78%. 

While sectors such as pharmaceuticals, legal services and retail reported slightly higher levels of optimism, they were lower in logistics, technology and management consulting because of factors such as China’s crackdown on due-diligence firms, the annual survey said.

“2023 was supposed to be the year investor confidence and optimism bounced back after years of Covid disruptions and restrictions,” the report said, before noting the rising challenges facing companies in China. 

China’s deepening economic slump is damaging the fortunes of big U.S. companies with deep roots there, with some growing increasingly pessimistic that its long-awaited postpandemic boom will materialize. 

Less than half of respondents saw their 2022 revenue increase compared with the previous year, the lowest in more than 15 years. Some 68% of respondents said they were profitable last year, the lowest rate since the survey began, while just 37% saw their operating margins grow from the previous year, the lowest since 2008…”

Continue reading at the original source, linked here.