103.95103.95103.95103.95 103.95103.95103.95103.95103.95 103.95103.95103.95103.95103.95103.95166213126476.40103.95103.95103.95103.95103.95103.95 103.95103.95103.95103.95103.95103.95103.95103.95103.95103.95103.95 103.95103.95103.95103.95103.95103.95166103.95103.95103.95103.95 123.02183.972729.72682648.2938103.95103.95103.95103.95103.95103.95103.95166103.95103.95103.95103.95103.95103.95 103.95103.95103.95103.95103.95103.95103.95103.95103.95166 CHINABUSINESSREPORT THEAMERICANCHAMBEROFCOMMERCEINSHANGHAI 213 103.95 166 213 12647160.34.095 10132.694576.40 103.95 103.95 103.95 166 103.95 103.95 462361100137.98537.2939 1879327180634.925109.2839 103.95 103.95 166 103.954623610110738.9357.2939 103.95 1879327864210190.238.9359 103.9 103.95 166 103.95 462130631.09157837.29113093.95 187932170836.9452109.2831903.9 103.95 126476.40 103.95 103.95 103.95 103.95 103.9 103.95 103.95 103.95 103.9 462361017837.2931903.95 1879130237.985642109.2180339.95 103.95 103.9 103.95 462361017837.2939 1031.897593278642109.2839 103.95 110033..9955 103.9 103.95 103.95 166 21312647 103.95 462361017837.2939 18793278642109.2839 103.95 103.9 103.95 103.95 166 103.95 103.95 123.02183.972729.726 82648.2938 103.95 103.9 103.95 103.95 103.95 166 103.95 103.95 103.95 103.9 103.95 103.95 103.95 166 103.9 103.95 103.95 103.95 103.9 103.95 103.95 18793278642109.2839 103.95 103.95126476.40 103.9 103.95 103.95 103.95 103.9 103.95166 213103.95 18793278642109.2839 103.95 103.95 462361017837.293 103.95 103.95 103.9 103.95 103.95 166 103.95 18793278642109.2839 103.95 46120336.915017837.2939 103.9 103.95 166 103.95 123.02183.9710237.9259.72682648.2938 103.95 1034.6925361017837.2939 110033..9955 166 103.95 103.95 103.95 110033..9955 103.9 103.95 103.95126476.40 103.95 103.95 103.95 103.95 103.9516610231.395 166103.95 126476.40 103.95 103.95 103.95 103.95 110033..9955 110033..9955 46120336.190517837.2939 103.95 103.95 187932170836.9452109.2831111190033..99555 11004336..99255361017837.2939103.95 18793278642109.2839 103.95 103.95 103.95 10136.965 103.95 103.95 110033..9955 103.95 103.95 103.95 126476.40 166 126417063.4.905 103.95 103.95 103.95 103.95 1879113002337..896542109.281111300009333....99995555 112033.0.925183.9710237.2995.72682648. 110033..9955 103.95 103.95 103.95 103.95 462361017837.2939 103.95 103.95 103.95 103.95 103.95 103.95 166 166 166 213 1110033..9955 111002336..4997556.40 110033..9955 103.95 110033..9955 61017180337.9.25939 166 103.95 110033..9955 103.95 110033..9955 103.95 110033..9955 103.95 103.95 103.95 103.95 18793278642109.2839 126476.40 103.95 103.95 103.95 103.95 103.95 103.95 103.95 103.95 103.95 103.95 103.95 2023 AboutAmChamShanghai TheAmericanChamberofCommerceinShanghai(AmChamShanghai),knownasthe"VoiceofAmericanBusiness"inChina,isoneofthelargestAmericanChambersintheAsiaPacificregion.Foundedin1915,AmChamShanghaiwasthethirdAmericanChamberestablishedoutsidetheUnitedStates.Asanon-profit,non-partisanbusinessorganization,AmChamShanghaiiscommittedtotheprinciplesoffreetrade,openmarkets,privateenterpriseandtheunrestrictedflowofinformation. AmChamShanghai’smissionistoenablethesuccessofourmembersandstrengthenUS-Chinacommercialtiesthroughourroleasanot-for-profitserviceproviderofhigh-qualitybusinessresourcesandsupport,policyadvocacyandrelationship-buildingopportunities. Findusonlineatwww.amcham-shanghai.org Acknowledgements AmChamShanghaiwouldliketothankallsurveyparticipantsandbusinessexecutiveswhoprovidedinputforthisreport. ReportAuthors:RachelRapaport,IanDriscoll Contributors:JessieNiu,JasonWang,QinlyWu,YuliaYou,ChengqiLiSurveypartners:JeffYuan,TigerShan,JianLi,JunJin,JiaXu,TobyZhang, JundaLin,HuchuXu,JasonWang,JingyuCai,HelenXu,SharonSong,JennyWang Designer:MickeyZhouatSnapPrinting CHAMBERMESSAGE 2023wassupposedtobetheyearinvestorconfidenceandoptimismbouncedbackafteryearsofCoviddisruptionsandre-strictions.Accordingtoour2023surveyofUSbusinessesinChina,however,thereboundhasnotmaterializedandbusinesssentimenthascontinuedtodeteriorate.Whilethedetailsvarybysector,thetrendsareclear:geopoliticaltensions,China’sworseningbusinessenvironment,anddoubtsaboutthecountry’seconomicrecoveryaredepressingoptimismandshapinghowcompaniesoperateinChina. 2022wasadifficultyearforbusinesses.Lessthanhalfoftherespondentssaw2022revenueincreaseover2021,thelowestpercentageinover15years;just68%ofrespondentsreportedbeingprofitablein2022,thelowestpercentageonrecord;andonly37%sawtheiroperatingmarginsincreaseoverthepreviousyear,thelowestratesince2008. Optimismcontinuestofall.Lastyear’ssurveyregisteredrecord-lowlevelsofoptimismamongUScompaniesinChina.Thisyear,thenumberdroppedevenfurther,withonly52%ofcompaniesreportingthattheyareoptimisticaboutthebusinessout-lookinthenextfiveyears.Reflectingthis,only17%reportedthatChinawastheirheadquarters’numberoneinvestmentdesti-nationglobally,downfrom27%in2021.Amongcompaniesreportingplanstocurbinvestment,70%blameduncertaintyaboutUS-Chinatensions,49%citedslowinggrowthinChina,and48%expressedconcernoverfutureChinesecommercialpolicies. Companie