American businesses optimistic about Chinese market

As trade ties between China and the United States run deep and closely intertwined, many American companies are reasonably optimistic about the Chinese market and plan to increase investment, Craig Allen, President of the U.S.-China Business Council (USCBC) told People’s Daily.

Photo taken on April 25, 2022, shows that more than 200 new vehicles manufactured by U.S. carmaker Tesla’s Shanghai Gigafactory are transported to Yantai Port, east China’s Shandong province. (People’s Daily Online/Tang Ke)

Win-win cooperation between China and the U.S. plays a key role in driving world economic recovery from the COVID-19 pandemic. Many voices have been heard from the American business community urging its government to cooperate with China instead of decoupling so that the two countries could work together for a more peaceful and prosperous world.

Founded in 1973, the USCBC has actively served as a trade bridge between the two countries, which has attracted more than 200 U.S. member companies doing business in China, including many of the world’s iconic brands. The membership is still growing.

Aerial photo taken on March 28, 2022, shows cranes are carrying out container loading operations orderly in Jinhua city, east China’s Zhejiang province. (People’s Daily Online/Hu Xiaofei)

Most of the USCBC members have invested in China for decades with a long vision and commitment, as China remains one of the most essential markets in the world. According to a 2021 survey conducted by USCBC among 107 U.S. firms operating in China, up to 95 percent of the respondents said they were profitable in the past year, and over 40 percent said they will increase investments.

China continues efforts to deepen reform and opening up, optimizing an active and friendly business environment for foreign investors. “American businesses that we talk to are reasonably optimistic about the future,” Allen added.

It’s the most impressive accomplishment of China to lift hundreds of millions of people out of poverty and improve their quality of life, Allen marked, looking forward to more high-quality goods and services in the country with the continuous improvement of living standards.

China’s trade with the U.S. in 2021 reached a record $755.6 billion, up nearly 30 percent year-on-year. Another record shows that the U.S. goods exports to China increased by 21 percent to $149 billion, said a USCBC recent report.

2021 saw strong trade ties between China and the U.S. Agricultural exports and a big boost to the economies of the U.S. states with large agricultural sectors. 

All 50 U.S. states exported goods and services to China and benefited from the 858,000-strong American jobs supported by these exports, Allen said. Greater stability can bring more opportunities to businesses and people in both countries.

Imposing tariffs and decoupling from China are not good for the country, for the U.S., and for the world, Allen said, stressing the positive aspects of economic globalization.

“We should reject trade blocs and spheres of influence in favor of enhancing the positive aspects of globalization that have improved standards of living for billions of people over the last several decades,” Allen said. “The world needs China and the U.S. to play a positive role in continuing this contribution to a global public good.”