Decoupling? U.S. companies keep betting on China, report finds

Consumers experience the iPhone 17 series at Apple Jing'an in Shanghai. (Photo/Wang Chu)

The U.S.-China Business Council (USCBC) released its 2026 Member Survey, revealing compelling insights.

Eighty percent of surveyed American companies regard the Chinese market as either "very important" or "important" to their global competitiveness, a notable increase from 66 percent in 2025.

Moreover, 95% asserted that their Chinese operations are "integral" to their global market edge.

This aligns with an earlier report issued by the American Chamber of Commerce in South China, which found that 75 percent of U.S. firms plan to reinvest in China throughout 2026.

These results underscore a crucial truth: For American businesses, the Chinese market is not a replaceable side business -- it is a strategic pillar essential to their global performance. Against this reality, the political narrative of economic "decoupling" remains disconnected from where companies are placing their investments.

Four core strengths explain China's enduring and irreplaceable appeal for U.S. corporations.

Photo shows a Tesla outlet in north China's Tianjin municipality. (Photo/Tang Ke)

First, massive scale ensures unparalleled market opportunity. Multinational corporations deploy capital globally around comparative advantage. Tesla's Shanghai Gigafactory delivers over half its global production capacity and stands as its largest international export center. Meanwhile, Apple draws significant profits from China through both sales and industrial presence. Consumer leaders like Nike and Walmart similarly depend on China for substantial revenue.

With over 1.4 billion people -- including more than 400 million middle-class consumers -- and steady economic growth, China remains the world's most promising consumer market and a resilient engine of global development. Exiting China would weaken American companies' economies of scale and peel away a key source of profitability.

Second, a comprehensive industrial ecosystem enables unparalleled efficiency. China is unique, globally, in possessing all industrial categories designated by the United Nations -- spanning 41 major industrial categories, 207 medium categories, and 666 subcategories. Its advanced infrastructure and mature supply chains enable U.S. firms to reduce costs, shorten lead times, and maintain robust operational performance.

Despite supply chain pressures, more than 80 percent of U.S. businesses in China turn a profit. The reason is clear: China offers competitive advantages -- speed to market, consolidated logistics, and integrated industrial networks -- that cannot be replicated elsewhere at scale. Alternative bases or relocation efforts would sacrifice efficiency without securing comparable capacity.

Third, China's innovative ecosystem anchors market evolution. According to the World Intellectual Property Organization's Global Innovation Index 2025, China ranks 10th worldwide -- one of the fastest-rising innovators over the decade. Its openness to new technologies, rapid consumer adoption, and scalability make it an indispensable testing ground for innovation.

A cargo vessel departs from Nanjing, east China's Jiangsu province for Houston, the United States, June 5, 2026. (Photo/Fei Bojun)

This innovation mutuality shapes key industries. For example, where the U.S. leads in AI models, China excels in hardware, energy efficiency, and large-scale applications. U.S. AI advancement hinges on Chinese talent, markets, and template infrastructure. Companies routinely blend expertise from their U.S. laboratories with localization teams in China to develop globally scalable products.

China also accounts for more than 60 percent of the global market share in the "new trio" of exports -- electric vehicles, lithium-ion batteries, and solar cells. Its abundant renewable energy resources further provide solid support for computing power infrastructure.

Through a model that combines foundational technologies, global ecosystems, and industry expertise, American companies are able to pursue collaborative innovation in China through "local R&D and local application." In doing so, they not only generate profits but also refine technologies in the Chinese market before exporting successful experiences and products to the rest of the world.

Fourth, a more stable outlook is boosting business confidence. The concept of building a constructive China-U.S. relationship of strategic stability has provided a new framework for bilateral ties, with cooperation as the mainstay, competition within proper limits, manageable differences, and expectable peace.

Newly established dialogue mechanisms, including the China-U.S. boards of trade and investment, have further reassured American businesses.

The U.S. business community has already voted with its investments. For many American companies, "In China, for the world" is not a slogan but a practical choice for maintaining their global competitiveness.

(Wang Zhimin is a researcher at the Academy of China Open Economy Studies at the University of International Business and Economics.)