NEW YORK, Aug. 10, 2020 /PRNewswire/ -- China General Chamber of Commerce – USA (CGCC) and CGCC Foundation today released its 2020 Annual Business Survey Report on Chinese Enterprises in the U.S. Conducted in partnership with PwC, the survey found that over 50% of Chinese companies operating in the U.S. have been adversely affected by the escalating anti-China rhetoric in recent months, with 36% of those companies citing that tensions led to financial losses. Another challenge Chinese companies face in the U.S. market is barriers on immigration, which 42% of respondents cited as key area of concern for future growth. This has been exacerbated by the COVID-19 pandemic, which has also contributed to an uncertain market environment. Companies almost unanimously (90%) said that their financial performance has been negatively impacted by COVID-19, of which 50% cite the impact to be severe.
However, despite these complex issues and the ongoing uncertainty, Chinese companies continue to be committed to the U.S. market, with 60% of those surveyed stating that their investments in America remains the same. They are also optimistic about the market recovery in the U.S., with more than half (55%) of those surveyed expecting the economy to rebound from COVID-19 within the next year.
Xu Chen, Chairman of the CGCC and President of Bank of China USA, commented, "As of March 2020, our Chinese member companies have invested over $123 billion in the U.S. economy, resulting in job creation and economic growth in the U.S. market." He added, "Since the CGCC was founded 15 years ago, the organization has been striving to create opportunities in growing Chinese investments and facilitate Chinese brands in the U.S. As the uncertainty around U.S.-China relations and the COVID-19 outbreak continues, the CGCC stands ready to support both the business community and the two governments as they embark on the next phase of their relationship."
Now in its seventh year, the survey assessed around 200 Chinese enterprises in the U.S., looking at impact of U.S.-China relations on business operations, their outlook on the U.S. market over the next two years and the anticipated difficulties.
CGCC will hold a panel featuring speakers from U.S.-China Business Council, American Chamber Commerce of China, Wanxiang American Corporation and Lennar International on August 12 at 2pm to discuss the findings in further detail.