CGCC Releases 2021 Annual Business Survey Report on Chinese Enterprises in the US
China General Chamber of Commerce – USA (CGCC) and CGCC Foundation today released the 2021 Annual Business Survey Report on Chinese Enterprises in the US, which was conducted with support from Ernst & Young LLP (EY US).
In its eighth consecutive year, the report details the experiences and sentiments of 183 Chinese companies in the US based on survey responses from the companies, as well as interviews with a number of select executives conducted in early 2021.
According to the results of the survey, business operations and investments of Chinese companies in the US were severely challenged in 2020 due to pandemic-related disruptions and uncertainties in US-China relations. Despite the uncertainties, 65% of surveyed companies reported reinvesting profits in their US operations, a 15% increase from last year. Chinese companies continue to view the US as an investment priority and remain firmly committed to the market in the long term, according to the survey’s findings.
Compared with previous years, surveyed companies expressed greater optimism about the direction of the bilateral relationship and economic cooperation going forward, in anticipation of a more predictable and stable US business environment. More businesses (39%) expect improvements than those (25%) expecting relations to deteriorate, compared with 33% and 30% in 2020 and 37% and 34% in 2019, respectively. Interviewed executives highlighted that their companies are actively monitoring bilateral relations and are seeking to play a role in building strong, positive relations – for example, through continuously investing in elevating their brands and raising awareness.
Xu Chen, Chairman of CGCC, President and CEO of Bank of China USA, commented, “While tensions in US-China relations in recent years, alongside the negative effects of COVID-19, have impacted our members’ views on the US business environment and affected their confidence, it is exciting to see the clear optimism and resilience of Chinese companies. Our members have generally responded well to the pandemic’s dual role as an accelerator of transformation and amplifier of disruptive forces.”
Shau Zhang, EY US Partner and Americas China Overseas Investment Network Leader, added, “It’s clear from the survey that these companies are cautiously optimistic about the overall US business environment. In order to sustain growth in the US market, many of these organizations indicated they are prioritizing efforts to strengthen their compliance to navigate through the evolving legal and regulatory environment in the US, and continuing to support local communities in which they operate.”
As businesses from both the US and China still hold deep commercial interests in investing in each other’s economies, CGCC remains committed to carrying out more constructive engagement and dialogues, building relationships, and achieving great synergies between US and Chin businesses to encourage better understanding and cooperation on both sides.
Click here to read the full report.
Founded in 2005, China General Chamber of Commerce – USA (CGCC) has been recognized as the largest and most impactful nonprofit organization representing Chinese enterprises in the US. As an independent, nonpartisan, nongovernmental chamber of commerce, CGCC provides a broad range of programs, services, and resources to over a thousand multinational members across the US, with a mission to create value, generate economic growth, and enhance cooperation between the US and Chinese business communities.
About CGCC Foundation
Established in 2014, CGCC Foundation is a 501(c)(3) tax-exempt organization. The mission of CGCC Foundation is to deepen mutual understanding and cooperation between the United States and China through research, public charity, and engagement in economic, cultural, and social exchanges.
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