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today i will share the 2024 china business environment survey report. report producer: us-china business council

although us companies' performance in china remains strong, china's economic slowdown is affecting their optimism. this year's survey added a new option on china's macroeconomics, which has become the second biggest challenge facing companies in the chinese market. the primary factor restricting companies' ability to improve profitability in china is weak domestic demand and overcapacity in china, and partly due to falling prices. the number of companies that are pessimistic about china's medium-term business prospects has reached a record high.

as china invests heavily in local innovation projects, american companies are losing market share. this year, a record high proportion of companies surveyed said their market share in china has declined, while a record low proportion of companies reported that their market share is increasing. as competition with local companies intensifies, industrial policy support, including subsidies for local companies, is also expanding.

geopolitical tensions continue to affect business relations and limit market access for u.s. companies in china. expanding u.s. export controls, sanctions, and investment reviews are undermining and sometimes severing relationships between u.s. companies and chinese customers, while china continues to erect barriers in its public procurement market, hindering market access for u.s. companies. more companies surveyed are adjusting their business operations, strategies, and supply chains in china to mitigate the impact of the increasingly tense bilateral relationship.

even if u.s. companies take steps to diversify their supply chains, the chinese market remains critical to maintaining their global competitiveness. although a larger proportion of companies surveyed this year have lowered their priority for the chinese market in the short term compared to previous years, most of the companies surveyed still regard china as a top priority in their global investment plans. at the same time, most companies said that without a business presence in china, their global competitiveness would be greatly reduced.