Despite ongoing global trade tensions, China continues to strengthen its position as one of the world’s leading investment destinations, according to a new report released by the American Chamber of Commerce in South China.
The 2026 Special Report, based on the 22nd annual State of Business in South China Study, reveals that 45% of surveyed companies ranked China as their top global investment priority, representing a 6-percentage-point increase compared to 2024. The study included responses from 426 companies and was officially released in Guangzhou on Tuesday.
Revenue data from the report further highlights China’s strategic importance for international companies. Around 37% of participating firms reported that more than 60% of their global revenue comes from China, also showing a 6-percentage-point increase compared to previous findings.
Commenting on the results, Harley Seyedin, Chairman and President of the American Chamber of Commerce in South China, said that although profitability has slightly moderated in the short term, the broader trends show strong resilience among foreign businesses.
“Companies are deepening, not retreating from, their engagement in China,” Seyedin said, noting that businesses recognize the scale of the Chinese market, its advanced innovation ecosystem, and its long-term growth potential.
The report also found that 95% of surveyed companies plan to maintain their operations in China, with no company reporting a complete withdrawal from the market. Among the 28% of companies that relocated part of their investments, nearly 79% moved less than 30% of their investment outside China, indicating only limited diversification rather than full relocation.
Looking ahead, the study shows continued confidence in China’s market. Seventy-five percent of companies plan to reinvest in China in 2026, with member companies collectively allocating approximately $13.79 billion from profits generated in China for reinvestment over the next three to five years.
Seyedin emphasized that this reinvestment reflects strong confidence in China’s economic resilience and its central role in global supply chains and innovation. “The message from American businesses is clear: they are committed to long-term participation in China’s growth,” he said, adding that companies are investing to expand market share, drive innovation, and deepen integration within the Chinese economy.
The report also indicates improving business sentiment regarding US-China relations. About 39% of companies now hold a positive outlook, representing a 14-percentage-point increase compared with 2024. Although firms still anticipate the possibility of trade tensions in 2026, many expect any operational disruptions to be shorter and more manageable.
In terms of preferred investment locations, Guangzhou has been ranked China’s top investment destination for the ninth consecutive year, chosen by 38% of respondents. It is followed by Shenzhen with 29%, ahead of Shanghai at 10% and Beijing at 5%.
The findings highlight that, despite geopolitical challenges, global companies continue to view China as a key market for long-term investment, innovation, and growth.
