US Businesses in China Freeze New Investment Amid Tariff War, Geopolitical Tension: Survey

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US Businesses in China Freeze New Investment Amid Tariff War, Geopolitical Tension: Survey
US Businesses in China Freeze New Investment Amid Tariff War, Geopolitical Tension: Survey

A truck drives past containers at the Port of Ningbo-Zhoushan in Ningbo, in China’s eastern Zhejiang Province, on May 28, 2025. Hector RETAMAL / AFP via Getty Images

A record-high proportion of U.S. companies in China have frozen new investment plans, with tariffs and U.S.–China relations among their top concerns, a new survey has found.

Other top concerns include the ruling Chinese Communist Party’s (CCP’s) tight regulatory controls, such as export restrictions, sanctions, investment screenings; Chinese industrial policies that favor domestic companies; China’s slowing economic growth and lack of domestic demand; the CCP’s opaque business environment; and industrial overcapacity that is affecting a broader range of sectors.

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