US Businesses: China Crucial for Global Competitiveness

US Firms Find China Critical for Global Edge

Despite decoupling rhetoric, China remains a crucial market for US businesses, with 95% of respondents in a US-China Business Council survey deeming it vital for global competitiveness.

US companies are not withdrawing from China, instead leveraging their operations there to enhance global competitiveness and refine their skills.

Key Survey Insights

• 95 percent of US-China Business Council members consider China “somewhat to very important” for staying globally competitive.
• China’s vast market, growing role as an innovation hub, and resilient supply chains are key factors.
• Almost half of US companies apply experience gained in China to other international markets.
• Competing with Chinese companies helps Western firms hone skills and gain insights.

Bilateral Economic Cooperation Efforts

Amidst positive shifts, both the US and China recently agreed to establish trade and investment councils.

These platforms aim to manage differences, resolve disputes, and foster a more stable business environment. Discussions are set to include tariff reductions, with an agreement in principle to lower tariffs on products worth $30 billion or more on each side.

The upcoming China International Supply Chain Expo in Beijing will see US companies as the top foreign exhibitors for the fourth consecutive year, seeking industrial and supply chain collaboration.

Companies Invest, Challenges Remain

Industrial conglomerate 3M China, which considers China its largest overseas market, remains confident in the country’s opportunities.

• Over 50 percent of products 3M sells in China are manufactured locally.
• 3M China plans over 30 percent growth in new product launches compared to 2025, significantly outpacing other global markets.

However, the survey also highlighted top challenges: fragile US-China relations, China’s economy, and entrenched tariffs. Policymakers are urged to address these beyond just tariff reductions.