US-China Business Council: China Is Not Just a Crucial Market, but Also a Vital Source of Global Industrial Innovation and Competition
The US-China Business Council (USCBC) released its annual member survey on the 10th, revealing that China continues to play a pivotal role in the global strategy of American businesses. A striking 95% of surveyed companies stated that maintaining their presence in China is "important" or "very important" for sustaining global competitiveness—up from 91% last year and reaching a recent high.
The survey included 175 U.S. companies and was conducted between February and March this year.
USCBC Chairman Stein emphasized that many multinational corporations have come to recognize that China is not merely a significant market, but also a critical source of global industrial innovation and competition.
He said: "Large, globally competitive enterprises have realized that you can learn a great deal from China and from Chinese competitors. American and global companies stay in China not just for the Chinese market, but because they can gain insights into what’s happening there—the new developments unfolding in real time."
The survey found that 92% of respondents reported their China operations remained profitable—up 10 percentage points from last year and marking the highest level since 2021.
U.S. companies are particularly concerned about key raw materials required in aerospace, defense, and high-tech industries. Stein noted that securing rare earth elements such as samarium-cobalt magnets, high-temperature aerospace materials, and yttrium remains highly challenging at present.
USCBC Vice President Sullivan added that the issue extends beyond raw rare earth minerals themselves—it includes finished products like rare earth magnets. Because China controls both mining and processing capabilities, it makes it difficult for global supply chains to disentangle from reliance on China in the short term.
U.S. export control policies have also sparked dissatisfaction among businesses.
The survey revealed that nearly half of the responding companies have been affected by U.S. export controls and sanctions, with 61% stating they lost market share to Chinese competitors—up another 5 percentage points from last year.
The report notes: "U.S. export controls were not designed to strengthen the competitiveness of American firms; instead, they are pushing buyers toward alternative sources."
The survey also found that U.S. political pressures have emerged as a new risk factor for businesses. The proportion of companies citing domestic U.S. political factors as a concern rose by 18 percentage points compared to last year, reflecting heightened regulatory and reputational risks.
Overall, China remains one of the world’s largest manufacturing hubs, an essential consumer market, and a key testing ground for new technologies.
Original article: toutiao.com/article/1867747722393672/
Disclaimer: This article reflects the personal views of the author