Inconsistent policies and their implementation, rising labor costs and data security are among the top concerns for American businesses. The survey also found that despite Chinese leaders’ insistence that Beijing welcomes foreign companies, many continue to face restricted market access. “The Chinese government says it encourages foreign direct investment, but many of our members continue to encounter barriers to investment and operations, including discriminatory policies and media campaigns that create suspicion of foreign business,” the report said. The business group welcomed an improvement in relations in 2023, capped by meetings between Chinese leader Xi Jinping and US President Joe Biden, but said the US presidential election in November hangs over the future business environment. In a recent visit to Beijing, US Treasury Secretary Janet Yellen raised concerns that potential overcapacity in Chinese industries — such as electric vehicles, steel and solar panels — could crowd out American and other foreign manufacturers. “We recognize that there are significant areas of contention in the US-China relationship, many of which are not likely to be resolved easily or in the near term,” it said. The US Chamber of Commerce in China report said that businesses see high-level engagement and communication between the two sides as the top priority. American companies operating in China reported improved profits last year, though slightly less than half expect to be profitable in 2024. Still, more members of the American Chamber said they were optimistic about growth in the Chinese economy. Among its many recommendations, the report urged China to create and implement “transparent and predictable economic policies that treat domestic and foreign entities equally.” Businesses also called on Chinese leaders to clarify and narrow the scope of the country’s Counterespionage Law to prevent it from interfering with normal business operations. The appeals follow repeated raids on foreign companies that Chinese authorities said were for national security reasons. The report also urged US officials to avoid resorting to unilateral controls that are ineffective and fail to meet national security and foreign policy objectives. Washington should work with Chinese companies to address export control concerns, such as military use of civilian technologies, before imposing sanctions, it said. The 617-page report makes hundreds of recommendations covering sectors from sports to workplace safety and rural traffic management. Overall, American companies have no plans to shift supply chains out of China, given the size and importance of its 1.4 billion-person market. But the appetite for increasing investment in China and making it a strategic focus has diminished as advantages have eroded, the report said. Read Also: Tokyo Stock Exchange opens with a gain of 0.83% (Portuguese version)