China is trying to move up the manufacturing value chain through its Made in China 2025 plan to boost manufacturing innovation and promote homegrown products. Western firms have been wary of this, contending that it reduces competitiveness of foreign firms in China by providing government assistance to Chinese firms.
While the US business community appears more confident about China's further opening-up to foreign investment, it is equally important that the country improves policy enforcement so that foreign companies can truly understand and benefit from China's reform and opening-up.
Zarit said U.S. companies do not want to see a trade war develop because it would obviously undermine their business in China.
Sentiment among U.S. businesses in China rebounded last year as worries eased over potential for rising tensions under President Donald Trump, though concerns remained about rising labor costs and the regulatory environment, according to an annual survey by a major American business association.