Nearly half of American businesses operating in China have rerouted their planned investments to other regions in the past year, the greatest proportion since records began, according to a survey released Wednesday by the American Chamber of Commerce in Shanghai.
AmCham Shanghai found that 47% of its member companies — which range from Apple and Ford to Honeywell, Meta, and Tesla — have shifted investment originally earmarked for China to destinations largely in Southeast Asia. The survey, conducted between May 19 and June 20 this year, underscores mounting frustration and uncertainty as U.S.-China trade tensions persist.
The report comes in the wake of renewed dispute between Washington and Beijing, although a truce struck last month temporarily suspended some tariffs and extended ongoing negotiations by 90 days through mid-November. However, Eric Zheng, AmCham Shanghai President, stressed that such a brief period does little to resolve longer-term supply chain planning issues facing multinationals.
Jeffrey Lehman, chair of AmCham Shanghai, noted that U.S. firms are squeezed not only by American tariffs imposed on Chinese imports, but also by China’s retaliatory measures. In many cases, the components required for manufacturing in China are sourced from the U.S., further entangling companies in the trade dispute.
The survey also highlighted a marked decline in optimism regarding the business landscape in China. Outlook for the next five years among U.S. firms has fallen to its lowest reading for the fourth consecutive year, reflecting deepening concerns over China’s economic slowdown and intensifying competition from local Chinese companies.
While multinational companies believe they still lead Chinese peers in product quality and innovation, growing numbers of respondents concede that domestic competitors have gained the upper hand in market reach and adoption of artificial intelligence.
Despite these setbacks, some members noted moderate improvements in China’s regulatory environment, though most say these changes have yet to outweigh broader strategic uncertainties.
Mr. Kobsak Pootrakool, Vice President of the Thai Listed Companies Association, stressed at the ACMA Business Forum 2025: “Now or Never – Breaking Thailand’s Stagnation,” that Thailand must make haste and prepare for a new wave of growth.
He warned that Thailand’s economic core is weakening, eroded by geopolitical challenges. The advantages once gained from Japanese business relocations are fading, leaving Thailand vulnerable to shifting global trends in AI, quantum computing, and humanoid robotics.
If Thailand fails to adapt to this fast-changing global environment, the country risks being left behind. With investment flows increasingly redirected from the U.S., India, and China, he noted that ASEAN—rather than Thailand—may become the preferred destination for capital.
According to the Board of Investment of Thailand’s data, applications for investment promotion are at a record high this year, particularly in sectors such as electric vehicles (EVs) and BCG (biotech). The inflows are evident from several reports that funds are now withdrawing from China at a transcendent pace and amount. However, he emphasized that Thailand must transform into an international business hub to attract multinational corporations and new unicorns.
With global economic power increasingly divided between the U.S. and China, each country is pressuring others to take sides. Mr. Kobsak suggested that Thailand should position itself as a neutral middleman, welcoming both U.S. and Chinese investment. By leveraging external conflicts, Thailand could establish itself as a strategic center and lead change in the region.
