China US Photo: GT

Despite an unprecedented downturn in US-China relations during the COVID-19 pandemic, US businesses are not leaving the Chinese market, one of the world's largest, a report from the US-China Business Council (USCBC) showed. 

Five-year business outlook projections from US companies doing business in China are bullish, with nearly 70 percent expressing optimism about the market's commercial prospects and 87 percent reporting that they have no plans to shift production out of China, according to the USCBC report released on Tuesday (US time). 

USCBC is a trade group representing more than 200 businesses including global brands like Apple, Boeing and Qualcomm. 

But it noted that there is diminishing optimism in the short to medium-term prospects of the Chinese market, with 25 percent of member companies having reduced or stopped planned investment in China in the last year. 

The foremost reasons cited were increased costs, uncertainties from US-China tensions and uncertainties stemming from COVID-19.

Some 88 percent of respondents held a positive or somewhat positive view of the phase one trade deal, with companies seeing the fruits of the agreement, particularly the market openings, according to the report.

China remains a magnet for foreign investment as its doors open wider and its business environment continues to improve, Chinese Commerce Minister Zhong Shan said over the weekend.

"I don't think smart foreign investors will give up on the Chinese market," said Zhong, pointing to the country's huge market with 1.4 billion consumers, a better business environment and complete industrial chain.

China will continue to improve its business environment and protect intellectual property rights, Zhong noted.

The number of projects in China with investment above $100 million hit 320 during the first half of this year, when the pandemic was wreaking havoc on the global economy, showing that the country still holds great appeal to foreign investors, according to Zhong.