Despite trade tensions, China's position as a leading global investment destination continues to strengthen, a recent report has shown.

According to the 2026 Special Report based on the 22nd annual State of Business in South China Study conducted by the American Chamber of Commerce in South China (AmCham South China), 45 percent of the companies studied ranked China as their top global investment priority, representing a notable 6 percentage point increase from 2024.

Revenue data further underscores this strategic emphasis: 37 percent of companies generated more than 60 percent of their global revenue from China, another 6 percentage points increase, the report said.

AmCham South China released the report in Guangzhou on Tuesday. A total of 426 companies participated in the study this year.

Commenting on the findings, AmCham South China Chairman and President Harley Seyedin noted that while profitability has moderated slightly in the near term, the broader data reflects remarkable strategic resilience. "Companies are deepening, not retreating from, their engagement in China; recognizing the scale of its market, the sophistication of its innovation ecosystem, and its long-term growth trajectory," he said.

The report showed 95 percent of participating companies reaffirm their commitment to maintaining operations in China, with not a single company reporting a complete withdrawal from the market, Seyedin emphasized at a press conference on Tuesday. Among the 28 percent that relocated a portion of their investments, 79 percent shifted less than 30 percent of their investment outside China, he added.

Looking ahead, the commitment appears to solidify further. Seventy-five percent of the companies studied plan to reinvest in China in 2026. Collectively, member companies have earmarked an estimated $13.79 billion from profits in China for reinvestment over the next three to five years. This sustained reinvestment, according to Seyedin, reflects confidence in the market's resilience and its central role in global business operations.

"The message from American businesses is clear: they are committed to long-term participation in China's growth." Seyedin continued, "Companies are reinvesting not only to expand market share, but to innovate, localize, and strengthen their integration within the Chinese economy," he said.

According to the report, business sentiment regarding the future of US-China relations has improved significantly. It shows that 39 percent of all studied companies now express a positive outlook, a substantial 14 percentage points increase from 2024.

While many companies still anticipate the possibility of continued trade tensions in 2026, there is a growing expectation that the operational disruptions will be shorter in duration and more manageable, the report found.

For the ninth consecutive year, Guangzhou, capital of Guangdong province, has been ranked the top investment destination in China, selected by 38 percent of respondents. Following closely is Shenzhen, which saw a notable gain of 6 percentage points to reach 29 percent, ahead of Shanghai (10 percent) and Beijing (5 percent), the report said.