Policy Priorities 2024

AmCham China’s 2024 Policy Priorities reflect the opinions of the Chamber’s membership. These insights are derived from discussions during our February 5, 2024, Policy Priorities Townhall and are supported by analysis of our annual Business Climate Survey and American Business in China White Paper.

Click the download button below for the 2024 Policy Priorities!

Introduction 

In 2023, the foreign business community in China breathed a sigh of relief. From the ending of the last tranche of COVID-19 control measures to the resumption of high-level talks between the governments of the US and China, the bilateral relationship experienced a warming trend. Nevertheless, respondents to our 2024 Business Climate Survey (BCS) cited “Rising tensions in US-China relations” as their top challenge for the fourth consecutive year.

To continue its economic growth trajectory, China needs to remain consistent in its pursuit of economic opening and reform by allowing foreign organizations, including American producers and service providers, to compete on a level playing field with domestic firms. We encourage the Chinese government to continue engaging with the foreign business community to enhance China’s business-oriented policies.

Throughout the year, China has made strides in formalizing its position on the importance of foreign-invested enterprises (FIEs). In August, China’s State Council issued Opinions of the State Council on Further Optimizing the Foreign Investment Environment and Intensifying Efforts to Attract Foreign Investment. To improve confidence and certainty among FIEs, the Opinions, also known as the “24 points”, signal to global business leaders that China is actively looking at ways to strengthen its reputation as a leading nation in which to invest for the long-term. The introduction of the New 24 Measures, issued by the State Council on March 19, 2024, highlights China’s efforts to reassure and attract foreign investment amid global shifts and to solidify its position as a key player in the international market.

While the Chinese government has introduced initiatives to encourage foreign investment, our members’ actual experience suggests a more nuanced situation. Even though there has been talk of creating a more welcome environment for international investors, foreign business has reason for skepticism based on history, and the increase in foreign businesses’ direct investment into China in 2023 was modest, marking its slowest pace since the early 1990s. The inconsistency in policy over time and the discrepancy between stated policies and their implementation has led to a cautious approach among investors. Foreign investors are finding that the anticipated economic reforms and efforts to liberalize are unfolding at a slow pace, which has tempered enthusiasm and confidence over the prospects of the Chinese market for foreign investment.

Concern over the sustainability of the foreign investment and broader economic reforms also affects the enthusiasm of our members to invest in China. They have seen how abrupt changes in policy or in the regional security environment can impact economic prospects and the security of investments, and naturally have concerns about their medium-to-long term prospects in China as well.

To US government policymakers, we welcome the opportunity to work closely with policymakers and are pleased to offer a comprehensive overview of the present circumstances and operational realities faced by US companies in China. We will continue to pinpoint and convey fair and durable opportunities to our member organizations.

We recognize that there are significant areas of contention in the US-China relationship, many of which have no easy or short-term prospects for resolution. Despite these frictions, the economic prosperity enjoyed by both countries through having American companies operate and invest in China serves as a stabilizing force in the bilateral relationship. The ongoing promotion and advancement of American entities in China constitute positive signals that governments on both sides of the Pacific can take pride in.

AmCham China’s 2024 Policy Priorities

2023 was marked by improved bilateral relations and the resumption of high-level dialogue. From the Chinese government’s decision to open borders and the resumption of direct people-to-people exchanges, to the initiation of scores of US-China working groups, the year culminated in a highly anticipated Presidential Summit in San Francisco. AmCham China applauds the strong efforts made by both governments to reengage following several years of distance aggravated by the COVID-19 pandemic.

This February, as part of our advocacy efforts, AmCham China members gathered in Beijing to discuss common challenges and put forward their ideas for this year’s key policy priorities. Formulated directly as seen from the perspectives of our members, these priorities are leveraged to guide and support our engagement and advocacy efforts with both the US and Chinese governments, policymakers, media, and other key stakeholders over the next 12 months.

In 2024, our Policy Priorities are:
Priority One: Encourage high-level communication and dialogue to foster mutual understanding.
Priority Two: Strive for consistent and clear policy-making and implementation to support investment decisions.
Priority Three: Build efficient and equal market access to sustain the commitment of foreign-invested enterprises (FIEs) to the Chinese market.

(Please see the download link above to access the complete 2024 Policy Priorities document)