AmCham South China report: Shenzhen 2nd most preferred investment destination

Shenzhen is the second most favored city on the Chinese mainland for investment, following Guangzhou and followed by Shanghai and Beijing, according to the 2025 Special Report on the State of Business in South China released by the American Chamber of Commerce in South China (AmCham South China) in Guangzhou on Feb. 26.

Other mainland cities such as Dongguan, Foshan, Xiamen and Chengdu are also emerging as favorable choices for investment. In terms of the most attractive free trade zones in South China, 40% of the surveyed companies express their interest in setting up new offices or facilities in free trade zones in South China. The Nansha Area of Guangzhou enjoys the highest popularity, followed by Qianhai and Shekou areas of Shenzhen and Hengqin New Area of Zhuhai.

The 208-page bilingual report provides a comprehensive and quantitative analysis of the business community and valuable insights into the development trends in South China. This year, 316 companies were surveyed for the report which was conducted from Oct. 11 to Dec. 23, 2024, according to AmCham South China. The companies come from a broad range of sectors, with 34% engaged in primary and secondary sectors, 26% in consumption products and services, and 35% in professional services.

According to the report, 76% of the surveyed companies plan to reinvest in China in 2025. Notably, 74% of American companies have reinvestment plans for the upcoming year, an 11% increase compared with the number in 2023. A sizeable number of the participating companies have budgeted for reinvestment in China in 2025 under US$10 million, accounting for 77% of the total. A notable 6% have allocated over US$250 million for reinvestment plans in the coming year. It is estimated that member companies have set aside a total of US$14.59 billion from profits in China to reinvest over the next three to five years to expand existing operations and capture additional market share, a surge of 33.18% compared to the previous reinvestment figure.

“Businesses are increasing their commitments in China to secure a stronger foothold in this critical market. The reinvestment surge signals confidence in China’s future, and their hope for U.S.-China increased cooperation,” Dr. Harley Seyedin, chairman and president of AmCham South China, observed.

As per the report, the negative effects of both U.S. and Chinese tariffs on the companies studied have been somewhat alleviated. “Many companies have found ways to mitigate the impact through supply chain adjustments, strategic sourcing, or absorbing some of the tariff costs,” the report says.

Dr. Seydin remarked, “American companies have long recognized the importance of the strong economic relationship between the two countries, and they remain committed to the mutual benefits of innovation, job creation, and cultural exchange that this partnership fosters. It is essential that both governments work together to create a more predictable and supportive trade environment where American businesses can continue to thrive and contribute to the long-term economic growth of both countries.”