In light of the recently released 2026 Chinese government work report, Harley Seyedin, Chairman and President of the American Chamber of Commerce in South China (AmCham South China), shared his insights on the implications of the report. He commended the Chinese government for achieving the 2025 GDP target of 5% through diverse investment strategies.
Seyedin views the new projection of 4.5% to 5% for 2026 as a prudent move, highlighting a critical transition from rapid growth to an emphasis on innovation and technology. He believes this focus will elevate job quality and enhance consumer services by encouraging appropriate investment levels that support better employment through advancements in AI and new product development.
Reflecting this optimism, AmCham South China reports that its member companies have earmarked $13.5 billion for investment over the next three to five years, underscoring their robust confidence in the Chinese market.
Deepening reform and opening-up
Seyedin emphasized the unique advantages of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) as a prime location for American investors, particularly in high-tech sectors. Each city within the GBA offers distinct capabilities ideal for research and development, enabling companies like IBM, Cisco Systems, and Oracle to establish new business innovations tailored for the Chinese market.
China's Guangdong Province is committed to enhancing the environment for foreign direct investment (FDI), implementing measures to safeguard and promote American investments. Seyedin noted that 10 initiatives have been introduced to boost FDI, along with additional policies to protect and encourage foreign investment. These efforts, coupled with American companies' shift toward higher-value-added products and services, are expected to significantly increase foreign investment in China over the next three to five years.
Over 82% of U.S. firms remain profitable
Seyedin highlighted the resilience of American businesses, noting that over 82 percent of member companies are still profitable despite challenges during the COVID-19 pandemic. He expressed optimism for 2026, stating, "Our companies will increase their staff numbers as we collectively invest $13.5 billion to grow our market share in China."
Additionally, he pointed out that China's focus on artificial intelligence and technology innovation creates tremendous opportunities for collaboration with the U.S., which excels in AI. Last year's $130 billion in licensing agreements underscores the importance of cross-licensing to strengthen mutual technological capabilities and enhance economic ties.
Bridging bilateral relations
Looking ahead, Seyedin emphasized the chamber's role in fostering U.S.-China economic ties, especially with the APEC Economic Leaders' Meeting scheduled in Shenzhen this November. "We intend to make sure that we invite our members to be a part of it, who work with our counterparts in other countries to bring their leaders to China, to witness China's transition and what China has to offer," he stated.
He also stressed the significance of the intertwined supply chains between the U.S. and China, advocating for continued dialogue to open up markets. "We are committed to ensuring a positive relationship, allowing us to invest and leverage the opportunities generated through enhanced understanding between our two nations," Seyedin concluded.
Reporter | Xie Maishi, Hu Nan
Video | Qin Shaolong
Poster | Lai Meiya
