American companies operating in China are encountering hurdles this year as they report a decrease in new investment plans and waning confidence in their profitability. The ongoing uncertainty in U.S.-China relations and the impact of President Donald Trump’s tariffs are among the primary concerns for these businesses. Additionally, challenges stem from China’s slowing economy marked by weakened domestic demand and overcapacity in local industries. The U.S.-China Business Council highlighted the rise in risks, including reputational, regulatory, and political risks for companies conducting business in China. Uncertainty persists as trade tensions continue, impacting the future investment plans of many American companies.