The survey, conducted between March and May, came as President Donald Trump unveiled tariffs on allies and competitors alike, with especially steep rates on Chinese products.

This has fueled uncertainty as companies try to adjust supply chains, such as by diversifying away from China or deepening localization.

"While 82 percent of companies reported profits in 2024, fewer than half are optimistic about the future, reflecting concerns over tariffs, deflation, and policy uncertainty," said the US-China Business Council (USCBC) in its 2025 member survey.

About 40 percent of firms surveyed reported "negative effects from US export control policies," the report said, noting the rise in this proportion signals export curbs are impacting firms beyond the semiconductor industry.

Companies cited issues such as lost sales to international or Chinese competitors, severed customer ties and reputational damage in China "due to the intensifying perception that US firms are unreliable suppliers," the report said.

The USCBC warned of Chinese tech firms' growing capabilities eroding the competitiveness of US businesses over time.

But despite challenges, "the ability to operate in China's fiercely competitive market remains non-negotiable for American companies," USCBC President Sean Stein said.

Nearly all firms said they cannot remain globally competitive without their China operations.

Meanwhile, companies continue to report declining market share as Beijing's industrial policies boost domestic firms, the survey said.

"32 percent of companies reported losing market share in China over the last three years, while nearly 70 percent are concerned about losing market share in the next five years," the council said.

The USCBC represents some 270 American companies that do business with China. This year's survey involved a pool of 130 member firms.