US companies in China are more optimistic about profits this year even as the economy weakens, reports Caixin.

The American Chamber of Commerce in China's 2026 survey found 52 per cent of members expect to be profitable, up six points from 2025. Nearly 370 firms took part in the poll.

While earnings expectations improved, weakening fundamentals have overtaken US-China relations as the top concern for the first time in the survey's 20-year history.

About 73 per cent of respondents expect revenues to grow or remain stable. The services sector showed the strongest recovery, with profitable firms rising 15 points to 61 per cent.

One-fifth of companies said their profit margins in China exceeded their global average, the best result since 2022.