Soaring costs, economic uncertainty contributing to AmCham estimate

US companies in China expect their business in the country to experience slower growth this year as they tackle a macroeconomic slowdown and soaring operating costs.

That's the key finding of a poll conducted by the American Chamber of Commerce in China, in which more than three quarters of surveyed companies continue to predict growth in revenue this year, but at a slower pace than in 2011.

A total of 390 companies in industries including services, manufacturing and high-tech participated in the chamber's annual business climate survey.

The survey showed that 43 percent of companies expect their sales to rise by more than 11 percent. This was down 15 percentage points compared with the previous year.

This is a result of companies scaling back their investment and growth plans in China. Only 20 percent of the surveyed companies expect China to be their top investment destination this year, compared with 31 percent in 2011.

The faltering economic environment, both in China and globally, were the top two factors that weakened companies' confidence, while 46 percent cited an economic slowdown in China as their primary concern, up 15 percentage points from 2011.

And against an uncertain global backdrop dominated by the eurozone crisis and a downgrade in the US credit rating, 40 percent viewed China as less immune to global economic instability.

However, US firms remain committed to China, with 78 percent listing the nation as among the top three priorities in their investment portfolio.

Besides, the "in China for China" trend continues to be strong among US companies. Nearly two-thirds of the companies said that they produce goods or services for the China market.