U.S.FirmsinChinaFaceRisingComplianceBurdens,AmChamChinaSays

AmCham China releases its 2026 American Business in China White Paper at its Government Affairs Annual Conference on April 23 in Beijing

American companies operating in China are facing mounting compliance burdens from bilateral trade measures and domestic regulations, according to the 2026 American Business in China White Paper released by the American Chamber of Commerce in China (AmCham China).

The annual report, which assesses the business environment and strategic challenges for U.S. firms in the Chinese market, highlights issues ranging from competition law, data privacy and anti-corruption compliance to customs, government procurement and high-tech export controls. The chamber called for broader solicitation of foreign business feedback in emerging fields such as artificial intelligence and fair competition review mechanisms, while urging clearer operational guidelines for cross-border data transfers, cybersecurity and anti-corruption compliance.

Government procurement and national treatment remain key priorities. The report welcomed the September 2025 policy document, which fills execution gaps and provides a clear definition of domestic products. However, it urged authorities to ensure that goods manufactured by foreign companies within China receive equal treatment in practice.

In high-tech trade and export controls, the report says reciprocal measures — including U.S. related-party rules and China’s rare earth export controls — have significantly increased compliance costs. It urged both countries to narrow the scope of these controls and establish transparent exemption or removal lists to maintain global supply chain stability.

Sector-specific recommendations were also detailed. In healthcare, the report advises optimizing volume-based procurement rules, respecting market pricing for non-selected drugs, and accelerating approval of innovative and rare-disease medicines to align with global research and development timelines. For the automotive sector, it suggests equal treatment for internal combustion engine vehicles and new-energy vehicles in purchase taxes and trade-in subsidies, as well as refining the regulatory framework for smart connected vehicles, particularly on data security and cross-border transfers.

In financial markets, the white paper proposes expanding foreign institutions’ access to China’s treasury bond futures and derivatives, optimizing the Qualified Foreign Investor program, and facilitating cross-border capital flows.

Regionally, the report praises Shanghai as a pilot zone for institutional opening-up, recommending a negative list for cross-border data flows and improved “top talent” visas. Tianjin is cited as a model for green energy and consultative regulation, while U.S. firms in Wuhan and central China raise concerns about expatriate social security and rising service-sector costs.

The report notes progress in several Chinese policies. Measures such as expanded visa facilitation, the optimized 240-hour visa-free transit policy, and digitized visa processing have reduced the time and cost of business travel. Provisions on Promoting and Regulating Cross-Border Data Flows and negative list trials in free trade zones have also eased some compliance burdens.

Against this backdrop, the business community is closely watching President Donald Trump’s anticipated visit to China. Michael Hart, president of the AmCham China, tempered expectations.

Hart said they do not expect a grand bargain or a major breakthrough from the visit, adding that both sides recognize the importance of meeting and that stabilizing bilateral relations and continuing cooperation in several areas is important.

Regarding the scale and potential outcomes, Hart says the U.S. is expected to send a large delegation, reportedly up to 800 people and possibly including several cabinet secretaries. While progress may be made in areas such as agriculture, aviation and food export limits, large-scale agreements are unlikely.

On artificial intelligence, Hart says differing frameworks persist. Both countries and their companies are likely to develop their own standards, making near-term consensus unlikely as competition continues.

The survey also shows a shift in focus among U.S. companies in China. While firms previously emphasized labor and capital allocation, they are now increasingly concerned about a prolonged economic slowdown. Consumer-facing companies, in particular, are closely watching changes in consumer confidence and demand.

Contact editor Han Wei (weihan@caixin.com)