US companies in China are reporting record-low profits and business confidence amid escalating US-China tensions and a slowing Chinese economy, according to a report by the American Chamber of Commerce (AmCham) in Shanghai. Only 66% of 306 surveyed firms were profitable last year—the lowest on record—and just 47% are optimistic about their business outlook in China over the next five years. Geopolitical tensions are the top challenge, leading many businesses to redirect investments to regions like Vietnam, Malaysia, and South Asia. A record 25% of companies reduced investment in China last year due to concerns over slowing growth. The report mirrors sentiments from the EU Chamber of Commerce in China, which highlighted increasing risks and diminishing returns for foreign firms operating in the country.