Chinese market a key engine for U.S. firms' global revenue growth: report

The Chinese market is dynamic and serves as a key engine driving global revenue growth for U.S. companies, according to a report from the Hurun Research Institute on Friday.

From the 2020 fiscal year to the 2023 fiscal year, the average compound annual revenue growth rate of 70 sample U.S. enterprises in the Chinese market was 12 percent, approximately 1.3 times their global market average, according to the report, which cites financial information disclosed by the 70 firms.

Driven by advancements in the information technology sector, U.S. companies in the consumer electronics and semiconductor industries, such as Apple, Tesla, Qualcomm and Nvidia, had experienced particularly large revenue growth in China during the period, the report notes.

In the 2023 fiscal year, the Chinese market's median revenue contribution among sample U.S. companies was 15 percent, with approximately 41 percent of these companies explicitly stating in their financial reports that China has become their second-largest source of revenue globally, which further underscores China's pivotal role in the strategic global positioning of businesses.

Despite trade and investment tensions, the U.S. companies sampled in the report remain optimistic about the long-term development of the Chinese market, and many are continuing to expand their investment in China, according to the report.

In February, U.S. carmaker Tesla's new Megafactory, which is dedicated to the manufacturing of energy-storage batteries known as Megapacks, launched production in Shanghai.