Nearly half of U.S. companies surveyed by the US-China Business Council (USCBC) do not plan to invest in China this year, despite reporting profitability in their operations. The 2026 Member Survey found that 49% of respondents had no China investment plans, while 51% intended to invest.
Meanwhile, U.S. access to critical minerals from China remains difficult due to export controls and licensing delays, according to a USCBC report. Beijing's restrictions, introduced in April 2025 in retaliation for U.S. tariffs, tightly restrict exports of rare earths crucial for advanced manufacturing. Despite a deal between former President Donald Trump and China's Xi Jinping in October 2024, where China committed to eliminating export controls, some rare earth elements remain "nearly unobtainable," the USCBC said.
29% of impacted companies are actively shifting to non-Chinese suppliers, while 47% are searching for alternatives but have not yet found viable options. The USCBC noted that China's dominance in critical minerals has led to a temporary trade truce but that U.S. efforts to diversify supply chains face challenges. Key minerals like samarium cobalt magnets and yttrium remain difficult to access, according to USCBC President Sean Stein.
The Trump administration has pushed to revive mineral supply chains from the U.S. and partner countries, but Stein said it would be difficult to eliminate supply issues over the next three years. The USCBC's findings highlight ongoing trade tensions and the economic impact of China's export restrictions on U.S. businesses.