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… that consumers’ cultural confidence has risen. So how do we compete? We still need to work steadily on research, build the brand honestly, do retail well, provide good service, and iterate step by step.
<h3>36Kr: Among high-end beauty brands in China today, only about two have truly reached the listing stage, Mao Geping and Forest Cabin. Why these two in particular?</h3>
SL: The paths we have taken are completely different, but we share some common traits. For example, we are willing to open offline stores, do retail and customer experience in a down-to-earth way, dare to create new categories, and dare to invest in mid- to high-end brands.
<h3>36Kr: Why did you get personally involved in live commerce?</h3>
SL: When facing enormous difficulty, as the person leading the team, do you ask others to charge forward on your behalf, or do so alongside them? I chose the latter. At that time, everyone was isolated at home, and no one was willing to volunteer to do live streaming.
I not only went on live streams myself, I also called on all of the company’s managers to try it and explore this new thing. Only after trying it personally can you get a feel for it, understand whether it is actually difficult, and know whether, metaphorically, the tea is bitter or the medicine is bitter.
I think any boss who has no feel for the business at all will definitely fail if they just issue blind orders. At a critical moment in a company’s transformation, leaders and managers must charge at the front. When the business has already taken shape, leaders and managers should step back from the front line to build the organization and the team, and cultivate and replicate more outstanding leaders, rather than staying on the front line forever.
<h3>36Kr: Are there entrepreneurs or companies you admire?</h3>
SL: At this stage, Huawei has been the most helpful to us. It is very strong from strategy to execution. Also, I have recently become fascinated by Danaher’s system. As Forest Cabin next lays out its multibrand, internationalization, and merger and acquisition strategies, we plan to absorb Danaher’s system as well.
<h3>36Kr: Forest Cabin has a very high gross margin. Is that also the key factor supporting your ability to continue doing well on Douyin? After all, costs on Douyin are relatively high.</h3>
SL: Our products have an average repeat purchase rate of 34.2%. But some skincare brands have repeat purchase rates of only 4–5%. Even if they work desperately every day to acquire new users, customers come once and never return, so they cannot make money at all.
So it is not high gross margin, but a high repeat purchase rate, that determines whether Forest Cabin can generate profit on Douyin. Another factor is the brand strength accumulated through more than 20 years of offline stores, which brings high conversion.
<h3>36Kr: At the moment of survival or collapse, you made two important decisions, one was to enter <a href="/industry/e-commerce">e-commerce</a>, and the other was to open up to financing. Was the process of finding investors difficult?</h3>
SL: Before 2020, Forest Cabin always insisted on “guarding against fire, theft, and investors.” We had no intention of raising capital at all. At the time, the company was operating very well. Many investors came to us and repeatedly urged us to accept investment, but I rejected them all.
Then, in 2020, the pandemic suddenly arrived, and we suddenly realized that our cash flow could last only 67 days. I felt a tremendous sense of crisis.
So I began looking for investors in large numbers. During the week I was in isolation in Shanghai, from the first to the seventh day of the Lunar New Year, I contacted 50–60 investors I could reach. Some said they would come over and take a look after the pandemic passed, but I thought that by the time the pandemic passed, the company might already be gone.
I thought of what Jack Ma once said, that you have to fix the roof when the sun is shining. I regretted it deeply. When the sun was shining, I had not fixed the roof. Now it was raining, and the roof was leaking. So at that time, I resolved to generate sales ourselves, transform into e-commerce, transform into short video and live commerce, and first save the company.
After the company survived through transformation, we began proactively looking for investors again. But most of them said, “We are all investing in influencer-driven e-commerce brands now. Your brand is not attractive enough. How do we value you when you operate these stores?” In 2020, we had already reached RMB 500 million (USD 73.4 million) in sales. One investor said that because we had not built an internet business, he could only value us at RMB 100 million (USD 14.7 million). There were countless stories like that.
<h3>36Kr: For Forest Cabin now, you have already passed through the most difficult period. There should not be anything that puts you under as much pressure as you faced in 2020, right?</h3>
SL: I think every stage has different pressures. In the past, there was pressure to survive. Now, there is pressure to develop. Going public is only the first step in a long march. In the future, we still have to climb one mountain after another, build a multibrand portfolio, and pursue globalization. The road has only just begun.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3797662460419337">article</a> was written by Li Xiaoxia for 36Kr.
Note: RMB figures are converted to USD at rates of RMB 6.81 = USD 1 based on estimates as of May 12, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Premium skincare brand Forest Cabin will study L’Oreal, but not copy it: CEO interview

Retail

Consumer Economy

China

Southeast Asian countries are shifting their oil imports from the Persian Gulf to alternative suppliers, tapping Brunei, Libya, the US, and others to keep their economies running, official trade statistics and shipping data show.
More than two months after the US-Iran war broke out in late February, countries that rely heavily on Middle Eastern oil, such as Thailand and Vietnam, have been forced to find new suppliers as supply routes through the Strait of Hormuz remain essentially blocked.
According to maritime shipment data from Kpler, a European trade research company, Thailand's crude oil and condensate imports from the UAE fell by more than 50% in April, versus February, to 160,000 barrels per day.
The drop was partly offset by shipments from Brunei, which rose from zero in February to 71,000 barrels per day, the highest level recorded since 2018. Imports from Libya averaged about 113,000 barrels per day, a 28% increase from two months earlier.
Government statistics confirm the country's diversification of oil suppliers. According to March trade data released by the commerce ministry on April 24, crude oil imports from Saudi Arabia slid 43%, while those from the UAE were down 6% by volume from a year ago. Conversely, crude imports from Libya jumped 54%. Thailand also imported from Argentina and Guyana, which shipped no oil to the country in March 2025.
"Thailand is also seeking oil from several sources, including Brazil, Nigeria, and Kazakhstan, and we've got good responses." deputy prime minister and foreign minister Sihasak Phuangketkeow told reporters in March, underscoring the country's diversification efforts.
Vietnam has been among the hardest hit of the region's oil importers. 80% of its crude imports last year came from Kuwait, whose exports have nearly ground to a halt. Import volume fell to 159,000 barrels per day in April from 375,000 barrels per day two months earlier. Kpler data show that Vietnam sourced oil from Angola, Argentina, and the Ivory Coast in March, and from the US in April.
North of Vietnam, a refinery in Thanh Hoa operated by Nghi Son Refinery and Petrochemical announced in late March that it had secured sufficient crude supplies to continue operating through the end of May. Japanese oil company Idemitsu Kosan, the parent company of Nghi Son Refinery and Petrochemical, will <a title="" href="https://asia.nikkei.com/business/markets/commodities/japan-s-idemitsu-kosan-secures-4m-barrels-of-crude-oil-for-vietnam" target="_blank" rel="noopener">supply Vietnam with about four million barrels</a> of crude oil from alternative suppliers, Nikkei reported earlier.
Singapore, the world's top <a title="" href="https://asia.nikkei.com/spotlight/iran-tensions/singapore-world-s-top-ship-fueling-hub-grapples-with-tight-supply" target="_blank" rel="noopener">ship fueling hub</a> and a major petrochemical production center, has also moved swiftly to diversify its supplies. Crude and condensate imports fell to about 388,000 barrels per day in April, down a sharp 61% or so from February. More than 60% of Singapore's imports now come from the US, according to Kpler data.
Meanwhile, Brunei has emerged as a regional export hub. In April, the oil-rich Southeast Asian country exported 105,000 barrels per day, the highest level in five years.
Muyu Xu, a senior crude oil analyst at Kpler, also noted <a title="" href="https://asia.nikkei.com/spotlight/iran-tensions/asian-governments-scramble-to-secure-russian-oil" target="_blank" rel="noopener">Russia's emergence</a> as an alternative source for the region. "Asian refiners are expected to actively seek Russian crude as the most readily deliverable alternative," she said, but cautioned that limited tradable volumes are unlikely to reverse the supply crunch.
While concerns over shortages persist, Southeast Asian countries saw robust export growth in March overall, official statistics show.
Thailand's total exports hit a record USD 35.1 billion in March, up 18.7% from a year earlier, supported by strength in the electronics sector and sustained momentum from artificial intelligence-related demand.
Vietnam's exports rose 20%, year-on-year, in March, driven by manufacturing. Strong shipments of electronics, computers, and machinery underpinned the growth. Malaysia's exports climbed 8.3% from a year earlier, supported mainly by manufacturing.
Singapore's benchmark non-oil domestic exports rose 15.3% in March from a year earlier, accelerating from 4% growth the previous month, as electronics shipments continued to expand.
"Thanks to the AI boom, tech-exposed economies like Singapore, Malaysia, and Vietnam are better positioned in trade," said Yun Liu, a senior ASEAN economist at HSBC. However, she noted the benefits are unevenly distributed. "Singapore, Malaysia, and Vietnam stand out naturally, given their heavy exposure to the electronics industry," followed by Thailand and the Philippines. "Indonesia, on the other hand, has minimal exposure," she said.
This article first appeared on <a href="https://asia.nikkei.com/economy/trade/asean-states-shift-oil-imports-toward-brunei-libya-and-us">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.rwegrgdf5.eu.org/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

ASEAN states boost oil imports from Brunei, Libya, and US

Singapore

Malaysia

Myanmar

Thailand

Vietnam

Cambodia

Indonesia

Philippines

Southeast Asia

… relatively easy to obtain.
Many companies claim they want to build mobile physical AI. Model capability is one part of it, but more importantly, embodied intelligence has to be deployed onto specific hardware, and that distribution process is difficult. It is unlike digital AI, which can spread through smartphones from one person to ten, and from ten to a hundred, quickly expanding from one user to hundreds of millions of users. The speed of distribution is extremely fast.
So establishing a distribution platform and distribution network is also crucial. It determines how this capability is deployed onto mobile carriers and physical entities.
<h3>36Kr: How is Zhuoyu approaching distribution?</h3>
YB: We have our own methods. For example, we work with partners to define hardware standards. Once these standards are defined, we carry out hardware licensing and distribution through partners. That is the hardware distribution piece.
On the software side, our mobility capability SDK can package model capabilities and provide them to partners that do not have the ability to post-train models. We can also package it as “mobile AI.” In other words, once the model is good enough, we can open source it, allowing other parties to conduct post-training based on the model. That is another distribution method.
It can also be made directly into a “mobile agent.” In the future, for some low-safety, low-real-time applications, such as robot vacuums or lawn mowers, the device may only need to transmit a video stream to the cloud. The cloud computes the trajectory and sends it directly back to the machine. That could be another distribution method.
<h3>36Kr: Do these distribution methods correspond to Zhuoyu’s commercial charging models?</h3>
YB: Yes, and the commercial scenarios they address are also different.
The traditional approach, such as working on passenger vehicles or commercial vehicles, is to sell hardware, sell software licenses, and charge development fees and nonrecurring engineering fees. Internally, we call this the first growth curve business.
The second growth curve is about extending technologies that have already been validated in passenger vehicles into areas such as robotaxis and robovans. Although we also sell hardware and may charge development fees, we generally do not charge software licensing fees.
For the software portion, revenue comes through profit sharing. In Level 4 businesses, for example, as a service provider, we need to continuously participate in software iterations and may even need to take part in operations. That requires ongoing revenue, which evolves into a subscription and revenue-sharing model.
<h3>36Kr: It sounds like this will be more profitable.</h3>
YB: The profit structure is comparatively better.
We may have different ways to distribute algorithms. Take the “mobile agent” as an example. This distribution method is somewhat like distributing so-called “action tokens.”
It is equivalent to a consumer electronics device transmitting a video stream to a cloud-based inference model, after which the model sends back a trajectory. The charging model may be based on the number of times the consumer device is used, or the distance it travels, collecting fees similar to “action tokens.” This is another form of subscription.
<h3>36Kr: Will Zhuoyu handle subsequent operations and maintenance?</h3>
YB: For Level 2 systems, operations and maintenance are not involved in the first place. Operations and maintenance only come into play at Level 4. There needs to be a remote monitoring system that continuously monitors vehicle operations and, when necessary, enables remote takeover.
This is somewhat like the OnStar service in the past. Using this service requires payment. Once a vehicle activates Level 4 functions, whether for trunk logistics or passenger vehicles, an additional fee needs to be paid.
In the future, even when the sensor and computing configurations of passenger vehicles can support Level 4, car owners may still normally use a Level 2 or higher system. When they need to activate Level 4 functions, they will need to pay a little extra for every kilometer driven in Level 4 mode, because there will always be a system monitoring it.
<h3>36Kr: Do you think Level 2 and Level 4 will result in completely different business models?</h3>
YB: That’s right. Level 2 and Level 4 capabilities target completely different business models. From our perspective, we believe Level 4 should first be deployed in urban areas and then expanded to highway scenarios.
From the standpoint of engineering safety, for an accident of the same nature, the degree of harm caused on highways is far greater than in urban areas.
<h3>36Kr: As industry attention on physical AI grows, should we expect more attrition?</h3>
YB: A new round of reshuffling may be about to begin. All companies working on autonomous driving should, in the near future, transform into mobile physical AI companies.
If competition takes place on the mobile physical AI track, it becomes cross-sector competition. There may not even be competition among existing players in this industry. We will also need to compete with players that originally worked on digital AI and now want to transform into embodied intelligence and physical AI.
<h3>36Kr: Then what exactly is Zhuoyu’s moat?</h3>
YB: We believe there are two points.
The first is model capability. At present, there is still no conclusion on the industry’s iteration paradigm, or even on what model architecture will ultimately be adopted. Perhaps advanced new architectures such as 3D DiT or V-JEPA will break through in the future, but these remain unknowns.
The second is distribution capability, which is an extremely high barrier. Establishing a distribution platform and distribution network, creating an ecosystem, and uniting different partners to carry out distribution together will certainly be an extremely high barrier.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3789475357400068">article</a> was written by Xiao Man for 36Kr.

Are smart driving companies heading for a “physical AI” reckoning?

Transportation

Autonomous Vehicles

Mobility

… line-height: 20px!important; color: inherit; padding-top: 8px; border-top: 1px solid #e8e8e8;">Note: HKD, RMB figures are converted to USD at rates of HKD 7.84 = USD 1 and RMB 6.82 = USD 1 based on estimates as of May 7, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Hong Kong's new listing pipeline remains undeterred by Iran war volatility

Hong Kong

… fully match prevailing exchange rates.

China targets 70% advanced domestic silicon wafer use by 2026

Deep Tech

Semiconductors

… symmetrical stereo dual speakers.</li>
</ul>
The launch comes as tablets and wearables remain active consumer hardware categories. According to IDC, <a href="https://www.idc.com/resource-center/blog/global-tablet-shipments-rise-1-9-in-4q25-as-seasonal-demand-offsets-cooling-replacement-cycle/">global tablet shipments rose 5% year-on-year (YoY) in 2025</a> to 151.9 million units, while <a href="https://www.idc.com/promo/wearablevendor/">global wearable shipments grew 9.1% to 611.5 million units</a>. Huawei saw 4.9% YoY growth in tablets over the same period, largely in line with the broader market. In wearables, it recorded 21.7% YoY growth, shipping 25.5 million units last year.
The Bangkok launch appears aimed at further inroads in both categories. The MatePad Pro Max gives Huawei a thinner, lighter entrant in the premium tablet segment, while the new watches extend its smartwatch lineup across fitness, running, luxury design, and children’s use cases.

Huawei’s MatePad Pro Max leads Bangkok launch as tablets, wearables take focus

East Asia

Smartphones

… design is whether a robotic hand should resemble a human hand. Around this question, three design approaches have emerged: linkages, tendon-driven systems, and direct drive.
Linkages are the least humanlike, but they offer lower cost and easier control. Tendon-driven systems are the most humanlike and can perform fine manipulation, but they are costly and difficult to control. Direct drive is a compromise: it integrates the actuator directly into each joint. But it is not cheap, and it still faces engineering challenges in force transmission efficiency and thermal management.
Hybrid architectures have recently emerged as another technical path for dexterous hands. Evan Tao, founder of Chestnut Robotics and a former core member of the dexterous hand team for Tesla’s Optimus, said his team has chosen a hybrid architecture centered on tendon-driven structures capable of fine manipulation, supplemented by AI control and autonomous learning systems. Future solutions, he said, “will seek a balance between flexibility and engineering reliability.”
<h3>How can robots reach scaled deployment?</h3>
At the data layer, real-world data is still seen as important to helping robots understand application scenarios and learn to perform complex tasks.
Li Zizheng, CEO of XGSynBot, said the company’s hybrid data strategy still incorporates a small amount of high-quality real-world data. This keeps costs under control while improving model capability and generalization, he said.
At the system layer, Li said robots need to evolve from “single-function devices” into “multitask general-purpose platforms.” XGSynBot’s robotic arm, for instance, comes with a modular system featuring six quick-change modules. The benefit of this approach is that a single robot can switch among different processes, broadening the range of deployment scenarios.
Jan Liphardt, founder of OpenMind and an associate professor of bioengineering at Stanford University, summed up the deployment challenge this way: the sooner robots enter the real world, the better.
He has found that laboratory environments cannot simulate all the complexities of real-world settings, such as overly bright light, muddy and wet ground, rusty door hinges, and the load created when multiple systems run at the same time. These conditions often cause system failures after robots leave the lab.
For that reason, Liphardt argued, robots should not remain in laboratories until they are ready for deployment. Instead, he suggested placing robots in actual environments, including homes, schools, airports, kindergartens, and other public settings, as early as possible so they can collect interaction data and continue improving.
KrASIA features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3792155815304450">article</a> was written by Zhou Xinyu for 36Kr.

Robotics companies like MagicLab turn to synthetic data in the embodied intelligence race

Artificial Intelligence

Robotics

Embodied Intelligence

Moody's Ratings is preparing to issue credit evaluations for stablecoins using its own methodology, aiming to meet rising investor demand as digital assets gain traction in Asia and beyond.
Fabian Astic, managing director and global head of digital economy at Moody's, said the move reflects a shift as digital finance technology edges closer to mainstream adoption. He declined to comment on the timing of the first ratings.
"For the past few years, there has been a gap between supply and demand," Astic told Nikkei Asia in an interview in Tokyo. He noted that stablecoin issuers have been ready to launch new digital assets, but investors have remained cautious amid confusion about cryptocurrency risks.
Moody's is moving from monitoring the sector to "actively engaging" with it, Astic added. He heads a cross-functional digital economy team at Moody's that is trying to adapt its ratings and services to emerging technologies such as blockchain and <a href="/industry/ai">artificial intelligence</a>.
Stablecoins, which refer to digital tokens typically pegged to currencies such as the US dollar, have been viewed as a less volatile alternative to cryptocurrencies for broader use. Their market capitalization has expanded rapidly to about USD 300 billion in 2025, roughly double that of a year earlier, and could grow to as much as USD 4 trillion in the coming years, according to Astic.
While the US remains the dominant market for stablecoins, Moody's push comes as regulatory frameworks take shape across Asia.
Japan is seen as relatively advanced, having introduced a legal framework in 2023. Last fall, Japanese fintech company JPYC began issuing the <a title="" href="https://asia.nikkei.com/spotlight/cryptocurrencies/yen-backed-stablecoin-marks-turning-point-in-japan-fintech-ceo-says" target="_blank" rel="noopener">first JPY-denominated stablecoins</a>, with cumulative issuance reaching JPY 1 billion (USD 6.4 million) as of February.
Elsewhere, South Korea is gaining momentum as lawmakers debate new rules for digital assets. <a title="" href="https://asia.nikkei.com/spotlight/cryptocurrencies/hong-kong-grants-first-stablecoin-licenses-to-hsbc-stanchart-led-group" target="_blank" rel="noopener">Financial hubs such as Hong Kong</a> and <a title="" href="https://asia.nikkei.com/business/finance/southeast-asian-fintech-sector-embraces-wave-of-tokenization-and-ai" target="_blank" rel="noopener">Singapore</a> are rolling out their own regimes, though fragmentation remains a major obstacle.
Yet Astic cautioned that the term "stablecoin" can often be misleading. Unlike central bank money, these tokens carry credit risk, he said, meaning their value ultimately depends on the issuer's ability to meet redemption promises.
"If two identical bonds are settled in different stablecoins, and one is weaker than the other one from a credit perspective … as an investor, that's useful information to make an informed decision," he said, adding that not all stablecoins are equal from a credit standpoint.
To address this, Moody's published its methodology for rating stablecoins in March. The framework evaluates the quality of reserve assets backing the tokens, including their creditworthiness, exposure to market volatility and performance under stress scenarios.
It also assesses liquidity mismatches, operational and counterparty risks, and the legal enforceability of claims, as well as technology and cybersecurity risks associated with blockchain infrastructure.
In Asia, Astic pointed to potential adoption of stablecoins in remittance-heavy markets, such as the Philippines, where traditional cross-border systems are slow or costly. He also highlighted use cases among small and medium enterprises, which can utilize stablecoins to speed up settlement times, easing working capital pressures.
At the same time, stablecoins are increasingly seen as a potential settlement asset for financial transactions, particularly as interest in asset tokenization grows. Asset tokenization is a process of converting ownership rights of physical or intangible assets into digital tokens on a blockchain.
Astic estimates that as much as USD 250 trillion in assets, such as real estate, commodities, and luxury goods, remains "trapped" in legacy systems and could be unlocked through asset tokenization. He sees stablecoins playing a key role in enabling tokenized financial markets by acting as a form of "digital cash" within blockchain-based systems.
But significant hurdles remain before the technology can scale. The market remains fragmented, while regulatory uncertainty continues to slow adoption, Astic said. A lack of interoperability between systems limits the seamless movement of assets across borders.
Moody's sees credit ratings as a way to help address that final hurdle. By providing independent risk assessments, they can build confidence among institutional investors and support broader adoption in financial markets.
"Among the conditions that are needed for a stablecoin to scale is trust," he said. "And that is essentially what we summarize in a credit rating."
This article first appeared on <a href="https://asia.nikkei.com/spotlight/cryptocurrencies/moody-s-readies-stablecoin-ratings-as-asian-market-takes-shape">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.rwegrgdf5.eu.org/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.
Note: JPY figures are converted to USD at rates of JPY 156.31 = USD 1 based on estimates as of May 7, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.

Moody's readies stablecoin ratings as Asian market takes shape

Fintech

Cryptocurrencies

Japan

South Korea

Many Chinese companies held back on expanding investments in the US last year amid an increasingly unfavorable business landscape, with no significant rebound expected despite efforts by the world's two largest economies to ease tensions.
Among Chinese enterprises operating in the US, negative sentiment toward the country's investment and business environment rose to an all-time high this year, according to an annual survey of member firms by the US-based Chinese General Chamber of Commerce (CGCC), indicating a reversal of growing optimism that had begun in 2023.
The results of the survey were published ahead of an expected meeting between US President Donald Trump and Chinese President Xi Jinping in Beijing.
Chinese companies in the US are subject to investment restrictions in critical infrastructure, technologies, and sectors that concern national security. They also face rules limiting ownership of factories and other projects.
Firms have also had to navigate Trump's whipsawing tariff policies that have increased import costs and disrupted supply chains. But no member companies reported localization of production last year in response to higher duties.
Meanwhile, Beijing continues to restrict capital outflow and tighten control over Chinese companies listing overseas. It has also implemented export controls on supplies and critical technology, tightening scrutiny of outbound investments to ensure companies don't undermine national security.
"Against the backdrop of intensifying US-China economic tensions, confidence among Chinese enterprises in the US is under notable pressure, and overall expectations have become more conservative," the report wrote.
Nearly three-quarters of companies surveyed reported no change in new investments in 2025, the highest level since the survey began in 2014. Some 15% of surveyed firms decreased investment last year while 6% said they are now considering exiting the US market entirely, up from none the year before.
The annual survey was conducted in March, shortly after Israel and the US attacked Iran and news emerged that Trump and Xi would delay a planned meeting in Beijing. CGCC did not share how many firms were surveyed.
CGCC's members include both state-owned enterprises, such as Bank of China and Sinopec, and private sector companies like <a href="/industry/ev">electric vehicle</a> giant <a href="/company/byd">BYD</a> and <a href="/company/tencent">Tencent Cloud</a>.
Chinese firms said the top three challenges looking ahead to 2027 were US macroeconomic instability, bilateral political tensions, and trade frictions. Geopolitic uncertainty remains the biggest barrier for companies looking to build out their brand as distrust of Chinese capital remains.
Despite headwinds, a third of companies said revenue grew last year, while 81% remained profitable or broke even.
And even as firms were reluctant to expand their investments in the US, willingness to reinvest profits reached a record high of 79%, underscoring Chinese companies' commitment to the US, according to the chamber.
"Companies are reinforcing their US presence while preparing for continued uncertainty, yet many still recognize the long-term value of deeper engagement," said the report.
The anticipated meeting, also the first time a US president has visited Beijing since Trump did in 2017, will include discussions of an agreement that would ease bilateral tensions and could revive Chinese investments.
Qiu Wenxing, minister and deputy chief of mission at China's US embassy, told Chinese companies at an event hosted by the Chinese General Chamber of Commerce to be patient as the two governments are working together to stabilize the relationship.
"There are many difficulties, but there is a great potential to be unleashed in the field of investment and trade," he said.
But analysts think it is unlikely to create a new boom of investments in the US. Research organization Rhodium Group said it was unlikely Chinese investment will return to levels close to the peak of nearly USD 60 billion in 2016 after the Chinese government loosened its capital controls in 2014.
Among developed economies, the US saw the largest drop in value of completed Chinese investment transactions made over a three-year period in 2022 compared with 2014.
As of the first quarter in 2026, more than half of Chinese clean tech investment in the US announced in 2022 has been delayed, paused or outright cancelled.
"Chinese companies are caught between a rock and a hard place, and would need meaningful policy certainty on both sides before committing to increased investment," said Armand Meyer, senior researcher analyst at Rhodium Group. "Given these constraints, we should also expect a significant gap between announced investments and actual realization."
This article first appeared on <a href="https://asia.nikkei.com/business/business-deals/chinese-firms-suspend-us-expansion-as-business-climate-worsens">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing partnership with <a href="https://www.rwegrgdf5.eu.org/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/">Nikkei</a>.

Chinese firms suspend US expansion as business climate worsens