Profitability and business confidence among US companies in China have rebounded to the highest levels in years, as Beijing and Washington work to stabilise bilateral trade relations, according to a new report by a prominent business chamber.The survey by the American Chamber of Commerce in Shanghai (AmCham Shanghai) logged a marked upswing in confidence among its members compared with last year’s report, with the proportion of US firms feeling optimistic about their five-year outlooks in China soaring 17 percentage points to 58 per cent.That is the highest level recorded since 2021 and breaks a run of four years in which confidence fell to record lows, according to the findings released on Thursday. Meanwhile, only 16 per cent of respondents reported feeling pessimistic about their prospects, the lowest figure since 2021.US firms’ profitability in the Chinese market has also hit a post-pandemic peak, according to the survey, with 78 per cent of firms reporting a profit last year – the highest level since 2019.The improvement has coincided with an easing of last year’s US-China trade war, with both sides working to stabilise bilateral ties, though frictions over trade, technology and security persist.High-level engagement between the two powers has also picked up in recent months, with US President Donald Trump visiting China in May and Chinese President Xi Jinping expected to travel to the United States later this month.“Members have clearly noticed government efforts to improve the regulatory environment, and this year those gains are reinforced by steadier US-China relations,” said Jeffrey Lehman, chair of AmCham Shanghai.