Key Takeaways 1

Introduction 2

Mapping the Activities of U.S. Companies in China 3

Sales of U.S. Companies in China 4

Capital Expenditure and R&D Investments in China 7

U.S. Companies’ Employees in China 9

Profitability of U.S. Companies in China Has Declined in Recent Years 10

Why It Matters: The Benefits of Having U.S. Companies in China 12

Access to Scarce STEM Talent 12

Chinese Market Revenues 13

The Chinese Market as a “Listening Post”: Outward FDI Spillovers 15

Presence in China to Lock In the Chinese Market With U.S.-Built Ecosystems 16

Criticism Against U.S. Companies Operating in China 18

Policy Recommendations 19

Conclusion 20

Endnotes 21