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2026 Q2 China Performance Survey
China’s business environment is shifting. We asked CEOs and leaders in our China Performance survey to find out how their businesses are changing.
Here are the key takeaways from the survey:
2025 budget – bottoms up vs. the top.
- 60%+ met their bottom-line target (whether margin % or dollar value); but the market is still soft with just 54% meeting sales targets.
Iran War hits profitability, but market pricing starts to recover.
- Geopolitical issues (32%-50%), rising input costs (23%-33%), and shipping delays (8%-22%) rose sharply as high impact factors affecting profitability in Q1’26.
- Q1’26 is the first quarter in two years with more firms seeing stable or rising prices than falling prices.
Stronger expectations for Q2’26.
- 87% expect steady or improved sales growth; strongest growth expectations since Q2’24.
- 77% expect profits (% revenue) to remain steady or improve
- 79% expect profits (USD value) to remain steady or improve
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