AsianFin -- Political tensions, fierce domestic competition and slowing economic growth are eroding the confidence of American businesses in China, with optimism about their five-year outlook falling to the lowest level on record, according to a survey released Wednesday.

Only 41% of U.S. firms said they were optimistic about their five-year prospects in China, down six percentage points from last year, the American Chamber of Commerce in Shanghai reported. That marks the weakest sentiment since the chamber began publishing its Annual China Business Report in 1999.

The survey, which covered 254 member companies across multiple industries, was conducted shortly after U.S. President Donald Trump unveiled sweeping “Liberation Day” tariffs, prompting a tit-for-tat escalation with Beijing. While a temporary pause has since lowered tariff levels, uncertainty remains high.

Geopolitics continues to dominate concerns, with 66% of respondents citing U.S.-China tensions as the biggest challenge to their business over the next three to five years.

“We love this 90-day pause, but the issue is not going away, it’s still here,” said Eric Zheng, president of AmCham Shanghai. “The uncertainty makes it very difficult for companies to plan ahead.”