MOST U.S. businesses operating in China oppose the use of tariffs in retaliation for the challenges they face, a survey showed Thursday.

Almost 69 percent of the 434 respondents to the annual China Business Climate Survey of the American Chamber of Commerce in Shanghai opposed tariffs, while just 8.5 percent backed them, the body said.

“Resolving these challenges in an equitable manner is essential for the United States and China to have a healthy long-term commercial relationship that brings benefits to both our peoples,” it said in a statement.

The survey, conducted between April 10 and May 10, reflects the mix of key concerns and realities for American businesses in China at a time of heightened uncertainty as the Trump administration raises the ante in its trade war with China.

The survey showed that while U.S. companies continue to face challenges in China, 34 percent of respondents felt Chinese government policies toward foreign companies had improved, up from 28 percent last year.

The number of companies that felt policies had worsened for foreign firms fell to 23 percent from 33 percent.

The biggest operational challenge of all was rising costs, an issue confronting more than 95 percent of respondents, the poll showed. More than 85 percent of respondents saw domestic competition as a challenge.

Almost 62 percent of companies surveyed expect to increase investment this year, led by technology hardware, software and services companies, and aerospace and aviation firms.

Companies saw broadly positive operating results as the yuan held up against the dollar, financial deleveraging continued, consumer spending remained firm and the global economy supported demand.

The proportion of firms expecting to be profitable was flat, at about 77 percent, but firms said they were pulling back slightly on investment. (SD-Agencies)