U.S. companies’ optimism about business conditions in China has recovered to hit three-year highs, an annual survey showed Thursday.

The American Chamber of Commerce in Shanghai, which conducted the survey with consultancy PwC China, attributed the renewed optimism to rising revenues as well as ebbing concerns over the COVID-19 pandemic in China, which has largely gotten control over its spread with a zero-tolerance policy.

U.S.-China relations reached a nadir in 2019 during the Trump administration, which launched a bruising trade war with China and also floated sanctions toward some of China’s highest-profile tech companies.

The Biden administration, however, has shown more reservation toward taking direct action against China, though relations remain tense.

“Business in China recovered quickly from last year’s lockdown,” said Ker Gibbs, president of the American Chamber of Commerce in Shanghai, which published the survey that was conducted between mid-June and mid-July.

“However, we are still feeling the pandemic’s effects, with members continuing to be negatively impacted by China’s travel restrictions.”

(SD-Agencies)