U.S. firms expressed increased optimism about China’s near-term business environment, according to a new survey.

Some 40% of survey respondents were optimistic about their profit potential over the next two years, up from 33% a year earlier, the American Chamber of Commerce (AmCham) in China said in report Thursday. And 44% indicated they felt good about market growth, a slight uptick from a year ago.

Still, 43% of AmCham members indicated they don’t plan to expand their investments this year, and another 5% planned to cut the spending.

Chinese officials have made a slew of pledges in recent weeks about strengthening fiscal policy this year. They promised Thursday to maintain the “necessary intensity” for government spending this year, including by using the central budget to support investment.

Some 19% of survey respondents expressed optimism in ties between China and the United States over the next two years, up from 8% a year ago. (SD-Agencies)