SHANGHAI (Reuters). Several factors are driving U.S.-based companies to be less optimistic about China, including ongoing bilateral tensions, COVID-19 curbs, regulations restrictions and a slowing economic recovery, according to a Tuesday survey by American Chamber of Commerce.

The Chamber’s latest report on domestic market growth, based in part on the responses of more than 300 member businesses, shows that optimism has dropped by 11 percentage points over the past year.

Companies cited rising tensions between China and the U.S. as their top business concern, closely followed by inconsistencies or unclear laws.

President of American Chamber of Commerce in China Alan Beebe stated that there had been a temporary “bump” in optimism in China after Biden was elected in 2020.

“But what we’ve seen in the course of last year is that there is a new reality that has set in, where the policies and sentiment of the Trump administration remain in place with the Biden administration,” Beebe added.

Many companies also experienced difficulties with hiring foreign or local talent.

Exclusionary COVID-19 regulations in China make it hard for international hires in China to get started working.

The political system has also hindered domestic employment.

Many Chinese workers would not want to work for American firms. The ‘Brand America’ has started losing value because of the tensions in the [bilateral]”Relationship,” wrote one survey participant.

Both Beijing and the U.S. have faced difficulties in slowing down their economic growth.

The survey, released Tuesday, found that 59% expect 2021 profit to rise from 2020. This is however lower than levels pre-COVID.

The survey showed that most businesses planned to remain despite the grim outlook and difficulties, with almost two-thirds planning to invest more in China by 2022.