China's pursuit of self-sufficiency in a wide range of industrial sectors has divided foreign companies, with some welcoming the trend as another opportunity to invest there, while others worry it will lead to risks to China's trading partners and its economy.

Two influential groups of foreign companies operating in China released different reports on Thursday.

These reports reveal a stark divide over whether international companies support China's efforts to replace imports with a focus on self-sufficiency in domestic production.

China is subsidizing its manufacturers of semiconductors, commercial aircraft, electric cars, and other products as part of a national effort to achieve greater self-reliance.

The European Union Chamber of Commerce in China said in its report on Thursday that these policies discourage foreign investment in China.

These Chinese policies are causing the country to spend heavily on developing its own versions of products that are manufactured more efficiently elsewhere, the group said.

"There are worrying signs that China is increasingly moving inward, as evidenced by its 14th five-year plan," the report said, referring to the government's economic blueprint earlier this year.

The report added, "This trend casts doubts on the country's future growth path."

"There are worrying signs that China is increasingly moving inward, as evidenced by its 14th five-year plan... This trend casts doubt on the country's future growth trajectory."

— European Union Chamber of Commerce in China

The Trump administration has been highly critical of China's focus on replacing imports with domestic production, a focus emanating from the country's recent manufacturing policy called "Made in China 2025".

On the contrary, American companies operating in China have been more supportive of Beijing's policies.

A separate survey report issued by the American Chamber of Commerce in Shanghai found that a third of its members believed that China's strategy of self-reliance could increase their revenues.

Almost none of them thought they would be harmed, and the rest saw little impact or said it was too soon to know what would happen.

American companies that favor the Chinese strategy have concluded that the factories and other companies they own in China will generate greater sales to their Chinese customers.

Those companies were less concerned about the damage to their often modest exports from the United States.

None of the US companies surveyed had any plans to bring their operations back to the United States, despite efforts by the Trump and Biden administrations to encourage investment at home.

“American companies that favor the Chinese strategy have concluded that the factories and other companies they own in China will generate greater sales to their Chinese customers.”

Keir Gibbs, president of the American Chamber of Commerce in Shanghai, said he was surprised by the opinions of his chamber members.

He said that US companies, more than their European counterparts, tend to focus primarily on financial results for the next quarter, which are usually better improved by staying in China.

"This gives companies a short-term focus that doesn't serve them well when looking at a market like China," Gibbs said. "They are right to focus on opportunities and market growth, but the Chinese push for self-reliance could limit those opportunities in the long run."

© New York Times Foundation 2021

It was transferred to Arabic by Al Jazeera's leadership page