US companies operating in China revealed that the public health crisis in the country has caused a detrimental impact on business operations there. A survey showed that about 150 US companies of the American Chamber of Commerce in China expect revenue declines by April this year.

The American Chamber of Commerce in China conducted a survey where it was found that about 150 member companies expect revenue declines due to the public health crisis in the country.

About 20 percent of the respondents perceived that if situations do not improve by August of this year, US companies' revenues would drop by 50 percent. The American Chamber of Commerce in China then announced that it would soon release financial forecasts on the long-term effects of the public health crisis in the country.

Most of the members claimed that among the business challenges that it would face in the coming months is finding a solution to the travel bans. They said that the travel restrictions significantly reduced staff productivity and slowed project timelines.

Furthermore, about a third of the respondents said that their establishments and business operations have incurred greater costs that significantly lowered their revenues.

The report claimed that several US-based fashion and footwear businesses that rely on product manufacturing in China have closed their factories. These include brands such as Skechers, Nike, and Tapestry.

The companies that still continued operations in the country reduced their operating hours particularly in areas where the public health crisis was more severe. They experienced significant decreases in sales and have hinted that their fiscal-year sales would be adversely hit by the said public health crisis.

According to Forbes, Nike was the first company to release a statement indicating the financial impact of the public health crisis on the brand. It allegedly experienced a significant drop in retail store traffic across China and is expecting a sizable impact on its financial status in the next months.

The report explained that China is significantly important to Nike because it makes about 15 percent of its total revenues. China is also where about 40 percent of Nike's products emanated from.

Nike China stores were also found to be the company's fastest-growing market globally. The report revealed that about one-third of the company's financial growth occurred due to healthy business activity in China in the previous year.

China Nike stores also generated about 2.4 billion USD of the company's total revenues since 2016 and have yielded an 18 percent average annual growth rate. Therefore, China has been the most profitable region for the brand adding about 800 million USD to its adjusted operating profits.