The American companies who took part in the survey are optimistic about their prospects for the year ahead. After a difficult couple of years, almost two thirds said they gained market share in their China business this year. Seven out of ten expected their revenue to grow by 10% or more in 2011.

But while China has huge potential for growth, it is also a hugely difficult place to make money. They complain about the problems recruiting and retaining good staff, about local officials who favour domestic companies over their foreign competitors and about the perennial problem of how to protect their intellectual property.

The trade tensions between the two countries don't help either. In the US, politicians complain bitterly that China doesn't play fair when it comes to trade, keeping the value of its currency artificially low to help boost exports.

At the report's launch in Shanghai the consensus was that China is still a risky place to try to do business, but it would be far more risky for a company to ignore China. The growing domestic market here is too valuable to global firms seeking new customers.

Chris Hogg, BBC News, Shanghai

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Vocabulary

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prospects

chances of being successful

market share

amount of money a company receives from selling its products or services compared with other similar businesses

revenue

money or income received

make money

earn money by selling something

recruiting

hiring or employing

perennial

continuing or ongoing

intellectual property

original ideas, products or inventions that a person has created

trade tensions

disagreements over buying, selling or exchanging goods or services

play fair

here, conduct business in a moral and honest way

consensus

agreement among most people