A resounding 95 percent of US firms operating in China consider the Chinese market to be "somewhat to very important" for staying globally competitive, according to an annual member survey released by the US-China Business Council.

"For US companies, China is not optional," the survey released on Wednesday highlighted.

According to the survey, almost half of US companies apply learnings from their China operations to other markets, where they will contend with Chinese and foreign companies already tested in China's relentlessly competitive and increasingly innovative market.

"The results are clear: despite the challenges, competing in China is a prerequisite for many American companies to compete globally — our policies must enable them to succeed there," said Sean Stein, USCBC president.

Meanwhile, US export controls, according to the survey, are "not calibrated to empower American companies", with roughly half of affected firms losing sales to Chinese or international competitors.

The survey also found that tariffs continue to "raise costs and boost inflation" for US citizens. The proportion of companies affected has risen to 72 percent despite the detente. "Companies are only able to absorb some of these costs internally, and 42 percent are passing some costs downstream to consumers," it added.

"This year's results should be a wake-up call to policymakers in both countries, particularly as they set the agendas for the Board of Trade and the Board of Investment," Sean said.