The investment plans are a big turnaround from 2009 when members of the American Chamber of Commerce in South China slashed their investment budgets by 40 percent compared to the year before, said Harley Seyedin, the group's president. The chamber said members will invest a minimum of US$9.4 billion this year.

"Our companies believe the recovery is well on its way," Seyedin told reporters while releasing the chamber's annual white paper and membership survey. The group said it represents 1,650 foreign companies doing business in southern China.

But Seyedin said the top challenge for member companies are regulations that tend to change suddenly with little or no consultation.