November 30, 2022

China’s Covid Policies Have European Companies Wary of Investing

2 min read

A business group warned on Thursday that China’s “Dynamic zero quadPolicies have made European companies less willing to continue investing in the country.

A survey by the European Union’s Chamber of Commerce in China found that the tone among European businesses in the country has deteriorated since January, when a survey found broad optimism and more investment plans.

“We had a double battle with the invasion of Ukraine in February and March. Quad lockdown“And it has had an incredible effect,” said Jorge Witke, president of the chamber.

The survey, conducted April 20-26, provides new data on how China’s CoVID-19 lockdown has led to increasingly visible supply chain problems, including disruptions to trucking services and factory closures. Undermining the country’s competitiveness as a global manufacturing center and magnet. For Western investment and technology transfer.

Premier Li Keqiang has said that cities and provinces should try to reduce local economic barriers through their cowardly measures. Mr Witke, one of China’s most visible leaders in the foreign business community, has been a vocal critic of the economic crisis in recent weeks.

He claimed that China was so proud of its past success in controlling the virus that unlike other countries in the region, such as Singapore and South Korea, it refused to accept the path of living with the virus.

“They are prisoners of their own story,” he said recently Told a Swiss news outlet.

China’s coveted initiatives have intervened in the supply chain in 92% of businesses that responded to the chamber’s survey, with 372 respondents. It found that lockdowns and other measures in dozens of cities made China less attractive for investment for more than three-quarters of businesses.

Surveys of foreign businesses are one of the few indicators of widespread business sentiment in China on political issues. The Chinese government strictly restricts independent surveys on sensitive political issues, similar to the country’s current “dynamic zero-quad” policy.

Two-fifths of the surveyed European businesses are in or near Shanghai. An additional quarter is in or around Beijing, which was starting to close some neighborhoods in the last days of the survey.

The overwhelming majority of businesses that responded to the survey – 91% – said China should pay less attention to lockdown than vaccinate its entire population. Elderly people, especially those over the age of 80, are the least likely to be vaccinated in China, although they are at the highest risk of contracting the virus.

The survey also found that 82% of respondents want to allow people with mild cases or no symptoms of China Code to recover at home. China requires victims to be transported to hospitals or temporary isolation facilities in convention centers or other large buildings.

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