AmCham survey on China’s latest Covid lockdowns, American businesses
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Shanghai’s metropolis, home to many foreign-owned businesses, was placed under lockdown for two weeks this week by municipal authorities in an attempt to contain the worst Covid wave that China has seen in nearly two years.
Hector Retamal | Afp | Getty Images
BEIJING — China’s worst Covid wave since the initial shock of the pandemic has cut into annual revenue projections for roughly half of American businesses in the country, a survey showed Friday.
China’s American Chamber of Commerce in China with Beijing as its Shanghai branch surveyed 167 companies in China this Tuesday and Wednesday.
Shanghai is a major city in China, home to many international businesses. two-part lockdownThis week, municipal officials sought to manage a growing number of Covid cases. These actions were in addition to earlier lockdowns. tech hub of ShenzhenThe manufacturing hub of DongguanThere are travel restrictions throughout the country.
According to the survey, 54% of respondents had reduced their 2022 revenue projections due to the Covid-19 epidemic.
More than 80% of manufacturers reported reduced or slowed production as well as disruptions in supply chains.
Nearly all (or 99%) of the respondents stated that they had been affected by the recent epidemic.
China tightened its restrictions on international travel in the wake of the Pandemic in 2020. Foreign businesses have reported long quarantine times upon their arrival in China and difficulty in bringing senior staff or technicians into China.
Respondents to the AmCham survey indicated that half of those polled said China’s Covid-19 restrictions will be kept in effect for at least one year. Nearly 75% stated that these restrictions would decrease their profit and revenue.
A majority of the manufacturers in China indicated that they plan to move their manufacturing and operations out of China, with nearly 20% saying so.
The majority of survey respondents weren’t satisfied with China’s efforts to curb Covid’s spread. However, they were more than half dissatisfied by the required quarantines and restrictions on travel to China.
Survey respondents overwhelmingly recommended that China allow home quarantine, or other options be made available to Chinese citizens. They also suggested that China simplify the entry requirements and increase air travel to China.
China continues to report a lower rate of Covid deaths than in other countries.
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