The strict corona lockdowns in China are weighing heavily on the business of European companies in the People’s Republic. In a survey by the European Chamber of Commerce in Beijing published on Thursday, 75 percent of companies surveyed said the strict containment measures were having a negative impact on their operations. Almost 60 percent of the companies also stated that they had reduced their sales forecast in China for the current year.
The companies mainly complained about problems in the areas of logistics, warehousing and supply chains. It is also difficult to plan business trips or to hold personal meetings at all. It is also not always easy to access raw materials or components. In addition, the delivery of finished products within China is proving to be difficult.
“The Chinese market has lost a significant amount of its appeal for many respondents,” the chamber wrote. For 78 percent of the companies, the corona measures have made China a less attractive investment destination.
The Chamber of Commerce urged the Chinese government to make changes to restore confidence in the Chinese market. Instead of continuing to adhere to a strict zero-corona policy, more must be done to vaccinate the older part of the population. The chamber also recommended that authorities approve mRNA vaccines that are not yet used in large quantities in China. In addition, people who have tested positive with no or only mild symptoms should be able to be quarantined at home and no longer in central facilities.
The war in Ukraine also had a negative impact on some companies in China. A third of those surveyed stated that China had become a less attractive investment destination because of the war. Here, too, logistics was mentioned as a problem. Businesses have to adapt to new conditions as rail freight between China and Europe is no longer an option. Planes have to bypass Russian and Ukrainian airspace, which has also resulted in higher costs. (dpa)