Strict Covid-19 rules make companies in China think about moving investments
Now that 43 cities in China are under either full or partial lockdown, more and more European companies in the country are seeking to move their investments. The European Chamber of Commerce in China announced today that nearly a quarter of respondents on a survey were considering moving current or planned investments out of China.
92% of the respondents say they have been negatively impacted by China’s recent port closures, decreased road freight, and rising sea freight costs. Meanwhile, the lockdowns in 43 cities involved tight restrictions on movement for locals, according to one financial services group.
The survey found that the number of respondents considering, or planning to move investments, was over double the number at the beginning of this year.
China’s zero-Covid policy is among the strictest Covid-19 policies in the world. In Beijing, parks and tourist attractions are only allowing 50% of their normal capacity. All restaurants in the capital city are only serving customers take-out, with no dine-in services, from Sunday to Wednesday.
Visitors to many office buildings and attractions like the Great Wall must show proof of a negative Covid test taken in the previous 48 hours. The city’s Universal Studios theme park said it had to be shut down temporarily. The country’s transport ministry said last week, that in China overall, 100 million trips are expected to be taken from Saturday to Wednesday, 60% fewer than last year.
SOURCE: Reuters
