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.

Last year, a virologist from the University of Hong Kong slammed China’s ultrastrict policies. The virologist, Guan Yi, said the government’s attempts to quash the virus through mass testing and harsh quarantines are “doomed to fail”.

SOURCE: Reuters

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Tara Abhasakun

A Thai-American dual citizen, Tara has reported news and spoken on a number of human rights and cultural news issues in Thailand. She holds a Bachelor’s Degree in history from The College of Wooster. She interned at Southeast Asia Globe, and has written for a number of outlets. Tara reports on a range of Thailand news issues.

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