Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that a survey that the American Chamber of Commerce in China (AmCham) released showed that, due to China’s COVID prevention measures, 58 percent of the surveyed U.S. companies in China have lowered their revenue forecasts for 2022. More than half (52 percent) of the companies have postponed or reduced investment in China. The survey was conducted from April 29 to May 5. A total of 121 U.S. companies in China participated in the survey. The results showed that core employee shortages and supply chain disruptions are currently the biggest challenges for U.S. companies in China. More than 15 percent of U.S. companies with operations in Shanghai said their operations in Shanghai have been completely closed since the outbreak in March. In terms of supply chain challenges, 61 percent of respondents cited disruptions to transportation networks as the main reason. On the side of competent workers, 49 percent of the respondents said that, due to the COVID policies, foreign talent is less likely or refuses outright to relocate to China. Some have planned to leave China permanently. Colm Rafferty, president of the American Chamber of Commerce in China, said in a statement, “This year’s revenue forecasts are down, but what’s more worrying is that chamber members don’t see any light at the end of the tunnel.” He mentioned that two former AmCham China presidents recently faced challenges when they traveled to China from the U.S. One completed a 22-day quarantine in Shanghai and another 15 days in Beijing before being freed. The other just completed a 43-day quarantine and lockdown in Shanghai. He then choose to fly directly back to the U.S.
Source: Lianhe Zaobao, May 10, 2022