Singapore’s primary Chinese language newspaper Lianhe Zaobao recently reported that the latest survey report of the European Union Chamber of Commerce in China showed that China’s strict COVID control measures have brought huge uncertainty to European companies in China. Nearly 60 percent of the companies have lowered their annual revenue forecasts as a result. China’s image as an investment destination has also been affected. More than half of the companies lowered their revenue forecasts by 6 percent to 15 percent, and more than 30 percent of companies lowered their revenue forecasts by more than 16 percent. Around 77 percent of the respondents expressed the belief that China’s attractiveness as an investment destination has declined. Around 23 percent are considering moving current or planned investments out of China. As many as 75 percent of the companies surveyed said that their operations were negatively affected. This negativity was reflected in three main aspects. These are logistics and warehousing pressure, business travel, as well as the cancellation of offline meetings. What these businesses need is a time frame for reopening. Compared with the impact of the lockdown measures, the impact of the Russian-Ukrainian war on European companies in China is much less.
Source: Lianhe Zaobao, May 7, 2022