A recent survey of European businesses shows nearly a quarter of companies are considering leaving China due to Beijing's stringent COVID-19 measures.
The report showed a significant drop in European business confidence.
'COVID-19 Wreaks Havoc on Business Operations'The BCS data revealed that the pandemic and economic slowdown were the two main issues faced by European businesses in 2021. The pandemic ranked first among the top three challenges for 49 percent of respondents, while China’s economic slowdown was the second most challenging for 24 percent of respondents.
The report said that China’s stringent COVID-19 containment policies make it more challenging to attract and retain foreign talent.
'Market Access and Regulatory Barriers Persist'More than 40 percent of respondents reported that they missed business opportunities in 2021 due to market access restrictions or regulatory barriers, a continuation of a trend that has changed little over the past seven years, according to the report.
According to BCS, 54 percent of respondents expect “an increase of regulatory obstacles in China over the next five years, the highest level recorded since 2018. Nearly a third expect no improvement to the status quo.”
The Departure TrendLast week, the American Chamber of Commerce Shanghai issued its June COVID impact survey.
Among manufacturers, 35 percent are operating at full capacity. For those unable to operate at full capacity, the majority (71 percent) encountered difficulty moving between facilities and home, according to the survey conducted on June 7–9.
Among the respondents, 87 percent reported the negative impact of COVID lockdowns on company revenues.