China’s COVID controls makes EU corporations think about shifting investments

SHENZHEN, China: European companies in China are more and more trying to shift their investments to different markets because of the nation’s strict COVID-19 containment measures and provide chain disruptions, the European Chamber of Commerce in China mentioned on Thursday.
A member survey discovered that just about 1 / 4 of respondents had been contemplating transferring present or deliberate investments out of China, greater than double the quantity at first of the 12 months.
“Our members are weathering the storm for now, but when the present state of affairs continues, they are going to more and more consider alternate options to China,” mentioned the chamber’s president, Jorg Wuttke.
Whereas member corporations perceive that quick restrictions want to stay in place to keep away from the medical system being overloaded, additionally they wanted a timeframe for a gradual reopening, Wuttke mentioned.
Some 60% of the 372 respondents mentioned they’d lowered their income forecasts for the 12 months.
Lockdown measures have disrupted provide chains, with 92% saying they’d been negatively impacted by current port closures, decreased highway freight and rising sea freight prices.
As of Tuesday, 43 cities had been below full or partial lockdowns or had applied district-based controls, which contain strict mobility restrictions for residents, based on Nomura.
Most of Shanghai’s 25 million folks have endured greater than a month of confinement of their residential compounds. (Reporting by David Kirton: Enhancing by Neil Fullick & Simon Cameron-Moore)

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