Many European firms are rethinking their investments in China because of its strict COVID-19 controls, a top business group said on Monday (Jun 20), warning that disruptions had pummelled operations. While the rest of the world has steadily removed coronavirus curbs, China has remained committed to its zero-COVID strategy, using lockdowns and mass testing to stamp out all infections.
But this strategy has hammered businesses and snarled supply chains –Â 60 per cent of respondents in a survey of European businesses said it has become harder to do business in China, in large part due to COVID-19 controls. The chamber conducted the survey on more than 600 member firms in February and March just as strict lockdowns were imposed in several areas to control China’s worst COVID-19 outbreak in two years –Â from business hub Shanghai to the northern breadbasket province of Jilin.
