The CCP’s policy of pursuing zero has made many foreign companies dissatisfied and considered withdrawing from China.Figure: Retrieved from Xinhuanet
The epidemic in China continues to spread, the CCP authorities insist on pursuing a policy of zero-removal, and Shanghai continues to strictly control and control, but this has also affected foreign companies in China, and many foreign companies are also considering relocating their investments to areas outside China. The CCP media “Xinhua News Agency” issued an article on the 12th, calling on foreign businessmen not to leave, facing difficulties with China, and trying to guarantee the benefits of the zero-clearing policy to foreign businessmen. However, the outside world also highly questioned whether the “zero-clearing policy” is really useful.
“Xinhua” pointed out in the article that foreign business leaders are worried that China’s new crown epidemic control measures will affect their business, and foreign companies will consider China’s “alternative options”. Xinhua also called on foreign companies to “work with China to overcome difficulties and create a better future”.
The article also argues: “China’s dynamic reset has created a healthier, safer and more stable environment for China’s development, while also benefiting the world and bringing greater certainty to the world economy.”
However, in the face of the highly contagious Omicron variant, the outside world doubts the effectiveness of the CCP’s adherence to the “zero policy”, and is also worried regarding the continuous outbreak of epidemics in various parts of China.
Tedros Adhanom Ghebreyesus, Director-General of the World Health Organization (WHO), also made it clear on the 10th that “Beijing’s zero policy is unsustainable.” He also mentioned that the WHO has discussed relevant issues with Chinese experts, and also indicated that China should increase its understanding of the virus, seek better ways to fight the epidemic, and change its policies. But Tedros’ views and suggestions were subsequently blocked by Chinese social media.
Chinese President Xi Jinping recently called on the whole society to go all out to revitalize the Chinese economy. But Leland Miller, chief executive of the China Beige Book, said, “If 40% of the population and 40% of GDP are locked down, he can come up with any revitalization policies, but what are you going to stimulate?” He also warned , China is likely to face a “bloodbath” in the second quarter.
The European Union Chamber of Commerce in China also released a report on the 5th saying that the CCP’s zero-clearing policy has severely hit their supply chain, forcing them to cut employees and lower their revenue forecasts. Jorg Wuttke, president of the European Chamber of Commerce, also said: “If the zero policy is not changed, they will vote with their feet and invest elsewhere.”
Twenty-three percent of the 372 companies in the report are considering moving current or planned investments out of China, double the January survey and the highest percentage in a decade.
Colm Rafferty, chairman of the American Chamber of Commerce in China, also said that the authorities’ anti-epidemic measures have severely damaged the confidence of US companies to invest in China, and companies have also expressed that they are at the end of the tunnel and cannot see any light. Hua Ganglin also admitted: “We have to deal with the exodus of foreigners this summer, and more and more overseas employees are willing to take over vacancies in China.”
Shanghai continues to be strictly controlled, but this also affects foreign companies in China, and many foreign companies are also considering relocating their investments to areas outside China
The CCP media “Xinhua News Agency” issued an article on the 12th, calling on foreign businessmen not to leave, facing difficulties with China, and trying to guarantee the benefits of the zero-clearing policy to foreign businessmen. However, the outside world also highly questioned whether the “zero-clearing policy” is really useful.
According to statistics from the China Passenger Car Market Information Association, in April this year, China’s automobile production fell by more than 40% annually, and its sales volume fell by more than 30%. The picture shows the car factory in Shanghai.Figure: Retrieved from Chinanews.com
An office building in Shanghai has been transformed into a makeshift hospital.Figure: Taken from Weibo