The release of this week’s June Flash Survey revealed US companies are still struggling with pandemic-related restrictions, despite slight improvements. 98% of respondents reported an ongoing negative impact from COVID-19 on their business, citing a range of factors, despite the announced end of lockdowns in Shanghai and elsewhere. Meanwhile, revenue projections have worsened in recent months, with 69% of respondents reporting their 2022 revenue projections have decreased, an increase of 11 percentage points (pp) from a previous survey conducted in May.
AmCham China Chairman Colm Rafferty remarked, “We have noted and welcomed incremental improvements when it comes to visa policies and the length of quarantines, but the overall picture remains similar: it is still exorbitantly expensive to travel to China due in large part to the fact that flight capacity is still at a fraction of pre-pandemic levels. This affects not only foreign executives attempting to travel to China, but also many of the Chinese executives at our member companies who tell us that the inability to travel to their US headquarters is undermining their authority and negatively impacting their companies’ strategies for China investment decisions”
See coverage on the new Flash Survey and more news on China’s COVID-19 situation in the articles below. Click here to download the Flash Survey Report.
Reuters – China’s factory, service sectors shake off 3 months of lockdown pain
“An AmCham China survey showed on Thursday supply chains received some relief in June, with fewer companies reporting COVID disruptions but an overwhelming 98% of firms in the poll still experiencing a negative impact from COVID on their business.”
South China Morning Post – US firms in China praise quarantine cut, but coronavirus restrictions still weigh heavy on confidence
“US companies in China have reported marginal improvements in business conditions, but inconsistent coronavirus restrictions across the country continue to pose a challenge to supply chains and production, the American Chamber of Commerce in China (AmCham China) said on Thursday.”
Bloomberg – China’s Economy Shows Signs of Improvement as Covid Eases
“US firms in China saw an improvement in output and logistics in June from May, according to a survey by the American Chamber of Commerce in China, but the situation was still not back to normal.”
NIKKEI Asia – China factory activity expands for first time in four months
“As before, we urge the government to seek an even more optimal balance between pandemic prevention, economic development and opening up of the country,” said Colm Rafferty, AmCham China’s Chairman.”
The Straits Times – China eases certain entry requirements for foreigners, a tiny step amid ‘zero-Covid’ policy
“Each of these measures is a step in the right direction, but more streamlining is needed,” said Mr Colm Rafferty, Chairman of the American Chamber of Commerce (AmCham) in China.”