The release of last week’s Flash Survey saw US companies reporting a dire economic picture in China, following COVID-19 outbreaks that have spread across the country in recent weeks. The Survey, representing responses from 121 company respondents, shows that the foreign business community’s confidence in doing business in China continues to decrease, with all of respondents saying they had been negatively impacted by China’s policies concerning the recent outbreak.
As AmCham China Chairman Colm Rafferty remarked, “Revenue forecasts for this year are down, but, more worryingly, members don’t see any light at the end of the tunnel.” He continued, “The Chamber’s history in China dates back to 1919 and many of our largest member companies have been here for decades; American companies have played an integral part in China’s economic rise in a way that has benefited both the US and Chinese economies. However, as long as the current pandemic-related restrictions remain in place, multinational companies will continue to evaluate other options globally: more than half of our companies have already either delayed or decreased investments in China.”
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.
Bloomberg – More Than Half US Firms in China See Lockdowns Hitting Revenue
“We understand China choosing to prioritize health and safety above all else, but the current measures are throttling U.S. business confidence in China,” Colm Rafferty, chairman of AmCham China, said in the statement. “An already challenging situation continues to worsen,” he said, adding that companies “don’t see any light at the end of the tunnel.”
South China Morning Post – China’s coronavirus controls are ‘throttling US business confidence’, American lobby groups says
CNN Business – Foreign business urges China to change course on Covid
“As many as 58% of respondents have cut 2022 projections for revenue in China, up from 54% just a month ago. Nearly half said that foreign workers are either significantly less likely or refusing to relocate to China because of the zero Covid policy.”
Asia Financial – US Business Confidence in China Getting Worse, AmCham Warns
“China’s fixation on a zero-Covid strategy has shaken the already waning confidence of foreign companies. “An already challenging situation continues to worsen,” AmCham China chairman Colm Rafferty said.”
CNBC – More U.S. companies in China cut forecasts, scale back investments as Covid persists
“Between late March and late April, the share of respondents reporting an impact from Covid restrictions rose by 4 percentage points to 58%, according to an American Chamber of Commerce in China survey released Monday.
While that’s not a large increase, 4 or 5 percentage points every month could be “very significant” if Covid controls persist for another five months, Michael Hart, AmCham president, told CNBC in a phone interview.”
“More than half of the 121 companies polled by the American Chamber of Commerce in China have either reduced or delayed investment in the country, while nearly 60 percent of them lowered their income forecasts for this year following the latest outbreaks, according to a statement.”
美国之音 – 中国美国商会调查:防疫措施扼杀在华美企信心，“隧道尽头看不到光”
“中国美国商会主席华刚林 (Colm Rafferty )在一份声明中称，“今年的收入预测有所下降，但更令人担忧的是，商会会员看不到隧道尽头的任何曙光。” 他提到，前往中国仍然像以往一样困难。今年夏天，该组织正在为大量外国人才外流做准备，愿意去中国任职的海外员工越来越少。”