Regulatory policy

Uncertain zero-COVID policy pushes companies to ‘tipping point’ in China: report

Amid strict COVID-19 lockdown norms in the central Chinese city of Zhengzhou and several other manufacturing hubs across the country, the British Chamber of Commerce in China noted that the restrictions have already led business sentiment to reach its peak. “tipping point”. The chamber, in its latest position paper, said the foreign affairs climate in China faces uncertainty due to the communist government’s zero covid policy. In accordance with zero tolerance policy on coronavirus, no vehicle or person will be allowed out of infection area or factory during lockdown. He said the restrictions had already damaged China’s image, with foreign investors now losing confidence and the country facing a massive brain drain.

“COVID-19 outbreaks continue to disrupt business operations and daily life, and China’s borders have been virtually closed for most travel since March 2020. Therefore, it’s no surprise that recruitment challenges and talent development are one of the biggest problems facing British businesses,” the report said. “The lack of clarity and communication around the various policies, objectives and processes is perhaps the most significant cause of concern,” the report added. For his part, Speaker of the House Julian MacCormac appreciated the recent decisions taken by the Chinese government in favor of commercial establishments. He added, however, that the chamber was still waiting to see the results. on the ground while seeking long-term certainty.

Shanghai will reopen from June 1

“There remains a big question about what the current policies and control measures will mean for businesses in the coming months in China. It is still very early days when it comes to what this means in practice on the ground. We only see Shanghai reopening and business resuming in Beijing,” he said. It should be mentioned that China has been enforcing strict measures since reporting a few cases of the deadly virus. On Monday, authorities in Shanghai announced they would take major steps from Wednesday June 1 to reopen China’s largest city after a two-month COVID-19 lockdown that strangled the national economy and largely locked millions of people in their homes.

Image: AP