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.”
Reuters – US lobby fears ‘exodus’ of foreign staff in China due to COVID measures
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.”
Barron’s – U.S. Companies in China Caution About Covid. How the Economy Could Be Hit
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.”
The Wall Street Journal – China’s Trade Slows as Demand Drops and Covid-19 Lockdowns Hit Supply Chains
The Washington Post – U.S. companies cut China investments
“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.”
The Business Times – US firms in China cut investment, revenue goals on Covid Zero
财新 – 中国美国商会调查:六成美资企业下调 2022 年营收预期 部分企业减少或推迟投资
“这项调查在4月29日至5月5日期间展开，旨在了解新一轮疫情的影响，共有121 家在华美资企业参与。调查显示，人员和供应链相关挑是当前令美资企业最担忧的问题。81%的受访企业表示，员工被迫在线或远程工作。61%的受访企业表示，目前疫情仍然影响企业供应链，交通和船运被暂停或延迟。”
华尔街日报 – 中国对外贸易放缓，受需求下降和防疫封控拖累
“中国美国商会 (American Chamber of Commerce in China) 周一公布在4 月底和5月初对其 121 个成员进行的调查结果，该商会表示，因应最近的新冠疫情，超过一半的成员推迟或减少在中国的投资，58%的成员预计今年的收入将比预期的要弱。近60%的受访成员表示仍未满负荷运转，理由包括人员短缺和物流困难。”
新浪财经 – 中国美国商会调查:六成美资企业下调 2022 年营收预期 部分企业减少或推迟投资
联合早报 – 中国美国商会调查:许多在华美企调低收入预期
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。”
“我们理解中国选择将健康和安全放在首位，但目前的措施正在扼杀美国企业对 中国的信心。我们的会员企业敦促中国政府在防疫、经济发展和国家开放之间取得更佳的平衡。”华刚林说。”