COVID-19: Joint Survey Reveals Business Impact of Latest Outbreak

“The latest COVID-19 situation in China remains very fluid,” said AmCham China President Michael Hart. “The latest outbreaks have been largely regional in nature, but are already impacting almost all of our companies nationwide. There has been lots of discussion about China changing its pandemic strategy and while we understand the government’s focus has been on these domestic outbreaks, travel in and out of China continues to be the top priority for our members.”

The survey was conducted from March 29-30, 2022, and was answered by 167 member companies with operations throughout China. Respondents represented four industries: Manufacturing, Services, Consumer, and Resources.

Survey highlights include:

• Overall impact: 99% of respondents said that they had been impacted by the recent outbreak, citing a range of factors.
• Production: 60% reported slowed or reduced production because of a lack of employees, inability to obtain supplies, or government-ordered lockdowns. Among manufacturers, 82% reported slowed or reduced production.
• Supply chains: 57% of respondents reported that the recent COVID-19 outbreak had disrupted their supply chains due to disruptions in transportation and shipping networks. Among manufacturers, 86% reported that their supply chains had been disrupted.
• Revenues: 54% of respondents have decreased 2022 revenue projections following the recent COVID-19 outbreak, while an additional 38% say that it is too early to estimate the impact on revenues.
• Investment: 29% of respondents have delayed investments because of the recent COVID-19 outbreak, while an additional 17% have decreased investments. Another 30% say it is currently too early to tell how their investments will be impacted. However, 49% of companies will reduce investment if China’s current COVID-19 restrictions remain in place into next year.
• Foreign staff: 81% of companies reported that China’s management of COVID-19 had impacted their ability to attract or retain skilled foreign staff, with 35% describing the impact as either large or severe.
• China’s COVID-19 management: 51% of respondents are satisfied with China’s efforts at controlling the spread of COVID-19. However, 77% of respondents are not satisfied with the length of quarantines, and 69% are not satisfied with restrictions on travel to China.