China’s COVID-19 measures causes major damage to business confidence

A survey conducted by the European Chamber of Commerce showed that China’s strict containment measures against COVID-19 had caused “disruption on an epic scale”. It said that China’s strict zero COVID-19 policy has caused a considerable drop in business confidence among European companies operating in the country as supply chains are tangled, revenue projections fall, and senior staff leave. Results of the survey showed that almost 60% of more than 370 member-respondents decreased their revenue projections for this year, while about one-third saw a drop in staffing. Most companies also reported a negative effect on supply chains as they struggle to access raw materials and components or deliver finished products. The report said that the Chinese market has lost a considerable amount of allure for many respondents and that the COVID-19 measures have made it less attractive for investment.