China’s Zero Covid policy reduces optimism among US firms in the mainland

Pandemic-related shutdowns pose an even bigger headache to US companies in China than worsening relations between Beijing and Washington, according to a survey by the US-Business Council. Only 51% of respondents expressed some degree of optimism about their five-year business outlook in China with its Zero-Covid policy. According to the report, some 96% of companies were negatively impacted by China’s pandemic control measures, with more than half pausing, delaying, or cancelling altogether their investment plans in the country. The report said new investment by US companies in China are expected to slow in 2023 as a result of the virus controls and other Chinese policies, including those impacting data and cybersecurity; increasing difficulties in selling to the government; and intellectual property protection issues.