China’s COVID controls will impact foreign investment for years – US Lobby

People wearing face masks following the coronavirus disease (COVID-19) outbreak stand outside a currency exchange office in Hong Kong, China November 10, 2020. REUTERS/Lam Yik/Files

SHENZHEN, China, May 17 (Reuters) – China’s strict COVID-19 controls will hamper foreign investment in the country for years to come as travel limits block the pipeline of projects, the president warned on Tuesday. of the American Chamber of Commerce.

There are few signs that US companies are leaving the Chinese market, but the years-long project research and due diligence process has been delayed, Michael Hart said at a launch event for the company’s annual report. bedroom.

“We are very concerned about ongoing and future investment by U.S. and foreign companies in China because people cannot access it in terms of travel,” he said.

“Unfortunately the COVID lockdown this year and the restrictions of the past two years are going to mean in three, four, five years we will most likely see a decline in investment.”

As much of the world has lifted coronavirus restrictions, China has strictly limited flights into the country and insisted that a zero-COVID approach is needed to prevent the country’s health resources from being drained. submerged.

The restrictions also cause foreign companies with supply chains in China to seek alternative sources to reduce disruption, Hart said.

The chamber’s report cites market access restrictions, discriminatory regulations and intrusive cybersecurity requirements as top concerns for American businesses.

Last week, the chamber published a flash survey that warned of an “exodus” of foreign staff to China due to COVID measures and ongoing lockdowns, saying 58% of members had reduced their income projections for China. ‘year. Read more

European businesses are bracing for the next wave of disruption from COVID outbreaks, with little chance of improvement until China increases vaccination rates, the European Chamber of Commerce in China said on Monday. Read more

Reporting by David Kirton; Editing by Kenneth Maxwell

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