China’s foreign firms desperate for shift away from ‘old toolbox’ of mass testing, isolation to combat Omicron
- EU Chamber of Commerce in China sends letter to Vice-Premier Hu Chunhua and implores leadership to take a less-disruptive course of action
- Recent surveys by other foreign business groups in China have recorded similar sentiments amid a growing public outcry over zero-Covid strategy
The time has come for Beijing to adjust its unwavering zero-Covid policy that has resulted in a serious disruption of economic activities, an influential foreign business association said in a letter to Vice-Premier Hu Chunhua.
The European Union Chamber of Commerce in China sent the letter, dated Friday, amid a growing outcry over disruptions to daily lives and business resulting from measures such as mass testing and large-scale lockdowns.
“The Omicron variant is posing new challenges that seemingly cannot be overcome by applying the old toolbox of mass testing and isolation, and the social and economic costs of applying increasingly stringent measures to achieve this are rapidly mounting,” chamber president Joerg Wuttke said in the letter obtained by the South China Morning Post.
“This is also having an unfortunate impact on China’s image to the rest of the world, while eroding foreign investors’ confidence in the Chinese market.”
The European Chamber understands that … the decision to pursue a zero-tolerance strategy was not taken lightly
The chamber raised three proposals to revise the current pandemic-control measures, “to bring them in line with the successful model that has been adopted in Singapore, which has allowed the country to simultaneously prioritise protection for all its citizens and economic growth”.
It suggested allowing positive cases with no or mild symptoms to quarantine at home, to alleviate pressure on the health system, and also called for stepping up efforts to fully vaccinate the population, including those over 60 years old who are among the most vulnerable.
“The European Chamber understands that the protection of health and safety is of paramount importance, and that the decision to pursue a zero-tolerance strategy was not taken lightly,” Wuttke added.
‘Final nail in the coffin’: forceful lockdowns weigh on EU firms in China
He cited the results of a flash survey by the German Chamber of Commerce in China last month as proof that the measures being taken to contain Omicron’s spread are “causing significant disruptions, extending from logistics and production all the way along the entire supply chain within China”.
While reaffirming its commitment to the Chinese market, the EU chamber also warned that the uncertainties in business operations would lead to the loss of expatriates and tarnish the country’s appeal to foreign talents.
01:27
Shanghai’s citywide Covid-19 lockdown spurs race to stockpile food across China
With much of Shanghai under lockdown for more than a week, the strict measures have resulted in a swell of public discontent and complaints from business communities.
The EU chamber told the Post on Monday that its letter from last week “outlines the challenges that companies are facing due to Covid-19 containment measures that have recently been implemented across China”.
“The European Chamber is keeping in touch with the relevant authorities and is looking forward to following up on the contents of the letter at the earliest opportunity,” it added.
