China’s coronavirus controls are ‘throttling US business confidence’, American lobby groups says

A new survey from the American Chamber of Commerce in China shows growing dissatisfaction with authorities’ handling of the latest outbreak

Nearly 60 per cent of American firms surveyed are cutting revenue projections this year and say attracting foreign talent is becoming difficult

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China’s hardline coronavirus containment strategy is weakening foreign investor confidence. Photo: Bloomberg

Published: 6:38pm, 9 May 2022

China’s heavy coronavirus restrictions continue to undermine confidence among US businesses operating in the world’s No 2 economy, according to a survey released on Monday, echoing complaints from European firms which say the country is losing its lustre as an investment destination.

Chinese authorities have in recent months imposed stringent virus controls, including lockdowns in Shanghai and Shenzhen, in a bid to stamp out the country’s worst outbreak in more than two years.

While the government’s zero-Covid policy had success in early 2020, the hardline strategy is now weakening investor confidence and raising questions about China’s ability to reach its 2022 economic growth target of “around 5.5 per cent”.

The results of a new survey from the American Chamber of Commerce in China (AmCham China) show growing dissatisfaction with authorities’ handling of the outbreak.

All 121 companies surveyed between April 29 and May 5 said they have been affected by the government’s Covid-19 policies.

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