Coronavirus: European firms call for exit plan, vaccination roll-out to end China’s ‘dire’ Covid curbs
- The European Chamber of Commerce in China has called on the mayor of Beijing to impose clear road maps and timetables for vaccination roll-out
- Regions contributing one fifth of the Chinese economy are now under lockdown, up from 9.5 per cent a month ago, according to recent estimates
Beijing’s “overzealous” implementation of its zero-Covid strategy, lack of an exit plan and slow vaccination rates among the elderly are making foreign companies increasingly frustrated, with the “dire situation” forcing expatriates to consider leaving China, foreign business chambers have warned.
The European Chamber of Commerce in China, an influential business lobby group, sent a letter to the mayor of Beijing on Thursday calling on the government to “establish clear road maps and timetables for a comprehensive vaccination roll-out”.
But the lack of transparency about the measures and inadequate preparation have severely disrupted business operations and daily life.
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“This is very concerning, given that Shanghai’s experience from earlier this year has shown that after long-term lockdowns, many foreign nationals are likely to leave China. This would be detrimental to Beijing’s goal of developing into an international city,” the European Chamber said in the open letter.
Speaking at a webinar organised by the European chamber on Friday, Erich Kaiserseder, a board member of the group’s Shenyang chapter, said people are getting “really frustrated with the uncertainties and the current lockdowns”.
He said many people are thinking about returning to Europe.
Beijing’s zero-Covid strategy is one of the key factors haunting foreign investors and domestic entrepreneurs this year.
We cannot hold the economy and the social fibre of this country hostage
“We need an exit ramp, which is clearly outlined with milestones to gain the confidence of the people,” said Joerg Wuttke, president of the European chamber, adding Beijing must change its publicity and vaccination tactics.
“We cannot hold the economy and the social fibre of this country hostage to a couple of people unwilling to do vaccinations.”
Wuttke expressed concern about the high spending on mass testing.
“Three tests are as expensive as one jab. So the fact that China spent US$230 billion last year on testing could give you an indication how easy it would be for them to shift from testing to vaccination,” he said.
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The European chamber also called for an extensive education campaign on the benefits of vaccination to reassure the public and formulate programmes that accelerate the administering of booster shots.
“Optimise existing epidemic prevention measures and actively learn from successful foreign epidemic prevention models, such as Singapore,” the letter said.
Wuttke also noted the lack of initiative to address problems related to coronavirus in meetings he had had with officials.
“There seems to be a kind of a wait-and-see attitude … until someone upstairs makes up his mind to move from zero tolerance to something else,” he said.
“That’s very worrisome because you lose time and zero tolerance is, in essence, a tool to buy time.”
A one-size-fits-all approach has led to unpredictable lockdowns
But many foreign investors say interpretation of central government policy varies widely city to city and even district to district.
Separately, the French Chamber of Commerce in China also issued an open letter on Thursday criticising implementation of new rules.
“A one-size-fits-all approach has led to unpredictable lockdowns and a large increase in the number of people recently quarantined or homebound, seriously affecting the daily work of companies in China,” it said.
“We call on authorities to implement the 20 measures and to eradicate unnecessary and overzealous restrictions. Above all, we reiterate the wish of French enterprises to see the elaboration of a clear exit strategy from the zero-Covid policy at some point in the near future.”
