Covid-19 outbreaks put China’s supply chain in the spotlight again, as foreign firms demand ‘solutions’
- Covid disruptions could fray the nerves of foreign investors, while accelerating diversification plans among multinationals
- Some coastal authorities in provinces like Guangdong are scrambling to keep as many workers as possible to fulfil overseas orders
China is racing against time to stabilise its workforce and domestic production, as widespread Covid-19 infections test the country’s capability to fulfil overseas orders and threaten its status as the world’s pre-eminent manufacturing hub.
Fresh virus outbreaks have put China’s supply chain in the spotlight once again, sparking concern that disruptions could fray the nerves of foreign investors further, while weakening the country’s competitiveness and accelerating diversification plans among multinationals.
“Since the 2022 lockdowns of zero-tolerance, China has basically opened the door in other countries for foreign investment,” Joerg Wuttke, president of the European Chamber of Commerce in China, said in an interview.
“We actually don’t wait for China to bring meaning to these nice words because we have been looking elsewhere for solutions.”
He called for concrete actions from the government to deliver on commitments to reform and opening up.
“The thing that we really have to stress now is that deeds have to follow words, and they have to walk the talk,” he said. “And if that is not going to happen, the future of investment in China is going to be challenged in many cases.”