620 EU companies in China were surveyed by the European Union Chamber of Commerce in Communist China, and the results were: 83% said they had been harmed by the Chinese Communist Party’s (CCP) “Zero-Covid” policy, and 60% of the respondents calculated a profit loss between 6% and 15% at the end of the year. 94% condemned the negative impact of the tough zeroing policy on logistics; 92% said the restrictions had harmed supply chains, and 85% said they had difficulty sourcing raw materials and manufacturing components. Restrictions on business travel make it difficult for European managers to enter Communist China to assess the situation and make decisions on possible investments.
But even for those Europeans who are not in Communist China, the CCP’s restrictions are a financial burden. For example, three-quarters of the companies surveyed said they were directly affected by the CCP’s “Zero-Covid” policy.
The vice president of the EU Chamber of Commerce in Beijing said that at this time, not only the CCP virus pandemic is the issue unsettling EU companies but also the CCP’s foreign policy on the Russia-Ukraine war is having a considerable destabilizing effect on the European companies’ business in Communist China. Some companies are considering investing in other markets like Thailand and Vietnam, which have greater predictability.