The Washington Post
U.S. companies cut China investments
American businesses in China are slashing investments and lowering revenue projections as coronavirus lockdowns hit operations and supply chains, a survey shows.
More than half of the 121 companies polled by the American Chamber of Commerce in China have either reduced or delayed investment in the country, while nearly 60 percent of them lowered their income forecasts for this year following the latest outbreaks, according to a statement.
New virus clusters emerging across China since March have led to stringent lockdown measures, causing a sharp contraction in economic activities and a slowdown in export growth.
Top leaders have also defended the “zero covid” strategy that seeks to eliminate all infections.
More than 15 percent of the U.S. companies with operations in Shanghai — which has been under lockdown for more than a month — reported their business there remains fully shut, according to the survey conducted between April 29 and May 5.
Nearly 60 percent of the respondents, who have operations throughout China, said production capabilities were slowed or reduced because of a lack of employees, difficulty in getting supplies or governmentordered lockdowns.