China’s coronavirus controls top concern for European firms, who may ‘vote with their feet’ if uncertainty persists
- Beijing’s stringent approach to containing Omicron outbreaks is the biggest challenge for European businesses in China, a new survey shows
- Some 23 per cent of European firms are considering shifting current or planned investments out of the country, the highest proportion in a decade
Strict coronavirus controls have surpassed rising labour costs, slowing economic growth and tensions with the United States to become the top concern for European businesses in China for a second year running, according to a report released on Monday.
The uncertainty generated by recent lockdowns in cities across China has also forced many to rethink future investment in the world’s No 2 economy, the European Union Chamber of Commerce in China said.
“The current situation has given many pause for thought, and some may vote with their feet should the current wave of uncertainty continue, especially when other markets offer more predictability,” the chamber said.
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