Here’s how China’s latest Covid lockdowns have affected American businesses in the country

Here’s how China’s latest Covid lockdowns have affected American businesses in the country


The metropolis of Shanghai, where many foreign businesses are located, entered a two-part lockdown this week as municipal authorities sought to control an outbreak in China’s worst Covid wave in two years.

Hector Retamal | Afp | Getty Images

BEIJING — China’s worst Covid wave since the initial shock of the pandemic has cut into annual revenue projections for roughly half of American businesses in the country, a survey showed Friday.

The Beijing-based American Chamber of Commerce in China and its Shanghai counterpart surveyed 167 members operating in China, including 76 manufacturers, this past Tuesday and Wednesday.

The metropolis of Shanghai, where many foreign businesses are located, entered a two-part lockdown this week as municipal authorities sought to control a brewing number of Covid cases. Those measures followed shorter lockdowns in the tech hub of Shenzhen, the manufacturing hub of Dongguan and travel restrictions across the country.

The survey found that 54% of respondents have lowered 2022 revenue projections for the year due to the latest Covid-19 outbreak.

Among manufacturers, more than 80% reported slowed or reduced production, as well as supply chain disruptions.

Nearly all, or 99%, of respondents said the latest outbreak had affected them.

Since the pandemic began in 2020 and China tightened restrictions on international travel, foreign businesses in China have complained of long quarantine requirements upon arrival and difficulties of bringing in senior management or technical staff.

If China’s current Covid-19 restrictions remain in place for the next year, half of respondents to this week’s AmCham survey said they would reduce investment. Nearly 75% of respondents said maintaining those restrictions would reduce their revenue and profit.

And nearly 20% of manufacturers said they would move manufacturing or operations out of mainland China if the Covid-19 restrictions remained.

Read more about China from CNBC Pro

While just about half of respondents overall were satisfied with China’s efforts to control Covid’s spread, the top three aspects of dissatisfaction were the length of required quarantines, restrictions on travel to China and the lack of flights to China.

The top three recommendations from survey respondents were to allow for home quarantine or other options, simplify requirements for coming to China and allow more flights into the country.

The number of new Covid cases and deaths reported in mainland China remains well below that of major countries.



Source

UK economy contracts again in May, missing expectations for slight rebound
World

UK economy contracts again in May, missing expectations for slight rebound

London. Dukas | Universal Images Group | Getty Images The U.K. economy shrank again in May, data showed Friday. The latest monthly growth figures from the Office for National Statistics showed U.K. gross domestic product (GDP) contracted 0.1% month-on-month in May. Analysts polled by Reuters had expected a 0.1% expansion. The latest data follows a […]

Read More
This CEO’s startup has raised  million and is backed by Sundar Pichai. He shares his ‘superpower’ tip for aspiring entrepreneurs
World

This CEO’s startup has raised $92 million and is backed by Sundar Pichai. He shares his ‘superpower’ tip for aspiring entrepreneurs

Caesar Sengupta, co-founder and CEO of Arta Finance. Courtesy of Arta Finance Given the ups and downs of the startup journey, the biggest “superpower” that entrepreneurs can have is the ability to ground themselves, said Caesar Sengupta, co-founder and CEO of fintech startup Arta Finance. “There’s so much noise in the world,” Sengupta told CNBC […]

Read More
Trump readies blanket tariffs as he brushes off inflation worries
World

Trump readies blanket tariffs as he brushes off inflation worries

US President Donald Trump during a cabinet meeting at the White House in Washington, DC, US, on Tuesday, July 8, 2025. Aaron Schwartz/CNP/Bloomberg via Getty Images President Donald Trump on Thursday said that he plans to impose blanket tariffs of 15% or 20% on most trade partners, dismissing concerns that further tariffs could negatively impact the stock […]

Read More