US firms in China praise quarantine cut, but coronavirus restrictions still weigh heavy on confidence

Name: Students in Beijing return to class as Covid-19 wanes in Chinese capital
Uploaded: 2022-06-30T09:16:02.000Z
Duration: 2 min 1 s
Description: Students in Beijing return to class as Covid-19 wanes in Chinese capital

US firms in China have reported small improvements in supply chain logistics and business recovery, AmCham China survey shows

But a ‘plethora of issues’ remain, including inconsistent implementation of coronavirus rules across different provinces, the group says

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Beijing has stepped up efforts to placate frustrated US and European firms in China over the past two months. Photo: AFP

Ananta Agarwal

Published: 5:16pm, 30 Jun 2022Updated: 5:58pm, 30 Jun 2022

US companies in China have reported marginal improvements in business conditions, but inconsistent coronavirus restrictions across the country continue to pose a challenge to supply chains and production, the American Chamber of Commerce in China (AmCham China) said on Thursday.

China has stepped up efforts to placate a frustrated foreign business community over the past two months, streamlining communication, easing interprovincial travel restrictions and, this week, reducing quarantine for overseas visitors to seven days at a government-run facility.

While a host of issues remain, there are signs Beijing’s efforts are making progress with foreign investors.

Of the 102 companies surveyed by AmCham China, 45 per cent reported continued disruptions to their transport and shipping networks in June, but that was a 16 percentage-point decrease compared to May.

Businesses in Shanghai also reported improvements in supply chain logistics after the city emerged from a stringent two-month lockdown on June 1. Some 23 per cent of respondents reported little to no business recovery this month, compared to 60 per cent in May.

AmCham China said the reduction in quarantine time for all inbound passengers was “a step in the right direction”, but “plethora of issues” remained, including inconsistent implementation of coronavirus rules across different provinces.

Citing an example from their own office in Beijing, AmCham China chairman Colm Rafferty said that when five employees were identified as being exposed to Covid-19, each of them received separate directives from their local neighbourhood committees. These ranged from Covid tests to 10 days quarantine.

“That is a huge difference for any company to manage,” said Rafferty, adding that “a higher degree of predictability and consistency” in policy enforcement is needed.

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Students in Beijing return to class as Covid-19 wanes in Chinese capital