Business News Asia
A survey conducted by the U.S.-China Business Council found that American companies’ positive attitudes toward China have fallen to a record low. The zero-tolerance measures have forced more than half of the companies operating in China to postpone or cancel their investments in China.
The survey indicates that the use of lockdown measures to control the spread of COVID-19 has caused concern among U.S. companies investing in China, given the strained relations between China and the United States. Of the companies surveyed, only 51% were positive about the five-year business outlook in China. This number is down from 69% in last year’s survey.
The U.S.-China Business Council is a non-governmental organization representing more than 270 U.S. companies operating in China. U.S. companies in China will likely be forced to suspend some production under lockdown measures, and the implementation of these controls will affect consumer demand, resulting in a loss of investor confidence in the sector.
No less than 96% of U.S. companies have been affected by the coronavirus lockdown, and more than half of them have had to suspend or postpone their investments in China.
In addition, survey results indicate that new investment by U.S. companies in China is expected to decline in 2023 due to the impact of COVID-19 containment measures. Other Chinese measures, including data and cybersecurity measures, will make it more difficult to sell products to government agencies.