China Covid-19 Outbreak Disrupting Supply Chains, Manufacturing, Investment, Staffing — AmCham Survey

Near deserted streets in the Puxi area of Shanghai, China, on Saturday, April 2, 2022. Shanghai’s 25 … [+] million residents are almost all under some form of lockdown as the financial hub scrambles to tame a relentless surge of the coronavirus’s highly contagious omicron variant. Photographer: Qilai Shen/Bloomberg

© 2022 Bloomberg Finance LP

Covid-19 outbreaks in China are having an impact on supply chains, manufacturing, revenue, investment and staffing among members of the American Chamber of Commerce in Shanghai and American Chamber of Commerce in China, a joint survey by the two released on Friday found.

Overall, 99% of respondents said they had been impacted by the recent outbreaks, according to the survey conducted March 29-30. The survey was answered by 167 member companies, of which 120 have operations in Shanghai. Shanghai – one of Asia’s most important business hubs – and Jilin Province have been hit by outbreaks. The Chinese mainland reported 2,086 new locally-transmitted Covid-19 infections on Friday, compared with 1,787 a day earlier, the National Health Commission said Saturday. Of the local cases reported Friday, 1,730 were in Jilin, 260 in Shanghai, and 21 in Heilongjiang, Xinhua news agency said.

Here are excerpts from the summary of the survey findings provided by the two AmChams:

Production: 60% of respondents reported slowed or reduced production because of a lack of employees, inability to obtain supplies, or government-ordered lockdowns. Among manufacturers, 82% reported slowed or reduced production.
Supply chains: 57% of respondents reported that the recent Covid-19 outbreak had disrupted their supply chains due to disruptions in transportation and shipping networks. Among manufacturers, 86% said their supply chains had been disrupted.
Revenues: 54% of respondents have decreased 2022 revenue projections following the recent Covid-19 outbreak, while an additional 38% say that it’s too early to estimate the impact on revenues.
Investment: 29% of respondents have delayed investments because of the recent Covid-19 outbreak, while an additional 17% have decreased investments. Another 30% say it’s too early to tell how their investments will be impacted. However, 49% of companies will reduce investment if China’s current Covid-19 restrictions remain in place into the next year.
Foreign staff: 81% of companies reported that China’s management of Covid-19 had impacted their ability to attract or retain skilled foreign staff, with 35% describing the impact as either large or severe.
China’s Covid-19 management: 51% of respondents are satisfied with China’s efforts at controlling the spread of Covid-19. However, 77% of respondents are not satisfied with the length of quarantines, and 69% are not satisfied with restrictions on travel to China.

See related post:

New AmCham Shanghai Survey Finds U.S. Multinationals “Bullish On China”

@rflannerychina

Source link

Related posts

Up 19% In A Month, Will Caterpillar Stock Continue To See Higher Levels?

businesegoal

4 Steps To Help Your Kids Build Smart Money Habits

businesegoal

Instructions to Identify Money-Making Opportunities During Economic Downturns

businesegoal

Leave a Comment