The American Chamber of Commerce (AmCham) in Shanghai released a June Covid Impact Survey report on June 15. The results show that just below a quarter of local U.S. companies have cut their investment plans, while 93% are reducing their revenue projections for the year.
According to Channel NewsAsia, the pessimistic results of this survey by AmCham Shanghai are the latest example of the impact of Beijing’s anti-epidemic policies. China is the only major economy still pursuing Zero-Covid, trying to eliminate all outbreaks through lockdowns and mass testing.
The survey was conducted between June 7 and June 9 with 133 member companies. Sixty-nine respondents come from the manufacturing sector, while the rest operate in the consumer and services sectors.
Just above a quarter of manufacturers reported speeding up the localization of their China supply chains while moving production of global goods to other countries.
Only 35% of the manufacturers were operating at full capacity in early June.
Nearly three-quarters of respondents had not enjoyed economic support measures since the financial hub’s lockdown.
Eric Zheng, head of AmCham Shanghai, said that the shutdown had had a “profound” impact on enterprises.
He added, “The Shanghai government must act quickly to ensure unhindered supply chains, logistics and worker mobility and to accelerate the provision of financial support to businesses.”
AmCham in Shanghai, known as the “Voice of American Business” in China, was established in 1915. This non-profit, non-partisan business organization was the third American Chamber founded outside the U.S. and now has 3,000 members from over 1,300 companies.