Though China’s Zero-Covid policy is affecting businesses there, the European Union (EU) Chamber of Commerce predicts that the Chinese regime will not change its strategy at this stage.
Joerg Wuttke, president of the European Union Chamber in China, discussed the COVID-19 pandemic and its impact in an interview on Bloomberg on May 2.
The discussion comes after data showed that China’s manufacturing and services plunged last month. The April data were the worst since the start of the COVID pandemic in February 2020.
Bloomberg host Dani Burger asked if it is possible to turn that picture around if the Zero-Covid policy is still being enforced in China.
Wuttke said that his chamber sees no change in the Zero-Covid policy, adding that Beijing may be the next city to impose lockdowns after Shanghai. Other cities may follow suit if the pandemic hits them.
According to the EU Chamber president, China vaccinated its people better, and some people urged the country to join the world in opening up again; he does not see it happening at this stage.
Wuttke said, “They are trapped in their past success story of zero tolerance and they possibly find it very difficult to get out of it.”
Regarding the investment climate in China, Wuttke said that European companies are not leaving the country. However, they will pause any additional investment because of the geopolitical uncertainty.
Wuttke said that some businesses could relocate to Jakarta, Manila, or Singapore, but China cannot be replaced. He added, “There is no second China.”