The Financial Times reported that the head of the U.S. business lobbying agency in China warned that as the Chinese Communist Party (CCP) tightens its control of COVID-19, Western executives are withdrawing from the world’s largest consumer market.
Today, as the rest of the world has reopened, American business leaders, including Mr. Ker Gibbs and Alan Beebe, Presidents of the American Chambers of Commerce in Shanghai and Beijing, are warning the CCP that the evacuation of foreigners from China may accelerate.
The British Financial Times also cites a recent survey of 338 American Chamber of Commerce members in Shanghai. The survey shows that more than 70% of companies have difficulty in attracting and retaining foreign talent. “Restrictions related to travel visas,” have become the main issue.
China’s strict entry quarantine policies include the abolition of tax incentives enjoyed by foreigners for decades; the rising cost of living in Chinese cities. Power shortages, power cuts, and increases in electricity prices, along with the CCP’s relentless surveillance, are also essential factors in driving foreign executives to return to their home countries.
China is still conducting a policy of “Zero COVID-19”. Anxious foreigners, uncertain of how long they would be locked up in their houses, quickly fled.
TFI Global points out that the flight of investors from China is due to the strict blockade by COVID-19, government surveillance, and a series of repressive economic policies implemented by the authorities.
Since last November, China has launched an all-out attack against businesses, companies, and entrepreneurs. The technology industry, education and training, private schools, and most private companies are “harvested” by the government. In the face of such anti-trade measures, investors will inevitably flee from China to escape the dictatorship.
Foreign media concluded that Japanese and Korean companies, seeing no sign of China’s economic growth in the future, withdrew from China under subsidies from their governments.
U.S. companies also decided to leave, even without government subsidies. For example, Walmart has moved Asia’s global supply hub from China to India. Even European companies that don’t want to give up on the Chinese market have begun to move their production lines out.
On the Chinese stock market, corporate capital can be wiped out at any time without any warning. As a result, the Chinese tech giants are no longer trusted in the stock market and have shrunk considerably.
TFI Global said China’s stock market is as unpredictable as the CCP. As a result, traders are all playing a game of life and death, no matter how they deal with the market.
International geopolitics scholar Ranveer Singh Ranhotra believes that under the CCP’s iron fist, foreigners and their companies will withdraw from China, hastening China’s defeat.
At the same time, if the Chinese people realize the unbelief and incompetence of the CCP, the rate of the party’s demise will be faster.