China’s strict Covid-19 lockdowns, containment measures and other disruptions could drive out European businesses, the European Union Chamber of Commerce in China said on Thursday, citing a survey of its members.
Lockdown measures have disrupted supply chains, with 92% of respondents saying they had been negatively impacted by recent port closures, decreased road freight and rising sea freight costs.
The survey found that almost a quarter of respondents were considering moving current or planned investments out of China, more than double the number at the start of the year.
“Our members are weathering the storm for now, but if the current situation continues, they will increasingly evaluate alternatives to China,” the chamber’s president Jörg Wuttke said.
As of Tuesday, 43 cities are under full or partial Covid lockdowns or have implemented district-based controls, which involve strict mobility restrictions for local residents, according to Nomura analysts.
• Reuters, with additional editing by George Russell
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