China Protests Might Have Come At A Bad Time For Foreign Firms

For foreign companies that operate in China, the unprecedented protests at the weekend could not have come at a worse time.

Eko Hot Blog reports that It has been almost three years of intermittent lockdowns, disrupted supply chains, and rules that have made the country uninviting to international staff. The last year has been particularly painful – as the rest of the world opened up and learned to live alongside the virus.

EDITOR’S PICKS

“In my 12 years of being in China, I have never seen the levels of social and economic disruption. The extraordinary civil unrest taking place at the moment is all due to zero-Covid fatigue,” the British Chamber of Commerce’s Managing Director Steven Lynch said.

“This is the lowest level of sentiment we’ve ever experienced, certainly for British businesses.”

Protests and political instability are not good for business. But it is the Covid numbers in China that are really rattling investors.

FURTHER READING

Recent days have seen about 40,000 new cases – record highs for China – and with authorities determined to stamp out infections according to President Xi Jinping’s zero-Covid strategy, that could mean more disruption to manufacturing, services, and normal consumer behaviour.

Source: BBC

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