{"id":10107,"date":"2022-04-30T08:00:16","date_gmt":"2022-04-30T08:00:16","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=10107"},"modified":"2025-04-23T09:41:36","modified_gmt":"2025-04-23T09:41:36","slug":"what-is-the-impact-of-covid-19-on-british-businesses-in-china","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/what-is-the-impact-of-covid-19-on-british-businesses-in-china\/","title":{"rendered":"What is the impact of Covid-19 on British businesses in China?"},"content":{"rendered":"

Two years into the Covid-19 pandemic, how are China\u2019s Covid-19 control measures affecting British businesses in China? If the zero-Covid approach remains in place, how will it affect operations, revenue and hiring for British businesses? A new survey published by the British Chambers of Commerce in China<\/strong> finds out<\/h2>\n

Over the past two years, China has developed and managed effective Covid-19 control measures. Rapid lockdowns, quarantines, mass testing and travel restrictions have helped ensure China has been able to keep Covid-19 outbreaks under control. For everyone in China, the policies have allowed us to work and live safely with minimal risk of infection, and for our businesses to operate, albeit with barriers to travel to and from China.<\/p>\n

China now finds itself in the midst of the worst outbreak of Covid-19 since 2020. Circumstances in China have led policymakers to maintain strict zero-Covid policies which are now affecting business confidence in the country. This follows the recent outbreaks, most notably the very challenging situation seen in Shanghai. The risks facing many British businesses operating in China today are at their highest since 2020, as a recent survey conducted by the British Chamber of Commerce in China shows.<\/p>\n

\"Launchpad<\/a><\/p>\n

BritCham China conducted a survey of its members from 6-14 April 2022, receiving over 200 responses from start-ups, small-medium enterprises and multinational corporations. Multinational corporations constituted 44% of the total respondents, while 43% of respondents were SMEs. The vast majority of respondents reported that their operations in Shanghai (68%), Beijing (34%), Shenzhen (21%) and Guangzhou (19%) had been the most affected. The highest representation of companies is in education (19%), followed by business advisory and business services (11%) and food and beverage (8%).\u00a0<\/span><\/p>\n

Overall impact of Covid-19 and general outlook<\/strong><\/h4>\n

The overwhelming sentiment expressed by respondents was that the impact of recent outbreaks of Covid-19 on British businesses in China has been severe: 74% of businesses reported a \u201cvery serious\u201d or \u201clarge\u201d impact on day-to-day business, business operations and cash flows. Almost no companies reported \u201cno impact\u201d or a \u201cpositive impact\u201d.<\/p>\n

\"\"<\/p>\n

If the current Covid-19 restrictions were to remain in place for the next year, surveyed businesses expected a reduction in:<\/p>\n

    \n
  1. Revenue and profit (68% of responses)<\/li>\n
  2. Expatriate and local staff (57% of responses)<\/li>\n
  3. Investment (34% of responses)<\/li>\n
  4. Local (China) operations (34% of responses)<\/li>\n<\/ol>\n