Shanghai business optimism hits record low as Covid controls linger
More than half of the Chinese companies surveyed by a leading US business lobby in Shanghai believe the country’s economic management is deteriorating.
The American Chamber of Commerce in Shanghai called for a relaxation of China’s strict zero-Covid policy as it found that around a fifth of the 307 companies it surveyed were pulling back on investment, mostly as a result of coronavirus measures.
Although 55 per cent of the businesses remained optimistic over a longer term horizon of a three-to-five year period, this was the lowest level since the survey began in 1999.
Factories in China have often resorted to so-called “closed loop” systems, where workers do not leave the site in order to continue working under lockdowns. This week, viral videos circulated of workers saying they were unable to access supplies at a factory of Foxconn, which makes Apple iPhones.
This story originally appeared on: Financial Times - Author:Thomas Hale
