Beijing / Shanghai: The ‘Zero Covid Policy’ being implemented by China to curb the Coronavirus pandemic has led to growing resentment in the industry. Foreign companies operating in China have signalled a reduction in investment as well as manpower. Whereas, many small companies in China are reportedly on the verge of closing down. Besides, analysts have said this could lead to a sharp rise in unemployment in China and hurt its economic growth.

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In the last few months, there have been frequent outbreaks of Coronavirus in leading cities, including various provinces, in China. Since the beginning of March, many corona patients have been found in Shanghai, known as the main centre of the Chinese economy. The new outbreak has not stopped entirely and new patients are being found in the capital, Beijing, and in Shanghai, the economic and commercial hub. China’s ruling regime had implemented the ‘Zero Covid Policy‘ during the previous Coronavirus pandemic. The same has been repeated this year as well.

However, this policy implemented by the Chinese communist regime has provoked strong resentment from ordinary citizens and industry. Many young people in China have lost their jobs because of this policy. Many small and medium enterprises have started cutting down on the number of jobs as they have no idea how long the restrictions will last. This has made it even more difficult to find new jobs. Along with local industries, foreign companies have also signalled a reduction in manpower. Leading companies like Tesla have cancelled three job fairs.

Moreover, Foreign industries also face a shortage of manpower working in China. Many employees and officials who have returned home due to strict restrictions in China have refused to return to China. As a result, foreign companies are beginning to face a shortage of skilled workers and officers. Against this backdrop, surveys by US and European groups have revealed that foreign companies are seriously considering exiting China and reducing investment.

Furthermore, the American Chamber of Commerce in China contacted about 167 companies. 99% of the companies admitted to being hit by the ‘Zero Covid Policy’. More than 50% of companies indicated a reduction in revenue, while 36% said they had decided to cut investment. 60% of the companies reported that they were cutting production. The EU Chamber of Commerce said 23% of European companies claimed to exit China in the near future.

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