EU firms to consider moving investments in China elsewhere due to COVID-19 controls

European businesses in China are increasingly looking to shift their investments to other markets due to the country’s strict COVID-19 containment measures and supply chain disruptions, the European Chamber of Commerce in China said on Thursday.

A member 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.

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“Our members are weathering the storm for now, but if the current situation continues, they will increasingly evaluate alternatives to China,” said the chamber’s president, Jorg Wuttke.

Lockdown measures have disrupted supply chains, with 92 percent of respondents saying they had been negatively impacted by recent port closures, decreased road freight and rising sea freight costs.

As of Tuesday, 43 cities are under full or partial lockdowns or have implemented district-based controls, which involve strict mobility restrictions for local residents, according to Nomura.

Read more: China COVID-19 outbreaks, tough curbs threaten to derail world’s emerging markets