[Epoch Times, May 30, 2022](The Epoch Times reporters Fang Xiao and Luo Ya interviewed and reported) The two-month lockdown of the city has hit Shanghai’s economy hard and made foreign companies consider withdrawing from China. Shanghai officials recently announced the lifting of “unreasonable” restrictions on businesses. But experts say that the CCP is facing irreversible pressure, and the withdrawal of foreign capital from China may become the norm.
Based on the “Shanghai Action Plan for Accelerating Economic Recovery and Revitalization” released by the Shanghai official at a press conference on May 29, Shanghai will cancel the approval system for enterprises to resume work and production from June 1, and at the same time introduce a series of policies to stabilize foreign investment , promote consumption and expand investment.
The plan also mentioned “multiple measures to stabilize foreign investment and foreign trade”, including supporting foreign-funded enterprises to resume production and operation, implementing dedicated tracking services, helping key foreign-funded enterprises to resume work and production, and effectively stabilizing the development expectations of foreign-funded enterprises.
Shanghai has also introduced policies and measures to expand the scope of corporate epidemic prevention and disinfection subsidies, establish a mutual guarantee mechanism for the industrial chain and supply chain in the Yangtze River Delta, and smooth domestic and international logistics and transportation channels.
The two-month lockdown in Shanghai, a business hub of 25 million people, has severely damaged the economy, with many residents losing income and having difficulty accessing food and medical aid.
The European Union Chamber of Commerce in China released a survey report on May 5, showing that China’s attractiveness to European companies has been greatly reduced. The severe business environment has caused nearly a quarter of companies to consider withdrawing from China, and companies with the idea of leaving within two months The rate has doubled, and the rate of European businessmen wanting to leave has hit a ten-year high.
The willingness of American businessmen to withdraw is also high, and many business operators in Shanghai report that they are actively arranging trips to return to China. According to a survey published in mid-March by That’s Shanghai magazine, the English edition of City Walk, a total of 85% of foreigners in Shanghai reconsider their travel plans due to the lockdown measures. In addition, 48% plan to leave China in 2023, and 37% choose to wait and see whether the epidemic prevention measures are adjusted. Overseas companies are avoiding Chinese investment projects.
Chinese Premier Li Keqiang held a teleconference on “stabilizing the national economy” last week, asking local governments to “solidly promote the implementation of various policies to stabilize the economy” in the context of repeated epidemics and increasing downward pressure on external demand.
According to the website of the Shanghai Municipal Health Commission, Mayor Gong Zheng conveyed the spirit of the meeting on the 29th, saying that the past three months have been extremely difficult days in Shanghai. In the face of the unprecedented severe and complex epidemic situation… We must do our best to recover the time and losses caused by the epidemic.
Expert: Pressure on China is irreversible
Xie Jinhe, chairman of Taiwan Caixin Media, said in an interview with The Epoch Times on May 30 that the pressure China (the CCP) is now facing is irreversible. First, China became the factory of the world, but the wages of workers were very low, and the price of land in China had risen staggeringly. China is no longer a preeminent production base, and the high cost of production will cause foreign capital to start withdrawing.
The second is China’s zero-clearing policy, which has adopted a closed city policy in various places, and is currently unblocking internationally. People are slowly realizing that in the past, the world has concentrated too many production bases in China, and this risk is now starting to emerge. “I believe that after this epidemic, the withdrawal of foreign capital from China will become the norm.”
He said that Li Keqiang made a high-profile statement this time to save the economy, and the most important thing is that he has seen the pace of foreign capital withdrawal. With the accelerated withdrawal of foreign capital from China, the damage to China’s economy will become more apparent. After the closure of the city, it will cost more to restore the production line. It is not a difficulty that can be overcome in a short time, and it will take a long time for economic adjustment.
The public: The dynamic clearing policy is harmful to others and not to ourselves
Mr. Chen, a citizen of Fengxian District, Shanghai, told the Epoch Times reporter on May 29 that during the closure of Shanghai, citizens were not allowed to go to work, all traffic was shut down, roads were cut off, called hard isolation, and expressways were also blocked. The main reason for Shanghai’s economic decline is these reason.
Mr. Chen said that the dynamic clearing policy is harmful to others and detrimental to oneself. It kills economic activities, the government does not benefit, the common people are also suffering, and the officials are also suffering. But officials must do so and be faithful to the above table.
Regarding the resumption of work and production in Shanghai, Mr. Zhou from Pudong District told reporters that now the community is letting people out, but not letting them come back. It is said that they are afraid of reopening, and if positive people are found, they will be closed again. The company cannot withstand such toss. “For businesses, if you come to work with me, arranging meals is a trivial matter. But you need a place to live.”
Mr. Zhou believes that some small enterprises are conservative and are willing to delay the resumption of work for a period of time (later than June 1), lest just start work, there will be positive people again, and the enterprise will face a complete collapse.
The WeChat official account “Zhou Chaochen” posted on the 30th that although Shanghai officials said that “the approval system for the resumption of work and production of enterprises will be cancelled from June 1,” I saw a circle of friends on the afternoon of the 29th saying that after the Shanghai press conference, a park in Shanghai Someone in the group of merchants asked: “Are we going to fully resume work?” The answer was: “The resumption of work in the park and the enterprises in the park is divided into two stages. First, the resumption of work in the park, and then the resumption of work by the enterprises in the park.” The application materials for resumption of work have been submitted, and they will enter the park to resume work after the approval of the relevant departments.” According to the worker in the park, the current stage is still closed management, and all the returning workers can eat and live in the unit, and can only enter and not…
The Shanghai authorities said that from the early morning of June 1, people entering public places with clear epidemic prevention requirements and taking public transportation must hold a negative nucleic acid test certificate within 72 hours. Those leaving Shanghai must provide a negative nucleic acid test certificate within 48 hours and a negative antigen test certificate within 24 hours.
Responsible editor: Lin Congwen#