China’s Export Companies Hit Hard by Ccp’s Zero-Covid Policy
China’s Export Companies Hit Hard by Ccp’s Zero-Covid Policy
Udumbara
China’s Export Companies Hit Hard by Ccp’s Zero-Covid Policy
As the manufacturing chain gradually shifts to Southeast Asia and other countries, Chinese foreign trade enterprises have been losing orders in recent years. Beijing's insistence on the "zero-COVID" policy has further exacerbated the pace of foreign investment exodus from China. As a new outbreak of the epidemic resumed in many parts of China, the strict closure restrictions on the transportation of raw materials and finished products caused cost increases and delays in supply, resulting in a sharp drop in orders for many exporters in July.
Recently, Dongguan City, Guangdong Province, once known as China's manufacturing base, has continuously reported that companies are closing business or taking long holidays; while Yiwu City, the manufacturing and export center in eastern China, has closed down since August 11. Logistics and express delivery ceased operations. A large number of local private small and medium-sized enterprises have been disrupted by official administrative orders during the export season, which added salt to the wound for exports, a key engine of the Chinese economy. Some economists predict that China's exports will continue to slow down in the future amid the trend of low global demand.
