US firms still not fully operating after Shanghai lockdown

Controlled movement: A man walks on the Bund in Shanghai. A survey of about 130 firms highlights Shanghai’s slow emergence from a strict lockdown that confined most residents to their homes since March. — AFP

SHANGHAI: The majority of US businesses in Shanghai have resumed operations following the city’s tough coronavirus lockdown, but their levels of activity are well-below normal due to continued restrictions on movement.

Just 31% of manufacturing and services companies surveyed by the American Chamber of Commerce in Shanghai last week said they were fully operational.

Of those operating at less than full capacity, most reported that staff found it difficult to travel to work.

The survey of about 130 firms highlights Shanghai’s slow emergence from a strict lockdown that confined most residents to their homes for two months starting in March.

Officials are still seeking to eliminate virus transmission under the country’s zero-Covid policy. “A lot of progress has been made in the past two weeks, but we are not yet at ‘normal’,” said chamber president Eric Zheng.

The city officially re-opened at the beginning of June, but residents remain cautious and most districts suspended indoor restaurant services this week after new coronavirus cases were found.

The chamber of commerce’s survey did indicate an improvement in business conditions since early May, when surveys of Japanese and German businesses showed the majority of firms hadn’t resumed operations.

Two thirds of the American chamber’s member firms are now operating at above 75% capacity, according to the survey. Just 3% of firms in the American chamber’s survey said they hadn’t resumed work.

China’s lockdowns since March have alienated many foreign businesses, given the gap with more relaxed policies in their home countries.

About half of the companies surveyed by the American Chamber said they had delayed or decreased investments in China as a result of Shanghai’s lockdown, with the other half saying that the lockdown had not changed their investment plans or that they weren’t sure what the impact would be.

About a third of companies said they would maintain operations in China but move some suppliers or factories producing global products outside China. — Bloomberg