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Shanghai Lockdown Scars US Firms’ Confidence, Survey Shows

  • Only 30% of companies said they increased investment this year
  • Covid curbs ‘upended’ business expectations: AmCham Shanghai
Workers in PPE at a neighborhood placed under lockdown due to Covid-19 in Shanghai on Oct. 26.
Workers in PPE at a neighborhood placed under lockdown due to Covid-19 in Shanghai on Oct. 26.Photographer: Qilai Shen/Bloomberg
Updated on

A grueling months-long Covid lockdown in Shanghai has shaken the confidence of American firms in China, who cite impending risks of shutdowns, travel curbs and supply chain disruptions for diverting investments.

Only 30% of companies in a recent survey said they increased investment this year, down from 38% in 2021, according to the American Chamber of Commerce in Shanghai’s annual China Business Report. Almost 20% said that they cut investments this year in China, mostly for Covid-related reasons, while about a third of the 307 companies said that this year they had already redirected investment planned for China elsewhere.