%20(3).png){kind=small}
![TFD [LOGO] (10).png](https://static.wixstatic.com/media/bea252_c1775b2fb69c4411abe5f0d27e15b130~mv2.png/v1/crop/x_150,y_143,w_1221,h_1193/fill/w_179,h_176,al_c,q_85,usm_0.66_1.00_0.01,enc_avif,quality_auto/TFD%20%5BLOGO%5D%20(10).png)
Japanese Firms Reluctant To Invest In China Due To Zero-COVID Policy
- By The Financial District
- Jul 16, 2022
- 2 min read
The Beijing government's harsh "zero-COVID" policy, which includes the frequent imposition of lockdowns in major cities, has been criticized as a political risk by Japanese firms, the Mainichi Japan reported.
Photo Insert: A poll conducted by a corporate research agency revealed that 66.3 percent of Japanese companies had experienced a "negative impact" as a result of the lockdown in Shanghai, a city of 25 million people, with many claiming difficulties in acquiring goods or components.
Kyodo News also stated that Japanese enterprises were unable to sketch out their business strategy in the world's second-largest economy with a population of 1.4 billion due to the Chinese government's stringent restrictions on people's travels, which have disrupted domestic supply chains for more than two years.
As a result of China's rigorous quarantine measures, which have a negative effect on mental health even for people who are not infected with the new coronavirus, a large number of Japanese businesses have been keen to cut their employees in China.
"As long as there zero-COVID policy is in place, we cannot craft a management strategy," said Tadashi Sato, a 57-year-old employee of a Japanese food product company operating in China, adding, "We just have a country risk here."
A poll conducted by a corporate research agency revealed that 66.3 percent of Japanese companies had experienced a "negative impact" as a result of the lockdown in Shanghai, a city of 25 million people, with many claiming difficulties in acquiring goods or components.
Tokyo Shoko Research conducted an online poll over the course of nine days beginning on June 1 and got responses from 5,799 large and small Japanese businesses.
In light of the "vulnerability" of China's supply chains and logistics, Japanese companies will likely need to reevaluate their business plans and strategies for operating in China, according to the credit research organization.
