A study showed that about 23% of European companies located in China are considering transferring their investments outside China, after the "zero Covid" policy began to reflect negatively on the economy.
The European Union Chamber of Commerce said, on Wednesday, that China's strict zero-Covid policy and the accompanying inconsistency have negative consequences for three-quarters of European companies in this country.
And China is the last major economic country that maintains a strict health strategy in the face of the Covid pandemic, from imposing quarantine on everyone whose test result is positive, and on targeted areas, or imposing mandatory PCR tests on entire regions.
But this policy has serious repercussions on the economy, with many businesses closed, tourism paralyzed, factories suspended, and production chains disrupted.
As a result, anti-Covid-19 measures and "uncertainty" are increasing concerns for European companies in China, according to an annual survey conducted by the European Union Chamber of Commerce in Beijing.
"As long as the threat of quarantine persists, the business environment there will remain unpredictable," the Chamber of Commerce wrote, noting that the "inflexible and inconsistent" zero-Covid policy is driving 23% of European companies surveyed to consider investing outside China.
The survey indicated that this percentage is at its highest level in 10 years.
China has great growth potential and an unparalleled production chain, but "the commitment of European companies cannot be taken for granted", according to the European Chamber of Commerce.
The Chamber of Commerce warned that "if China continues on this path, the business environment will become more complex", and this will accelerate the "migration" of European citizens.
"At the moment, ideology prevails over economics," the Chamber of Commerce wrote with regret.
In June, China reduced the mandatory quarantine period for travelers arriving in the country from 21 to 10 days. But the low number of flights with China and the exorbitant price of tickets remain a major obstacle to travel.
The zero-Covid strategy, advocated by Chinese President Xi Jinping, is under increasing criticism in the business community, who are concerned about the threats posed by quarantines to economic activity.