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Parts of Shanghai have faced intermittent restrictions on business due to Covid controls, even after a broader two-month lockdown ended in June. Vcg | Visual China Group | Getty Images BEIJING — Nearly twice as many U.S. companies cut their investment in China this year versus last year, the American Chamber of Commerce in Shanghai found in its latest survey, released Friday. For 2022, 19% of respondents said they were cutting investment in China, up from 10% in 2021, the report said. The top reasons for doing so were Covid-related shutdowns, travel restrictions and supply chain disruptions, survey respondents said. "Confidence has been shaken," the American Chamber of Commerce in Shanghai said. The metropolis of Shanghai suffered one of the harshest lockdowns in China earlier this year, dragging down the national economy in the second quarter with barely any growth. A bounce of 3.9% in the third quarter brought year-to-date GDP growth to 3% — well below the official target o...

After a Covid outbreak at a Foxconn factory in Zhengzhou, China, some workers chose to go home. Pictured here are the shuttle buses on Oct. 30, 2022. Vcg | Visual China Group | Getty Images BEIJING — China's decision to maintain Covid controls is pushing companies to look to factories outside the country, according to The Economist Intelligence Unit. "What we are hearing from companies [is] they are moving ahead with their supply chain diversification plans because this start-stop economy is here to stay," said Nick Marro, global trade leader at The Economist Intelligence Unit. "If it's an on-off economy, if things can't get done, that impacts decision-making," he said. "We don't expect companies to leave China. We just expect them to diversify their footprint, China plus one." Beijing's stringent Covid controls helped the country resume work while the rest of the world still struggled with the pandemic in 2020. While other countrie...

China's factory activity declined in October, official data showed Monday. Pictured here on Oct. 27, 2022, in Jiangsu province is an aluminum products company. Vcg | Visual China Group | Getty Images BEIJING — China's factory activity fell in October due to frequent Covid outbreaks, the National Bureau of Statistics said Monday. The official purchasing managers' index for manufacturing fell to 49.2 this month, down from 50.1 in September, the data showed. Economists had expected a print of 50, according to analysts polled by Reuters. Readings below 50 indicate a contraction in business activity , while figures 50 above reflect expansion. The index surveys businesses on operating conditions. The index has come in below 50 for six out of 10 months of the year so far. Sub-indicators on factory employment, production, new orders and supplier delivery time all showed contraction in October compared to September. watch now VIDEO 2:53 02:53 China will continue to be No. 1 in the...

Parts of Shanghai have faced intermittent restrictions on business due to Covid controls, even after a broader two-month lockdown ended in June. Vcg | Visual China Group | Getty Images BEIJING — Nearly twice as many U.S. companies cut their investment in China this year versus last year, the American Chamber of Commerce in Shanghai found in its latest survey, released Friday. For 2022, 19% of respondents said they were cutting investment in China, up from 10% in 2021, the report said. The top reasons for doing so were Covid-related shutdowns, travel restrictions and supply chain disruptions, survey respondents said. "Confidence has been shaken," the American Chamber of Commerce in Shanghai said. The metropolis of Shanghai suffered one of the harshest lockdowns in China earlier this year, dragging down the national economy in the second quarter with barely any growth. A bounce of 3.9% in the third quarter brought year-to-date GDP growth to 3% — well below the official target o...