Most U.S. companies with locations in China are being financially affected by lockdowns
China’s extremely strict strategy of zero Covid cases has eviscerated international businesses’ trust. American businesses in the country have been cutting investments and reevaluating revenue forecasts as Covid lockdowns debilitate supply chains across the country.
Pockets of infection have surfaced across China since early March 2022 - these clusters have led to firm lockdown mandates, causing a harsh decline in supply chain activities and exports. While China’s leaders have promised to support the bleeding economy, they have also fortified the “Covid Zero” procedures in place that aim to rid the country of all Covid infections.