7 out of 10 Chinese Export Companies "Suffered from COVID-19... Urgently Need 'Business Trip Solutions'"

Muheop, 'Survey on China's Export Environment' Targeting 540 Companies

Data provided by Korea International Trade Association

[Asia Economy Reporter Kim Heung-soon] A survey revealed that more than 7 out of 10 domestic export companies doing business with China suffered business disruptions due to the impact of COVID-19. These companies insisted that travel conditions must be improved to normalize business operations.

The Korea International Trade Association (KITA) announced on the 14th that, based on a "Recent Export Environment Survey to China" conducted last month targeting 540 domestic companies exporting to China, 75.7% of the companies reported being affected by COVID-19 in their China business. Specifically, 37.2% of companies said they were "severely affected," and 38.5% said they were "slightly affected."

The companies participating in the survey cited "business trips" (73.9%, multiple responses allowed) as the biggest difficulty in doing business with China recently. This was followed by "finding buyers" (39.3%), "marketing disruptions such as exhibition participation" (39.1%), and "customs clearance and logistics" (30.4%).

Regarding government support policies most desired for business trips to China, respondents pointed to "simplification of complicated immigration procedures" (67.0%), "introduction of vaccine passports between the two countries" (65.7%), "expansion of invitation letters and visa issuance by the Chinese government" (46.9%), and "increased charter flights and other air services" (21.3%).

As for the timing of COVID-19 damage recovery and export normalization, 77.7% of companies expected it to be "after next year," which was the highest proportion. Only 19.3% anticipated "recovery within this year." Specifically, the largest number of companies expected recovery in the "first quarter of next year" (32.2%) and the "second quarter of next year" (23.8%).

Cho Hak-hee, head of KITA’s International Business Division, said, "Based on the survey results, we will convey the difficulties and requests of companies to the government to request expanded policy support," adding, "We will also actively seek cooperation from the Chinese Embassy in Korea and local Chinese governments in Korea to facilitate invitation letters and visa issuance, expand air services, and revitalize business."