Over Half of Chinese Companies Report Employees Infected with COVID-19 This Month

Survey by Chinese Economic Information Provider... Targeting 2,400 Companies
More Than Double Compared to 24% Last Month... Highest Since January Last Year

A healthcare worker is conducting COVID-19 testing for residents in China. [Image source=Yonhap News]

[Asia Economy Reporter Kim Junran] A recent local survey revealed that more than half of Chinese companies experienced COVID-19 infections this month.

According to Bloomberg on the 30th, China economic information provider 'China Beige Book' conducted a survey from the 17th to the 27th targeting over 2,400 companies, with about 53% responding affirmatively. This is more than double the 24% recorded last month and the highest figure since January last year.

Recently, concerns about industrial activity contraction due to the spread of COVID-19 in China have been growing. Foxconn's Zhengzhou factory in Henan Province, the largest supplier for Apple, is facing production disruptions caused by strict lockdown measures, employee escapes, and protests amid the COVID-19 situation.

Automakers such as Japan's Honda and Germany's Volkswagen have also suspended operations at their Chinese factories due to movement restrictions and parts shortages caused by COVID-19. Additionally, coal production in major coal-producing regions like Shanxi Province has reportedly been impacted by the spread of COVID-19.

China is currently implementing a 'Zero COVID' policy aimed at completely preventing COVID-19 outbreaks. According to this policy, if an infection occurs at a workplace, strict lockdown management is enforced to control access. Recently, although the Chinese government announced new quarantine guidelines, including shortened isolation periods for overseas arrivals, raising hopes for easing restrictions, infections have been rising again, leading to strengthened controls.

China Beige Book reported that the surveyed companies experienced double-digit declines in both sales and profits compared to the same period last year. Due to the impact of COVID-19, domestic and international orders have decreased, resulting in a slowdown in production. The report also raised the possibility of further increases in infections during the upcoming winter and predicted that corporate conditions could worsen even more in the first quarter of next year.