The West’s bad strategy has been China’s best, but no one expected a war and a virus that puts the world in check and therefore all industry and technology companies are hunting down China with their claws. The presented report reveals worrying data for everyone, for the Asian country, for the West and for users, no one will escape the changes.
The number of European companies considering leaving China has tripled
When China declared and launched the COVID Zero policy, it was direct and comprehensive, or what amounts to the same, zero is zero, no more, Asian mentality with a strict diet, there are no more tricks to think about here . China imposes with these arguments and said law a total or partial blockage in at least 45 cities
The report indicates that the 90% of the companies surveyed are experiencing serious problems, 85% had supply problems 89% transportation problems, 87% could not deliver the products nationwide and the 83% internationally. This caused the port of Shanghai to operate at only a quarter of its capacity, causing a collapse never seen before.
More than 800 boats in the harbor await their turn
With this number of ships moored and isolated by COVID, it is not surprising that there are no chips as such in the world, especially in companies that need them. The problem is getting to the point where companies like Tesla, Foxconn or SMIC they have taken a hard line: employees live and work in the factories to ensure that there will be no more cases of COVID outside the factories.
Logically, if you’re a high-volume chip assembly plant and other high-volume m iscellaneous systems like Foxconn, this policy is going to cost you a double whammy, since the number of infections isn’t going down, it’s just concentrating in specific sectors of your factories and unsurprisingly, they produced repeated closures.
All of this has led European technology and IT companies to see the Chinese government’s way of operating as detrimental to their interests and to seriously consider leaving the country to establish themselves in others like Vietnam, India and even Taiwan (somewhat similar policies).
But from saying to doing, there is a stretch. What is said could not be achieved because it will not be easy to get rid of the resulting infrastructure and advantages of China, but the truth is that with Donald Trump, the United States has already warned of corporate pullback and now Europe also seems to be seeing a similar scenario. Is the COVID Zero policy the preamble to zero investment?
