The view from China
The ongoing impact of COVID-19 and geopolitical issues
In early April, the CBI was due to accompany 19 UK businesses to China. However, the trip was postponed due to the rapid spread of the Omicron variant. As the events unfolding in Shanghai attest to, domestic travel and business engagement still remains in deep flux for those of us seeking to deepen and develop UK-China business ties. Indeed, at the time of writing there are more than 23 cities – accounting for around 180 million citizens – enduring some form of lockdown.
The economic impact is enormous – with around $46bn being lost each month in output and productivity. Shanghai, China’s financial and commercial hub, accounts for around 3% of the country’s annual GDP. And as the citywide lockdown approaches its third week, it looks like the country’s 2022 GDP target of 5.5%