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Travel curbs are biggest challenge for British firms in China - survey

Tue, 07th Dec 2021 01:00

BEIJING, Dec 7 (Reuters) - China's tight restrictions on
international travel as part of its zero-tolerance approach to
controlling COVID-19 are the top concern for British firms
operating in the country but they are more optimistic than last
year, a survey showed on Tuesday.

"Opaque, inconsistent travel and visa policies have made it
extremely difficult to bring foreign staff into China," the
British Chamber of Commerce in Beijing said.

While other countries in Asia have slowly opened up their
borders to international travel, China still has strict curbs in
place involving long quarantines and limits on flights and
visas.

"China today is physically more isolated from the world than
at any time since entering the World Trade Organisation twenty
years ago. As international travel starts to recover globally,
the contrast with China is striking," the chamber said.

Its survey, which had 288 respondents, showed nearly a
quarter of companies saw foreign staff numbers fall in 2021, and
41% expect numbers to decrease significantly next year on
concerns over separation from family or friends or uncertainties
over being able to come back.

Business groups representing European and American companies
have voiced similar concerns.

China has defended its COVID control measures as an
effective way to protect its citizens and officials have said
they will not change any time soon, although the country has
pledged to ease rules slightly for U.S. business
travellers.

The British survey said recovery from pandemic-related
disruption had been "fragile," but firms are more optimistic
about prospects in China than they were last year.

Around two fifths of businesses expect earnings in 2021 to
exceed pre-pandemic levels, and nearly half expect them to
increase from last year, it said. In 2020's survey, only 30% of
companies expected earnings to be higher than the year before.

Nearly half of respondents were from the professional
services, education, and advanced manufacturing and
transportation sectors.

Other concerns companies raised included the uncertainties
of China's cybersecurity regulations and rising labour costs.

(Reporting by Gabriel Crossley; editing by Philippa Fletcher)

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