CCBC & Canadian Chamber of Commerce in Beijing Statement on Recent Pandemic Response Measures in China

In CCBC’s ongoing efforts to communicate our members’ challenges in the China market, the following statement was submitted to several central government bureaus on November 30, 2022. While the COVID-19 policies in China are changing rapidly, perhaps more so than any had anticipated, the operating conditions in most cities remain inconsistent and difficult. If you have any questions about this statement or the evolving scenario on the ground in China, please contact our Managing Director, China, Mr. Noah Fraser at noah@ccbc.com.

While the CCBC and CanCham Beijing recognize the severity of the COVID-19 outbreak and the challenging position that policy makers find themselves in, the current state of affairs is extremely damaging to the operation of business and the everyday lives of Canadians in China, and it is unsustainable for most families and individuals in this community.

The recent introduction of the “20 Optimizations” is, in theory, a positive step towards normalization and was welcome news to residents and executives. They include several welcome advancements, including the cancellation of the airline circuit-breaker mechanism, the alleviation in the stringency of COVID-19 CT test rates (>35), and the reduction of quarantine time for international travelers to a “5+3” system. There has recently also been some indication of an increased focus on vaccination of high-risk populations, a longstanding issue in the path to re-opening. However, while they represent movement in the right direction, there is still much more to be done and many new policies are not being applied in practice. The following issues continue to have a negative impact on the business community, residents and general investment confidence.

• • • The “20 Optimizations” are not being interpreted or implemented in a consistent manner across the country. In many cities across the country, large districts and communities with suspected cases are still asked to stay in some degree of lockdown. Schools across Beijing and other cities have been forced to move to online programming, further disrupting the lives of the business community and with no guidance on reopening timelines. Entire compounds with hundreds or thousands of people are being locked down, often without a clear reasoning and/or official information. Major cities, even those as geographically close as Chongqing and Chengdu, are responding to the pandemic in vastly different ways. Shanghai introduced a new policy whereby inbound travelers cannot visit any restaurants, shopping malls, supermarkets and other public places within 5 days of arrival. Individual stress is very high, as there remains little clarity on short- and medium-term effects on people’s lives.
    • Domestic travel is extremely difficult, especially with respect to the major commercial and political hubs of Guangzhou, Shanghai and Beijing. In the case of the capital, the internal operation and decision-making process behind the Beijing “Health Kit” app is unclear and severely inhibits domestic travel. There is no workable channel for petitions or appeals for travelers that have a red code or pop-up. The Beijing 12345 hotline, the only recourse for appeal or information, has a newly launched mini program (民意直通) that is only available to Chinese nationals, and connecting with an agent is impossibly time-consuming by most accounts. Shanghai, for example, also has extreme restrictions upon arrival to the extent that business travel to and from the city becomes unviable. Risk of forced isolation, either in quarantine centers or at home, for being a close contact or visiting a “high risk” area, adds to the anxieties borne by the company and individual, and ultimately stifles commerce.
    • Despite recent updates, inbound international travel restrictions remain unduly severe. For virtually all inbound executives, the risk of hospitalization for even an extremely mild COVID infection (in unacceptable living conditions) remains far too high to merit travel to China. Furthermore, while we welcome the reduction of the official quarantine time to a “5+3” model, most travelers cannot meet the “+3” home quarantine criteria since the arrival city is not their destination. Therefore, the quarantine time for most is still 8 days, which again reduces inclination towards travel, further impeding ease of doing business and new investment. Once free of quarantine, the domestic travel burdens remain largely insurmountable for non-resident travelers. Also inexplicable is that the standard of what constitutes a negative COVID-19 test result at the pre-departure stage of travel is different than the standard upon arrival in China, leading to many inbound travelers testing positive on arrival and being forced into objectionable environments and to undergo unnecessary treatment in quarantine hospitals, mostly while asymptomatic.

The following are some suggestions and recommendations on improving the day-to-day situation that the Canadian business community is being faced with across the country:

• • • A clearly communicated exit plan from stringent COVID-19 pandemic controls. Canadian and global executives are unable to make informed business decisions in the current environment. Investment will continue to suffer if a plan is not provided, with measures to provide certainty and predictability, such as mass vaccination for the elderly and an increased ICU bed capacity. China’s COVID-19 pandemic status, and its ongoing response, is now bifurcated so far from that of the majority of the G20 nations that its global competitiveness and attractiveness as an investment destination and trading partner are in danger of being severely diminished.
    • Consistently and fairly implement the “20 Optimizations,” and the COVID-19 rules in general, across China. There cannot be predictability if the rules set by the central authorities are inconsistently applied across the country. The “20 Optimizations” are a step in the right direction; however, officials across ministries, localities and government organs like the CDC need to be absolutely aligned in order for them to be effective without causing distrust in the broader intent of the resolutions.
    • Introduce a nationally unified, foreigner-friendly health code system to create efficiency in domestic travel in China. Our members continue to share challenges where staff of national and foreign background are caught in long-term limbo due to issues with local health codes. The impediment of domestic mobility on top of the strangulation of international travel continues to erode confidence at the head offices of foreign invested companies. A singular, national code paired with a clear path for communication and appeal is vital.
    • Cease large scale business and community lockdown. Specifically, allow positive and close contacts to isolate at home, and ensure safe and unencumbered egress from isolation in case of emergency. Ensure access to delivery services is maintained. Allow access to non-COVID related emergency medical services for households as required. Allow retail and services to continue operation, and do not close education institutions without cause. Continued large scale closures are punishing revenues and offer no clarity for planning, cash flow or staffing – while expenses remain high.

The Canada China Business Council has been building connections between these two trading and investing partners for over four decades, and on almost no other occasion during that period has the promotion of commerce and engagement with China been more challenging. Bilateral business is under extreme duress due largely to these extreme measures that are more and more asynchronous with other G20 policies. Canadians and expatriates at large in China are generally facing severe concerns about the inability to live, work and study normally – including fears of separation from their families and lack of access to essential services. This situation remains untenable for many, and continued erosion of the international community and investment environment across China appears inevitable, should there not be a timely adjustment in direction.