Travel disruptions, cost cutting key
issues for U.S. business in China: report
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[May 29, 2020]
BEIJING (Reuters) - Global travel
disruptions are the top concern for American businesses in China, of
which many are cutting compensation and bonuses amid the fallout of the
COVID-19 epidemic, according to a report from a business group. |
![](../images/052920pics/busine37.jpg)
A woman wearing protective face mask walks at Lujiazui financial
district on the opening day of the National People's Congress (NPC), in
Pudong, Shanghai, China May 22, 2020. REUTERS/Aly Song |
Ninety percent of the 100 or so respondents said they were
affected by such disruptions, up from 77% last month, according
to a monthly survey on the impact of COVID-19 by the American
Chamber of Commerce in China, released Friday.
Thousands of senior executives are stranded outside China,
chamber chairman Greg Gilligan said in a news release.
"We will continue to work closely with the relevant government
authorities in a bid to bring them back as soon as possible," he
said.
Sixty percent of companies said they were cutting costs. About
half of respondents said they had or were considering cutting
compensation for employees, with nearly 30% saying they were
cancelling or deferring salary increases this year.
Both U.S. and European business groups are lobbying China to
allow foreign workers back into the country after it shut its
borders in late March to non-Chinese nationals to curb the
coronavirus.
China sees imported cases from abroad as a key threat to its
epidemic control.
It has only relaxed rules to allow some business travel from
South Korea and Germany. Beijing has also consulted with Japan
about easing border controls.
Nearly 60% of surveyed companies said they had resumed normal
operations after nationwide lockdowns, although only a quarter
of companies working in the resources or industrial sectors said
this was the case. About half of manufacturers said their
facilities are operating at normal capacity.
(Reporting by Gabriel Crossley. Editing by Gerry Doyle)
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