કંપની Foreign company shifted from China to Singapore and Hong Kong
Despite China’s poor economic situation, President Jinping is taking the decision to lock down because he is more concerned about the peaceful election of the Communist Party of China in October. Jinping is well aware that the economic downturn has worsened since the lockdown. People are imprisoned in homes. Unemployment rate is more than 5%. Jinping thinks that if more cases of Koro’s infection are reported, he will face public outrage. As many as 5,000 new cases were reported in Shanghai on Monday. President Xi Jinping’s zero-sum policy is now a problem for China. Over the past two months, about 200 million people in six Chinese cities have been in partial and complete lockdown. As there is no sign that the lockdown will end anytime soon, out of the 1.5 million foreign companies and investors registered in China, 9 per cent, or 2.21 lakh, have started the countdown of packups. This means that these companies have to wind up their business in China. Shanghai, the economic capital of China, which is suffering from a lockdown, has about 50,000 foreign investor-based companies. More than half of the companies have also closed their business. All foreign companies have been locked up for two months. The capital, Beijing, also has about 4,000 foreign companies, of which about 10,000 have completed their business. China’s supply line has been completely cut off due to the lockdown. The World Bank has also downgraded China’s economic growth forecast to 7.5 percent in April 2013 from 6.5 percent in October 2021. According to the US and European Chambers of Commerce based in China, six foreign companies have left China in the last two months. Most of them are Southeast Asian countries like Singapore, Vietnam and Hong Kong. Due to the lockdown in China and the order of the Jinping government, these south-eastern countries have also given tax and other reliefs to companies shifting from China. According to Steve Luke of the European Chamber, prospects are also being explored in India and Bangladesh. Apple has lost Rs 4,000 crore due to the lockdown in China. According to a report, Apple may now make an iPhone in India to eliminate the product’s dependence on China. According to a report, due to the lockdown, India’s trade balance with China has increased compared to last year. India’s trade balance with China in 2021, where Rs 2.31 lakh crore. It is estimated to have risen to Rs 4.5 lakh crore in 203 so far.
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