How the lockdowns are damaging China’s reputation as a location for innovation

Beijing China had actually developed into an increasingly important research and development location for foreign companies in recent years – until the pandemic came. The lockdowns, especially the nine-week lockdown of Shanghai, could be a “game changer”, said Jörg Wuttke, President of the European Chamber of Commerce in China, on Wednesday when presenting a study on the role of European companies in China’s innovation system.

On the one hand, China’s new unpredictability is unsettling foreign companies in general, and many have put their investments on hold, Wuttke explained. On the other hand, Chinese consumers are also keeping their money together. But if the income from the important China business falls, there is not only a lack of money for research and development on site, but also for the research centers of European companies worldwide.