7 out of 10 companies expect growth to deteriorate due to COVID-19.
This is a special edition that serves as an add-on to the Danish Business Outlook on China from Q1, 2022.
The DBOC Index tracks changes in the short-term outlook of Danish companies doing business in China.
In light of the disrupting effects of the latest COVID-19 outbreak in Shanghai and China and the Russian invasion of Ukraine and the expected impact it will have on trade, supply chains and companies in China and all over the world, an additional flash survey was conducted in order to supplement the initial findings.
The report shows that the COVID-19 lockdowns weigh heavier than the invasion of Ukraine in the deterioration of the business outlook reported. 7 out of 10 companies expect growth to deteriorate due to COVID-19.
When asked if the proportion of turnover generated in China would increase in the coming two years in April/May 2022, the number of respondents who expected that the proportion of turnover generated in China would decrease had grown from 10 pct. to 26 pct since December 2021.
The surveyed companies indicate that their confidence in the Chinese market has clearly declined following the Russian invasion of Ukraine and the COVID-19 outbreak in Shanghai and China. The proportion of companies that no longer plan to significantly increase capacity in China in the next two years has increased by 23 pct. points over the time span of only four months.
Respondents clearly indicate that they face increased supply chain challenges between the conclusion of the second comprehensive survey and the time of the add-on survey. More than eight out of ten surveyed companies now indicate that they agree or strongly agree that they face supply chain challenges in China, which is an increase of 34 pct. point in the time span of only four months.
For more information on the differences between industries, business sectors and their varying outlooks on activities in China, read the full report here.
The DBOC index is a joint initiative of the Embassy of the Kingdom of Denmark in Beijing, the Danish Chamber of Commerce in China (DCCC), the Danish-Chinese Business Forum (DCBF) and the Sino-Danish Center for Education and Research (SDC).
The data is collected from member companies of the Danish Chamber of Commerce in China (DCCC) and the Danish-Chinese Business Forum (DCBF) with a Danish business license (CVR number).
We thank all DCBF member organizations that support the initiative and invite all DCBF members to stay tuned for the coming quarterly updates.