Expansion of COVID-19 Lockdowns in China... KOTRA Holds Emergency Video Conference with Local Trade Offices

On-site Inspection of Major Areas Including Shanghai Amid Ongoing Lockdown Measures

[Asia Economy Reporter Park Sun-mi] KOTRA announced on the 1st that it held an emergency inspection video conference with seven trade offices in Chinese regions including Beijing and Shanghai. The emergency inspection meeting was held amid growing uncertainty in the business environment due to the spread of the Omicron variant in China, which has maintained a 'Zero-COVID' quarantine policy.

Since early last month, confirmed cases have increased in Shandong Province, Shenzhen City, Jilin Province, and other areas in China, leading to large-scale testing and quarantine measures. Consequently, restrictions on movement and traffic controls have caused logistics disruptions and difficulties for workers commuting, resulting in some production stoppages and other repercussions.

According to KOTRA's trade offices in China, direct damage to Korean companies operating locally has not yet fully manifested, but as the situation prolongs, business damages such as contract non-fulfillment and profitability deterioration are being detected. Moreover, since quarantine measures by Chinese local governments are often implemented abruptly, local Korean companies are struggling to respond in advance.

KOTRA is operating a business consultation system through 'Trade Investment 24' to quickly resolve difficulties related to Chinese business faced by small and medium-sized enterprises.

Yoo Jung-yeol, President of KOTRA, stated, “If the spread of COVID-19 in China restricts the smooth movement of goods and personnel, it is expected to have a significant impact on Korea's trade and supply chains. Therefore, KOTRA will focus on local monitoring by utilizing all networks centered on local trade offices. At the same time, we will promptly activate support systems to assist the export activities of our companies.”