German gourmet chef in lockdown + Resignation of EU companies

The lockdown in Shanghai has burdened the city’s citizens for two months now. Numerous terrifying videos circulate on social media: People screaming their despair from balconies at night, workers isolated in factories – and in some cases overrunning security forces as infections also spread there. Frank Sieren spoke with German 3-star chef Stefan Stiller, who is certain: The people of Shanghai will struggle with the psychological consequences of the lockdowns for a long time. And many self-employed will also reach their financial limits, since the government’s support measures have so far failed to address the problems faced by many companies.

The Covid crisis has shaken some certainties in China and appears to exacerbate other trends. European companies complain about a lack of transparency and limited ability to plan their business activities. But there is also a lot going on aside from the lockdowns: A growing number of expats are leaving the country, authorities grant fewer visas to locals, and the situation for international schools is becoming increasingly complex, as Christiane Kuehl explains.

Overall, it seems as if zero-Covid has long since become more important than economic growth. And this makes sense, since many elderly citizens are not sufficiently vaccinated. A widespread Omicron outbreak could prove catastrophic for China. So the government is willing to accept two or three “bad quarters” – as irritating as that may seem to Western companies. After all, so far they have known virtually nothing but limitless growth in the People’s Republic. It is surprising that the central bank and Beijing have no intention to introduce a comprehensive economic stimulus package to revive economic growth. At least not yet. After all, Xi’s re-election is approaching in the fall. Growth must not be allowed to collapse any further.

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Nico Beckert