"It's depressing": the Covid in China exhausts companies and employees

Europe 1 with AFP 1:43 p.m., June 19, 2022

Restrictions, uncertainty and layoffs: In China, the zero Covid policy is making life difficult for employees and companies, forced to adapt day by day, or even close down.

China is the last major economy to maintain a strict health strategy, which is based on the quarantine of people who test positive, on targeted confinements or even on mandatory PCR tests.

But this policy has serious repercussions on the economy, with many businesses closed, tourism at half mast, factories operating at idle and very disrupted production chains.

If the Asian giant had quickly recovered in 2020 from the first epidemic shock, in recent months it has faced its worst outbreak of Covid-19 in two years.

This situation caused the total confinement for two months of the economic capital Shanghai in April, with the consequence of disastrous repercussions on activity and record unemployment.

Fiona Shi has lost her job twice due to the pandemic.

In 2020, this 38-year-old Beijinger held a management position in the hotel industry, when the spread of Covid dealt a severe blow to the tourism sector.

Two years later, Fiona, who had found work in a multinational, finds herself again unemployed, this time because of health restrictions.

"The pandemic has made things more complicated", with many companies now reluctant to hire or reducing their payroll, she told AFP.

"Really worried"

Another obstacle: a certain number of bosses "do not recruit people over 35", notes Fiona bitterly, underlining the difficulty of finding a management position.

"I'm really worried," she says.

Lockdowns and unexpected closures of businesses, offices or factories have become a daily concern for entrepreneurs in terms of organization.

And because of anti-Covid measures that can change from day to day, companies have little visibility.

The epidemic is also weakening groups with strong backs, but already tested by a tightening of regulations targeting real estate and tech.

Ms. Bai, 27, who worked for an American technology company, was fired.

Because of the authorities' turn to regulate the digital giants, his ex-employer had already "lost money" and preferred to throw in the towel by leaving the Chinese market.

"It will not be the first nor the last," warns the Pekingese, who does not wish to reveal her full name.

In terms of logistics, health restrictions are a headache.

The clothing chain that employed Andrew Zhang initially tried to adapt to keep stores open.

But his bosses "realized it wasn't possible" because of quarantine rules, which would have disrupted supplies.

As a result, the company now only sells online and Andrew quit his job.

Overtime

In March alone in China, some 1.3 million entities canceled their commercial registration, according to official figures.

A jump of 24% over one year... The current health strategy is firmly defended by President Xi Jinping and no one dares to publicly question it.

According to analysts, the zero Covid should therefore be made permanent.

Even if the economy has to pay the price and if the restrictions make life unbearable for bosses and employees.

“Being teleworked, especially in a sector like ours where overtime is the norm, has further blurred the boundary between professional and personal life,” laments Mr. Ning.

This 26-year-old young man, who does not wish to reveal his first name, worked in Beijing in the marketing department of a technology company.

It normally ends around 11 p.m.

But from the start of teleworking last month in the Beijing district where he lives, he only stopped after midnight and saw his weekends planed by overtime.

"I was really exhausted. So I quit," Ning told AFP.

Since then, he has sent 200 CVs but only obtained three job interviews.

It's depressing," he explains. "But you have to find a way to survive."