Consumer confidence in China is not back to normal

The significant easing of COVID-19 restrictions in China should have brought back consumers and given the global brands a boost in sales. However, having lifted restrictions in Shanghai, certain areas of the city were then placed in lockdown again the following day.

This follows China's strict policy of a zero tolerance approach to COVID-19 with continuing mass testing, quarantines and local lockdowns commonplace.

Comments that the world's largest economy is returning to normal are exaggerated. Brands should be aware that it will take years not months before currency fluctuations, increased freight costs, supply chain issues and consumer confidence will return to anywhere near pore-pandemic levels.


This information is for general information purposes only and does not constitute legal advice. It is recommended that specific professional advice is sought before acting on any of the information given. Please contact us for specific advice on your circumstances. © Shoosmiths LLP 2024.



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