As China struggles under tight Zero-COVID restrictions, businesses are relocating their assets.

Chinese state-controlled media warned foreign businessmen not to leave on May 12 . Foreign companies are reluctant to continue their operations in China because the countrys policies designed to combat COVID are putting them in jeopardy .

Beijing, May 17 : For all the wrong reasons, China's notorious Zero-COVID program has sparked backlash from European and US companies in China, who have expressed worry about an increasingly volatile investment climate characterized by seemingly unending lockouts and stringent disease control policies.Despite this, many foreign companies are attempting to shut down their operations and relocate as China is beset by unending restrictions.Although the Chinese state-controlled media, Xinhua, warned foreign businessmen not to leave on May 12, the Hong Kong Post reports that these foreign firms are reluctant to continue their operations in China because the country's policies designed to combat COVID are putting them in jeopardy.Companies want to plan for the future, and with China's long-serving approach to COVID, the prospects for these businesses seem bleak.

Nearly a third of these companies have announced layoffs.Foreign companies in China are left with no choice but to redirect their investments to other markets.The results from a slew of interviews also indicated the same appetite of these firms.23 percent of the 372 companies polled were considering moving existing or proposed investments out of mainland China, more than double the January survey and the highest rate in a decade, according to Jorg Wuttke, President of the European Union Chamber of Commerce in China.On May 10, Tedros Adhanom Ghebreyesus, the World Health Organization's Director-General, made clear the WHO's position on Chinas COVID policies.

This only adds to Beijing's already high worry about its economic prospects as a result of the strict COVID laws.