The environment for conducting business has gradually improved since our May 15, 2003 Update. Although tough anti-SARS measures remain in force in Beijing, we are seeing the business climate gradually recovering from the near shutdown during the May Day holidays. Almost all government and business offices are open and have mostly returned to full staffing levels. However, many businesses we’ve contacted indicate they continue to operate on a rotational basis. A key development that has prompted the rotational work schedule for many businesses was the Beijing government’s decision to close the schools. The government will reopen schools gradually over the next several weeks.
Our business clients in the States continue to observe the U.S. State Department China Travel Warning. The CS Beijing office has not received a meeting request from U.S. business visitors during the month of May. Because of postponements, we have no trade missions, seminars, trade shows or single company promotions scheduled through June. The situation is fluid, however, and most of our clients are actively monitoring the SARS situation with the hope that they will be able to soon resume their business activities in China.
The occupancy rate at major hotels in Beijing is still below 10 percent. The major U.S. airlines providing service to Beijing have cut back on flights. For additional information on flights to and from China, travelers should consult with their airline or travel agency.
Our CS Beijing staff still report difficulties in communicating with some Chinese contacts, but we have succeeded in reaching many key contacts by phone this week and even visited a few of them in their offices. Bookings for meeting rooms in hotels are way down with increased bookings of teleconferencing facilities being the only bright spot. CS-Beijing has experienced recent success using videoconferencing equipment to facilitate meetings and briefings in lieu of U.S. business officials traveling to Beijing.
Chinese business travel to the U.S. has declined dramatically. We continue to receive many inquiries about rumored U.S. Government quarantine procedures for travelers arriving from SARS-affected areas. For the latest information concerning procedures upon arrival for U.S. bound travelers from SARS areas see the U.S. Centers for Disease Control website. Even when we debunk the rumors, however, our Chinese contacts remain concerned about Americans not wanting to meet with them upon arrival. We have been forced to postpone all but one of our planned Chinese delegations to the U.S. through June because of concerns by our Chinese clients about traveling to the U.S. However, on a positive note, the CS-Beijing trade specialist covering the education market has been invited to deliver a presentation, in person, at the annual NAFSA conference the week of May 26th in the U.S.
Many American companies report difficulties in traveling outside of Beijing. We continue to receive reports of disinfection stations, body temperature checks, roadblocks, quarantines and other measures. Companies considering sending representatives from Beijing to other cities in China are strongly urged to check local travel restrictions and possible quarantine procedures.