China’s small businesses face tough times as the coronavirus continues to keep people off the streets. The Chinese government has also shut down much of the country in an attempt to stop the virus from spreading.
While many large organisations have now resumed work, small businesses are having a much tougher time adapting to the new stringent health rules now imposed in many areas of China. Small businesses often don’t have the ability to let employees work from home either, further adding to their difficulties.
Following a survey by academics from Tsinghua and Peking Universities, it was found that roughly a third of small to medium sized businesses in China could only survive for a month with the money that they have.
Many small business owners in China have begun venting their concerns on social media. Chairman of Home Original Chicken, Shu CongXuan, said that they have had to shut down 400 stores around China. He’s worried that his company will run out of cash but is also determined to keep paying his employees, even if it means selling his own home!
While times are certainly tough right now, the number of new coronavirus cases in China has begun to decline, which hopefully means China’s small businesses will be able to resume work as normal soon without incurring further financial loss.
It’s not only small businesses based in China that are suffering due to the coronavirus outbreak, it’s also impacting small businesses that import products from China.
There are many small companies that sell imported goods from China on Amazon. But due to many of China’s factories being closed, it’s put these businesses in a difficult spot. Running out of stock means no sales as well as a downgrade in ranking on Amazon, which will no doubt impact sales further.
It’s no secret that China’s manufacturing industry has taken a big hit over the last couple of months due to the outbreak of COVID-19. Many factories have been forced to shut down and the ones that are open often struggle to get employees back to work.
China’s government has, however, begun taking measures to ensure it’s economy remains stable. This includes cutting interest rates and implementing tax cuts and subsidies to helps consumers.
China is certainly in a difficult position right now but we wholeheartedly believe that it will get through this very soon. With drastic measures already in place to stop the spread of the virus and new cases declining, things are poised to turn around.
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