Factory shut down impacts small Chinese enterprises
By the end of 2019, the situation of small enterprises in China has only just begun to improve. Today, there are two new threats: a dangerous new coronavirus is spreading across the country, and Chinese officials have ordered most of the country to suspend work to prevent more people from getting infected.
Such unprecedented isolation measures may help slow the spread of the epidemic, but the cost is huge, especially in Hubei Province where the epidemic has concentrated. If China does not issue resumption orders as soon as possible, the impact on small businesses and the job market may be irreparable.
In early February, a joint study by two of China's top universities highlighted how bad things could get. Researchers at Tsinghua University and Peking University found that of the 1,435 small businesses they surveyed, more than a third of them had cash on hand that could support at most one month, and two-thirds of them had insufficient cash on hand to support three month.