Corona: Small business in China fear of collapse following cash pull

Beijing, Ta. 24 February 2020, Monday

Most of China's economy is currently in a dormant state, and many of its companies are scrambling to survive. In the current month's survey of small and medium-sized companies in China, many companies have just as much cash on hand for a few days.

While the Chinese government has lowered interest rates and instructed banks to increase financing and relaxed the standards for companies to resume their operations, many companies' administrators said that they did not have enough money to pay employees but that they had new money to pay the debt. Not found.

It is difficult for some companies to survive without financial support or sudden improvement in the Chinese economy. If the coronavirus is not controlled within the current quarter, many of China's small business activities will stop, an analyst said in an interview to a local agency. The Chinese industry is providing much-needed support to the trade industry. China's largest bank, Industrial and Commercial Bank of China, has provided support to five percent of its small business customers.

It is estimated that small enterprises in China are facing the challenge of paying quarterly interest on loans of 1.8 trillion yuan. There are also reports that local governments and banks have limited the amount of loans.

Loans are being released to businesses affected by coronavirus, but their standards are also being claimed.

While China's small business has been struggling for a long time due to the trade war with the United States, coronaviruses have made their situation more fragile.