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Virus credit crunch hits millions of Chinese firms

来源:BBC 作者: 时间:2020-02-24 Tag: 点击:

 

Mounting debts have hit Chinese companies struggling to pay workers and suppliers amid the coronavirus outbreak.

President Xi Xinping said on Sunday that China faces a "big test" to combat the virus.

The government has asked banks to offer more credit for an economy stunned as the virus spreads rapidly.

But a survey of small and medium Chinese firms found millions at the edge of survival.

The Chinese Association of Small and Medium Enterprises said around 60% could cover regular payments for only one to two months before running out of cash.

Only 10% said they could hold out six months or longer.

At the same time, the industry group said that "nearly 60% of the enterprises (surveyed) have resumed work."

Small- and medium-sized companies in China are a particular focus because they account for 60% of the economy and 80% of jobs, according to the People's Bank of China.

Many of the firms and their workers have been on an extended break since late January when China extended the week-long Lunar New Year into mid-February and travel within and to and from the country was slashed to combat the spread of the virus.


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