Friday, April 3, 2020

Chinese Firms Race to Contain Job Losses as Coronavirus Batters Economy

Must Read

China Factory Activity Unexpectedly Expands, but Economy Cannot Shake Off Virus Shock

BEIJING—Factory activity in China unexpectedly expanded in March from a collapse the month before, but analysts caution that...

Can we stop the protectionist wave?

Author: Gary Clyde Hufbauer and Euijin Jung, PIIE Globalisation was under threat even before the pandemic. US President Donald Trump...

Looking beyond Tsai’s big election win

Author: Gerrit van der Wees, George Mason University and George Washington University President Tsai Ing-wen and her Democratic Progressive Party’s...

Chinese banks brace for bad debt blowout as coronavirus pande…

Three leading Chinese state-owned banks reported that their non-performing loan ratios had stayed largely stable in 2019 even as...

CCP Virus Devastated China’s Poultry Industry

News Analysis China’s lockdowns, strict quarantines and travel restrictions on hundreds of millions of its citizens to contain the...

BEIJING—When cameraman Mark Xia returned to his job this month after the Lunar New Year holiday, the Shanghai video production house where he worked told him to take three months of leave with no pay, as a coronavirus outbreak takes a toll of China’s businesses.

Now Xia is looking for a part-time job after the company, with a workforce of about 100, rejected his request to pay at least half his monthly salary during the suspension, and left him no choice but to resign.

“I understand the company’s cash-low is tight,” Xia, 25, told Reuters. “We postponed some shooting due to the coronavirus outbreak, and that’s had a huge impact on our revenues, that’s the reality.”

Xia is one of many losing their jobs in the outbreak, sparking strict travel and movement curbs that have kept many businesses shut, disrupting demand and supply for goods and services.

Many small firms like Xia’s former employer face cash crunches because of a lack of orders, forcing them to lay off workers or dock salaries to keep afloat.

But the outbreak has yet to show signs of peaking.

Any rapid rise in unemployment could pose a big challenge to China’s stability-obsessed leaders, with growth in the world’s second-largest economy already slumping to near three-decade lows.

Just 34 percent of nearly 1,000 small and medium-sized firms said they could survive for a month on current cashflow, a recent survey by Tsinghua University and Peking University showed.

A third said they could last for two months, while 18 percent said they could stick it out for three months.

“There could be big layoffs,” said Wang Jun, Beijing-based chief economist at Zhongyuan Bank.

“I think it’s more appropriate to compare the current impact to the global crisis, instead of that of SARS,” he added, referring to the outbreak of Severe Acute Respiratory Syndrome (SARS) in 2002 and 2003.

Epoch Times Photo
A man wearing a face mask rides an escalator at the Lujiazui financial district in Pudong, Shanghai, China on Feb. 10, 2020. (Aly Song/Reuters)

Mass Layoffs?

During the global financial crisis of 2008 and 2009, about 20 million Chinese…

Source link

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Latest News

China Factory Activity Unexpectedly Expands, but Economy Cannot Shake Off Virus Shock

BEIJING—Factory activity in China unexpectedly expanded in March from a collapse the month before, but analysts caution that...

Can we stop the protectionist wave?

Author: Gary Clyde Hufbauer and Euijin Jung, PIIE Globalisation was under threat even before the pandemic. US President Donald Trump set the tone by declaring...

Looking beyond Tsai’s big election win

Author: Gerrit van der Wees, George Mason University and George Washington University President Tsai Ing-wen and her Democratic Progressive Party’s (DPP) momentous election victory on...

Chinese banks brace for bad debt blowout as coronavirus pande…

Three leading Chinese state-owned banks reported that their non-performing loan ratios had stayed largely stable in 2019 even as the economy slowed amid a...

CCP Virus Devastated China’s Poultry Industry

News Analysis China’s lockdowns, strict quarantines and travel restrictions on hundreds of millions of its citizens to contain the spread of the CCP virus...

More Articles Like This

- Advertisement -
Thailand Business News