Coronavirus Impact: Many Chinese companies are facing losses, economic activity come to standstill
Coronavirus Impact: Many Chinese companies are facing losses, economic activity come to standstill
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Director Brigita, one of China's largest car dealers, is confused at the moment. It does not have many options to save their company, because the company's 100 outlets have been closed for the past one month due to coronavirus. The company is running out of cash and banks are not giving loans easily. It is just the story of one company, but millions of Chinese companies are struggling to save their existence. These companies have not yet received any special benefit from all the measures taken by the government.

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Coronavirus has captured more than 75,000 people. Due to this, China's economy has almost stopped. In a recent survey on small and medium-sized companies, it has been revealed that only one-third of the companies have only one month's worth of cash left. A third of the companies say that they have cash equivalent to the expenditure of two months.

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The Chinese government has cut interest rates to control the situation. Banks have been asked to relax the rules to give more loans and companies to start operations twice. At the moment, many of the crores of businessmen in China say that they are not getting funds for the payment of loans and salary. Many of these companies may be closed without any financial help. El Changsun, an analyst at Beijing Zhonghe Yingtai Management Consultant Co, says that if China fails to stop the virus in the first quarter of this year, a large number of small companies are at risk of being shut down.

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