How many small and medium enterprises have resumed operations?

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Approximately Three in Ten Small and Medium Enterprises Have Resumed Operations

Following the national shutdown triggered by the coronavirus epidemic, only about three in ten small and medium-sized enterprises (SMEs) in China have managed to resume operations. This situation highlights the significant challenges these businesses face in restarting their activities, including ongoing supply chain obstructions and difficulties with worker travel. SMEs constitute a substantial portion of China's economy, accounting for approximately 60 per cent, making their struggle a critical concern for the overall economic landscape.
Resumption Rate of Small and Medium Enterprises

Industry ministry spokesman Tian Yulong stated that as of the reporting period, roughly three out of every ten SMEs had returned to work. This figure underscores the widespread impact of the epidemic and the measures taken to contain it, which led to the closure of schools, factories, and railways, extending the Lunar New Year holiday.
Obstacles to Reopening

Ongoing transport disruptions are a major impediment to SMEs reopening and operating at full capacity. These obstructions make it difficult for workers to travel to their workplaces and prevent the timely shipment of essential raw materials required for production. This logistical challenge directly impacts the ability of businesses to restart their operations smoothly.
Economic Significance of SMEs

Small and medium-sized businesses play a pivotal role in China's economy, representing around 60 per cent of its total economic output. The prolonged shutdown and operational difficulties faced by this sector are therefore having a considerable impact on the broader economic health of the nation. A survey cited by the Economic Daily indicated that at least six in ten small firms were at risk of depleting their cash reserves within the next two months to cover regular payments.
Contrast with Larger Industries

In contrast to the struggles of SMEs, key industries dominated by larger firms appear to be in a more robust position. For instance, the steel industry was reported to be operating at nearly 70 per cent capacity, and rail freight had almost returned to normal levels. Officials have also pledged financial and tax support for smaller enterprises, particularly those in the transport, catering, and tourism sectors, to aid their recovery.

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How many small and medium enterprises have resumed operations?

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