What are the main supply chain issues facing Chinese SMEs?

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Most Chinese Small and Medium-sized Enterprises Face Significant Supply Chain Disruptions Post-Outbreak

A substantial majority of small and medium-sized enterprises (SMEs) in China have not yet resumed operations following the novel coronavirus epidemic, primarily due to severe supply chain obstructions. These disruptions are significantly hindering their ability to restart and operate effectively.
Transport Disruptions Hamper Operations

Ongoing transport disruptions are a primary obstacle for Chinese SMEs. These issues make it difficult for employees to commute to work and have critically impeded the shipment of essential raw materials. This lack of material flow directly affects production capabilities and the overall resumption of business activities for these enterprises.
Widespread Reopening Challenges for SMEs

While some industries have begun to restart, only approximately three in 10 SMEs have managed to get back to work. This low rate of operational resumption underscores the widespread impact of the epidemic and the subsequent shutdown measures on the smaller business sector.
Financial Strain Amidst Operational Halt

The prolonged closure and supply chain issues are creating significant financial pressure on SMEs. Reports indicate that at least six in 10 small firms are at risk of depleting their cash reserves within the next two months, jeopardising their ability to meet regular payment obligations. SMEs constitute a significant portion of China's economy, accounting for around 60 per cent, making their struggle a critical concern.

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What are the main supply chain issues facing Chinese SMEs?

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