“It is known that the preventive measures taken earlier had a significant adverse effect on the activities of, first of all, small and medium-sized enterprises. It is not surprising that in such a situation, many of our citizens experienced problems with employment,” Xue Fuqi , a professor at the Chinese Academy of Social Sciences, in an interview with CGTN.
Small businesses in China are mainly individual ventures. According to the State Administration for Market Regulation of the People’s Republic of China, the number of individual entrepreneurs in the country currently stands at 111 million. Each individual entrepreneur hires an average of two to three more workers. Thus, they provide jobs for about a third of the total working-age population of the PRC.
“These are people who do business within the neighborhoods. Previously, the neighborhoods were completely closed due to several cases of COVID-19. As a result, the small individual entrepreneurship has become the most vulnerable to the impact of the coronavirus epidemic. According to the latest official data, about 60 percent of small businesses are still operating at a loss,” recalls Konstantin Shchepin, an analyst at CGTN.
The beneficiary of the liberalization of anti-COVID measures is the migrant workforce, whose number reaches 300 million people in China
“Now, with the geography of lockdowns being reduced to houses, porches, flats and even apartments, they have been given oxygen: private shops, restaurants, small businesses have resumed their work. This will become an instant boost to the economy China,” he says.
The second beneficiary of the liberalization of anti-COVID measures is the migrant workforce, whose number, according to some estimates, reaches 300 million people in China. “You need to understand that the migrant workforce in China are not just hard workers from the villages. They are also white-collar workers who, being separated from their immediate workplace, could work remotely. However, this style of work is often it turned out to be inefficient More Also, the builders, the maintenance personnel, etc. to make money, ”says the CGTN analyst.
The professor from the Chinese Academy of Social Sciences, for his part, emphasized the importance of easing anti-COVID measures to increase the confidence of consumers and companies in the markets. “The biggest advantage of the new policy is, of course, related to the business planning horizon, the restoration of economic activity of economic entities, when clarity finally comes,” the expert noted.
“In addition, the government is taking a whole package of additional measures to stimulate consumption, investment and exports, create new jobs and reduce the tax burden and costs for enterprises,” Xue Fuqi recalled. “We hope that, taken together, the measures taken will allow companies to significantly intensify their activities, be optimistic about economic development next year. Compared to the situation in the world as a whole, China looks very prosperous. We can say that it came out from a difficult situation with minimal losses,” the expert concluded.