Since the outbreak of the epidemic, the country’s industry and commerce have come to a standstill, and small and medium-sized enterprises have borne huge risks. Central ministries and commissions to local governments have introduced support policies to alleviate the difficulties of small and medium-sized enterprises. As the epidemic has been alleviated, companies are steadily resuming work. At the same time, new problems are emerging, and the impact on the national economy is gradually becoming apparent.
Central and local policies Summary
According to incomplete statistics, various central ministries and commissions issued a total of 35 notices and opinions during the epidemic. It involves all aspects such as taxation, employment, insurance, transportation, export, intellectual property rights, safety protection, corporate water and electricity, etc.
Beijing
Beijing issued the “Several Measures of the General Office of the Beijing Municipal People’s Government on Coping with the Impact of the Pneumonia Epidemic of New Coronavirus Infection and Promoting the Sustained and Healthy Development of Small, Medium and Micro Enterprises”. The measures include 16 policies to promote the healthy development of small, medium and micro enterprises from three aspects: reducing the burden on small and medium-sized enterprises, increasing financial support, and ensuring the normal production and operation of enterprises.
Shanghai
Shanghai released the “Shanghai People’s Notice of the Government on Issuing Several Policies and Measures to Support the Stable and Healthy Development of Service Enterprises in Shanghai’s Efforts to Prevent and Control the Epidemic.” The notice involves a total of 28 policies, including fully supporting enterprises in fighting the epidemic, effectively reducing the burden on all types of enterprises, increasing financial assistance to enterprises, focusing on assisting enterprises to stabilize employment, promoting the resumption of work and production in an orderly manner, and optimizing services for enterprises. Six major aspects including service business environment.
Guangzhou
Guangzhou released the “Guangzhou People’s Notice of the General Office of the Government on issuing fifteen measures to support the healthy development of small, medium and micro enterprises in winning the battle against epidemic prevention and control.
Shenzhen
Shenzhen issued the “Shenzhen City’s Response to New Several measures to support enterprises in overcoming the difficulties caused by the coronavirus-infected pneumonia epidemic.”
Hangzhou
Hangzhou issued the “Hangzhou Municipal People’s Government’s Notice on Strict Implementation of Several policies for epidemic prevention and control to help enterprises resume work and production.
All parts of the country are resuming work in an orderly manner
Currently, most of the country The region has gradually resumed work. According to reports on provincial government portals, the resumption rate of enterprises above designated size in all provinces across the country is basically above 50%. In some provinces, such as Guangdong, Zhejiang and other provinces, the resumption rate has exceeded 80%.
Resumption of work situation across the country
Transportation The transportation industry, petrochemical industry, steel industry, etc. have basically achieved full resumption of work. Key grain processing enterprises and large supermarket chains related to people’s livelihood have a very high rate of resumption of work and production.
Resumption of work in some industries
Provinces and cities across the country are advancing the resumption of work of key projects under construction in an orderly manner. According to reports from the people’s governments of some provinces and cities across the country, among the 551 provincial-level major projects in Zhejiang Province, which has the highest resumption rate, 483 have resumed work, with a resumption rate of 87.70%.
Resumption of work of major engineering projects in some provinces and cities
Data source: Guoyan.com
The State Post Bureau issued a notice to officially launch the second phase of resumption of work and production in the postal express industry, striving to restore the industry’s production capacity to 60% by the end of the month. above.
Resumption of work of express logistics
Information Source: Compiled by the Financial Research Department of Guoyan.com
Resumption of work in the textile industry
According to China Yarn According to the results of the online survey of key domestic textile machinery, fiber and cotton textile enterprises, most textile machinery and chemical fiber enterprises in the country have resumed production except for key epidemic areas. The situation in spinning mills varies from place to place. Xinjiang and Ningxia have basically not started operations. In addition to the difficulty in staffing the place, government control is also relatively strict. The resumption of work situation in Shandong, Henan, and Jiangsu is relatively good, while the start-up rate in Zhejiang and Guangdong is relatively low. Regions and companies with a high proportion of non-local employees will have difficulty starting operations.
Industry insiders are generally pessimistic about the market situation after the epidemic. First, there is still serious oversupply in the industry. Second, once the peak season of the export market is missed, it will be difficult to make up orders. Third, there was a large amount of sales of conventional products before., inventories in all aspects remain high. Some companies are more optimistic and believe that the market will have a small peak.
The survey results of the China Cotton Textile Industry Association on textile clusters show that most textile cluster companies began to resume work around February 15, while areas with relatively severe epidemics and their surrounding areas The start-up time of cluster enterprises is expected to be after March. As of the 18th, the clusters that have resumed work are mainly relatively large-scale leading enterprises. Relatively few small businesses in the cluster have started operations, and the average operating rate is less than 40%.
The China Industrial Textiles Industry Association conducted a survey on 106 industrial textile companies. Among the 106 enterprises, 67 have resumed work, with a resumption rate of 63.2% and a return rate of workers of 56.5%. Among the companies that have resumed production, raw material companies, product companies, and equipment companies in the mask, medical protective clothing, and disinfectant wipes industry chain have basically resumed production, and orders are relatively sufficient, while companies in other fields are not very open. Ideal; the return rate of workers in companies with mainly local employees exceeds 80%, while the return rate of workers in companies with a high proportion of non-local employees is relatively low. The resumption of work and production of large enterprises is significantly better than that of small and medium-sized enterprises. The main difficulties encountered by enterprises in resuming work and production are: the poor flow of materials and personnel caused by traffic control, and the increase in transportation costs; it is difficult for non-local employees to return to work; it is difficult for enterprises to purchase anti-epidemic materials; insufficient demand and declining orders.
As a traditional manufacturing industry, the textile industry involves many intermediate links and a long industrial chain. The integrity of the supply chain is a prerequisite for industry recovery. The epidemic has interrupted the original supply chain, causing many mismatches between supply and demand. In order to restore the supply chain as soon as possible, priority should be given to ensuring the survival of some small, medium and micro enterprises at the end of the supply chain. At present, the government has introduced a series of support measures, such as providing financial support to prevent the capital chain from being broken, gradually reducing social insurance premiums to reduce corporate costs, and the government deploying employees, etc., to provide a good business environment to ensure the smooth supply chain. In addition, industry insiders also put forward the following three suggestions:
First, provide policy support for companies to delay the payment of wages. 60% of the costs of small and medium-sized enterprises are labor costs. During the epidemic period, the biggest financial pressure on small and medium-sized enterprises is that they cannot start work but still have to pay a large amount of personnel wages. The government can introduce some measures to allow companies and employees to jointly discuss deferred salary payments to cope with the pressure caused by the epidemic.
The second is to coordinate the cooperative relationships between upstream and downstream enterprises in the supply chain. In response to disputes caused by upstream raw material supply companies resuming work and production due to the impact of the epidemic, resulting in failure to perform delivery contracts on time, the government should introduce some temporary policies to allow these companies to negotiate among themselves to solve problems, and at the same time coordinate the upstream and downstream relationships in the supply chain. Help enterprises establish good cooperative relationships.
The third is to enhance service awareness and communicate more with enterprises to provide epidemic prevention guidance. For example, many companies do not have protective equipment and cannot ensure the safety of their employees. The government must help provide these supplies. </p
