Large Chinese companies have fully returned to work as a result of the successful fight against the new coronavirus epidemic. This was announced on Friday by the official representative of the state statistical office of China Mao Shengyong.
“Objectively speaking, the process of restoring the activity of Chinese enterprises was successful, large companies resumed work by 100%. As for small and medium-sized commercial organizations, their situation is also better than expected: the figure exceeds 80%,” he said at a press conference.
According to the official, logistics costs have been falling in the country as companies have recently resumed operating. “However, as the situation in foreign markets becomes more difficult and domestic consumption has weakened, [Chinese] enterprises are facing difficulties such as insufficient demand and a reduction in the number of orders,” Mao Shengyong said.
As he noted, in such a difficult situation, the Chinese government is forced to work out response measures, such as lowering taxes and various state fees, providing additional financial support to businesses, and helping enterprises restore production.
“Companies have to solve a lot of problems, so in the next stage we will take even more intensive strategic measures, which will also be more targeted,” the official representative concluded.
He also noted that the pandemic has caused great difficulties in the Chinese employment market and the situation will be even more difficult in the future.
“There are still very significant difficulties in employment. This is especially true for the upcoming stage when the negative impact of the pandemic on the economy will increase even more”, he said at a press conference. First of all, this is due to a reduction in orders and insufficient demand. In such conditions, it is very difficult to solve issues related to employment among the population”.
According to the official, seasonal workers from rural areas and University graduates are the most vulnerable in this situation.
At the same time, Mao Shengyong noted that the authorities are still coping well with this problem. Thus, the unemployment rate in Chinese cities in March was 5.9%, down from February by 0.3%. Officially, the average employee of the country’s companies spent 44.8 hours a week working last month — 11.5% more than in February.