Chinese enterprises face difficulties because of “Zero COVID-19”

The whole city of Shanghai (China) has been placed under a blockade order, after recording a continuous increase in the number of COVID-19 cases.

Yuyuan Road is an iconic landmark in Shanghai, with small shops lining both sides of the road. After the blockade order, all shops here had to temporarily close business.

Erdingmen Hutong Restaurant is one of them. This restaurant opened in November 2021 and is quickly becoming a hot spot for lovers of local flavors.

Before the outbreak of COVID-19 this time, customers often had to wait at least 20 minutes to get a seat. However, at present, this restaurant can only expect a few orders.

Research from Peking University Social Sciences Survey Institute shows that more than 46% of small and micro enterprises went from break-even to loss in the fourth quarter of 2021. (Illustration image – Photo: Xinhua)

“In the past, we were not too dependent on online orders, so when the blockade order was imposed, we had to find other ways to survive,” said Peng Chong, owner of Ermending Hutong restaurant.

Although the restaurant has set up an online platform to provide delivery services, according to the restaurant owner, the average number of orders daily is only about 30-40 dishes.

A clothing store not far away was in a similar predicament.

“Everyone has now raised awareness of epidemic prevention measures, everyone is working from home. The number of visitors to the store has been significantly affected,” said Ms. He Mou, manager of Randomvent Shanghai restaurant. shall.

Research from Peking University Social Sciences Survey Institute shows that more than 46% of small and micro enterprises went from break-even to loss in the fourth quarter of 2021. In the first months of this year, the epidemic broke out, prices escalated, and it became even more difficult for small and micro businesses.

To deal with these difficulties, the Chinese government has introduced many tax cuts and eliminated many fees and charges. The Shanghai government alone spends more than 22 billion USD to support in the field of food business, services, tourism; free 3 – 6 months rent.

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