Many companies will China close in 2020?

Starting in March, all walks of life in China began to resume work. People stayed at home for more than two months. Many people's moods changed from tension to leisure, and now they are anxious.

 It's not just the bosses who are anxious. Many employees find that their rents and mortgages are still being paid, the holidays are extended, they can't go to work, and their salaries aren't.

Whenever there is no money it is a big problem.

More than 700 companies closed down in February, but getting fewer wages is also better than the company suddenly closing down. In February, more than 700 companies have closed down, and this number should be exceeded. 

Statistics show that more than 55% of catering businesses in China have resumed work, but compared to the same period last year, affected by the epidemic, 78% of catering companies have lost more than 100% of their operating income, and another 16% of them have lost over 70%. 

This year's sudden outbreak, the impact of the catering industry is the first. Many companies have also begun to say that the pressure for long-term closure is too great, and various costs are making it impossible to sustain cash flow.

For those small and medium-sized enterprises with ordinary operating conditions, it is even more difficult to operate under the impact of this epidemic, and not only the worried bosses but also the employees who need to make money to support their families and even repay their loans. At present, in the catering industry that is most affected by the epidemic situation, the shop staff is implemented in batches to resume work. It is understood that some companies pay wages only as a guarantee.

However, affected by the epidemic, some industries have benefited instead. Everyone was confined to the home, and the takeaway industry became just needed. In the past two months, the value of catering takeaway transactions and orders in major cities across the country has increased significantly. 

To prevent cash flow problems, many catering companies, which have not done delivery before, have now started delivery services, such as time-limited take-out and fresh delivery. Due to restrictions on going out, people’s desire for consumption has not decreased but has increased. Few people even started to hoard food and some necessities.

Beginning in March, various industries began to resume work, and the catering, retail, and transportation industries began to resume operations. The resumption of work is to restore production and economy, not to say that the epidemic has passed, so all industries and industries have established standards and requirements for resumption of work. 

Relative to the recovery of production, the recovery of consumption is lagging, so the second quarter of this year is very important. The second quarter can get out of the predicament and the stable development in the second half of the year!

I believe that the most difficult time in China has passed and everything will be fine!