CHINA-ECONOMY: LOSSES CAUSED BY THE CORONAVIRUS EPIDEMIC
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A broad survey of American companies in China released on February 18, showed that more than three-quarters also have insufficient staff to run a full production line. Global electronics giant Foxconn, which employs more than 400,000 on the Chinese mainland, is struggling to fill its factory floors after officially resuming operations February 17. A China Cuisine Association survey reported that around 95% of caterers experienced major losses over the Lunar New Year. The report said the impact of the coronavirus outbreak on China’s restaurants, fast-food joints and snack stands will be several times greater than that caused by the SARS outbreak of 2003. Besides losses over the holiday, businesses are likely to face serious cash flow issues and difficulty obtaining financing in coming months.
Meanwhile, to encourage companies to resume work amid the coronavirus outbreak, the Ministry of Transport said on February 15 that China’s roads will be toll-free starting February 17. The policy will be in force until the epidemic is deemed to be over. China has also decided to provide medium-term funding to banks and cut the interest rate it charges as officials seek to cushion the economy from the epidemic.
The Educational Testing Service announced on February 17, that all scheduled exams for the TOEFL English language proficiency test on the Chinese mainland in March have been canceled. Administrators of other English language proficiency tests, which Chinese students must pass to study abroad, made similar decisions.
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