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                                        Chinese online business service gears up to help SMEs resume work

                                        2020/2/17 10:05:16   source:CGTN

                                        As China fights the coronavirus epidemic nationwide, an economic battle is also unfolding as companies resume work.

                                        Experts point out that ensuring the stability of the industrial chain and supply chain is vital for the survival of enterprises. Especially for SMEs, an appropriate expansion of government spending, a further cut in taxation, and a reduction in the cost of financing are essential to help them get over the difficulties brought on by the health crisis.

                                        However, with many companies and employees still not back at work, the pressure is intense for manufacturers and entrepreneurs that are testing new and innovative products.

                                        Liu Zhiyong, the CEO and CTO of ZhenRobotics in Beijing, is a co-designer of a delivery robot and is eager to solve the problems of demand and supply.

                                        According to Liu, a graduate of Tsinghua University, his top priority is to push production along urgently and to find the means to manufacture the robots on time for clients, although many manufacturers are not yet back at work.

                                        "Orders are now about six times higher than they used to be. Our engineers have been working remotely, and we hope to start production next week and solve the current supply and demand problem," Liu told CGTN, echoing the sentiments of many SMEs.

                                        Beijing Zhizao Kongjian Tech, where Liu's new design is expected to materialize soon, belongs to I-M-WAY, located in Zhongguancun, referred to locally as China's Silicon Valley. The lab has created an innovative eco-chain community centered on the industrialization of innovative technologies, where SMEs can book services online, speedily and efficiently.

                                        Li Tiesheng, the general manager of the lab said, "ZhenRobotics is manufacturing and testing the main control boards in the robot, the structural parts of the exterior. Our lab worked 12 hours a day before the Spring Festival, but now, many manufacturers haven't resumed work. Hopefully, we will see a gradual increase in demand."

                                        For high-tech companies, the resumption of manufacturing may be a make-or-break situation.

                                        Some SMEs report a degree of pressure on their cash flows, with construction companies and service companies saying their losses could exceed net profits for the whole of last year if the epidemic continues for three months without significant improvement.

                                        Experts said some entrepreneurs are currently trying to reduce all unnecessary expenses and reduce the outflow of cash in order to survive. In the short term, they are affected by the need to compensate employees for layoffs and fear that it will be difficult to recruit new workers until after the outbreak improves.

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                                        Sponsor:Information Office of Shandong Provincial People’s Government

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