Reconciling SME Production in China with Coronavirus Control   [open pdf - 450KB]

From the Document: "With the steady decline in new confirmed cases of coronavirus in China beyond Hubei Province, public scrutiny has increasingly shifted to the economy affected by the outbreak, particularly the impact on the plethora of small and medium enterprises (SMEs). An earlier CGD [Center for Global Development] note explored the impact of coronavirus on SMEs using data from the Enterprise Survey for Innovation and Entrepreneurship in China (ESIEC) and follow-up interviews. In this accompanying note, we consider how SMEs can resume production without compromising epidemic control. For now, a key challenge for SMEs is the delay in work resumption due to epidemic control. To effectively control the coronavirus outbreak, a delay in work resumption is undoubtedly necessary. However, SMEs are struggling in the face of financial and operational difficulties due to the delay. We argue that there is no one-size-fits-all solution to resuming production, and that place-based policies that reflect local conditions offer the best approach to balancing SME production and public health concerns. We recommend that decision-making be passed to local governments and entrepreneurs, allowing them to address specific problems and seek the most reasonable and viable work resumption solutions."

Center for Global Development. Posted here with permission. Document is under a Creative Commons license and requires proper attribution and noncommercial use to be shared: [https://creativecommons.org/licenses/by-nc/4.0/]
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