Beijing and local governments will help businesses produce at full capacity after the Tet holiday was extended due to the flu epidemic, with priority given to industries serving essential needs.

According to a mid-week announcement by the Chinese Ministry of Commerce, supermarkets, wholesale stores, grocery stores and convenience stores will receive support from the Ministry and related industries.

On February 4, Shandong province announced a plan for businesses to restore production operations at full capacity by the end of this month.

Accordingly, Shandong will restart operations of all businesses in the province, with priority given to infrastructure services and necessary needs such as hospitals, energy and logistics.

`Shandong province’s decision to resume production at full capacity is a positive sign that the economy is starting to return,` said Yang Weiyong, associate professor at the University of Economics and International Business in Beijing.

Yang believes that more localities (except those severely affected) will soon return to full production capacity with measures to prevent workers from being infected.

China Petrochemical Corporation workers inspected gas pipes in Henan province at the end of January. Photo: ChinaDaily

Other provinces such as Son Tay provide detailed regulations and support policies but do not have a timeline or specific sectors that must restart business activities.

Liu Chunsheng, Associate Professor of International Trade at Central University of Finance and Economics, said that the above moves are necessary to ensure daily life and economic growth.

Joe Zidle, Chief Executive Officer and Strategy Officer at Blackstone Group, said that policymakers in China are taking measures to minimize negative impacts on the economy, including reopening the market.

For small and medium-sized enterprises (SMEs) – a group susceptible to major impacts from the nCoV epidemic, up to now, more than 10 provinces have launched support measures such as providing quick loans with low interest rates and temporary postponement.

Suzhou City, Jiangsu Province introduced 10 measures to strengthen financial channels, reduce taxes and fees, and  stabilize employment for SME enterprises.

Meanwhile, businesses that do not cut workers will receive back 50% of the unemployment insurance they paid last year.

Similar policies are also applied by the governments of Beijing, Shanghai, Chongqing, and Shandong…

Ao Yanjie, owner of Beijing Union Smart Energy – an SME enterprise with 10 employees in the energy sector, said he is looking forward to real effects from the government’s support measures.

`Our business has built a reputation with customers and investors, but the epidemic has disrupted financial resources and cash flow for startups like us. We really need quick and easy support from

Experts say that these actions can help stabilize the operations of SMEs to ensure jobs and protect the economy.

`SMEs are an important force in the Chinese economy in terms of employment, tax payments and exports but are relatively vulnerable to the epidemic,` said Zhou Mi, senior researcher at the Academy of Commerce.