Abstract
Small and medium-sized enterprises (SMEs) are vital drivers of China’s economy. As in any other country, SMEs in Chinaare exceptionally exposed to the devastating effects of the COVID-19 outbreak. The aim of the paper is to assess the impact of the pandemic on SMEs in China and study the effectiveness of the government’s support for SMEs through the crisis. The methodologies applied by the authors included the historical and logical method, the method of the rising from the abstract to the concrete, synthesis, comparative factor analysis, grouping and graphical methods, as well as a systematic and statistical approach. The authors investigate the main policies and initiatives launched in support of smaller businesses and implemented by the People’s Bank of China, the Ministry of Finance, the National Development and Reform Commission, the Ministry of Industry and Information Technology, as well as by the two national regulatory authorities –– China Banking and Insurance Regulatory Commission and China Securities Regulatory Commission. In this paper the authors analyze the direct and indirect support available to SMEs through financial institutions. The study leads to the conclusions that the state support for SMEs has been effective and helped to avoid a sharp decline in production. However, the spread of the disease in other countries may threaten the recovery of the Chinese economy.
Highlights
ORIGINAL PAPERA B S TRACT Small and medium-sized enterprises (SMEs) are vital drivers of China’s economy
The continued spread of coronavirus disease 2019 (COVID‐19) has led to delayed resumption of work, traffic control, business closure and restrictions on population movement in many provinces and cit‐ ies, which have a significant impact on national economic growth in the short term, especially for small and medium-sized enterprises (SMEs) that are strongly associated with economic fluctuations
The People’s Bank of China and the financial regulatory authorities have successively introduced a number of policies to enhance the financial service capacity of financial institutions to achieve the dual objectives of guiding capital flow into the real economy and maintaining financial stability
Summary
A B S TRACT Small and medium-sized enterprises (SMEs) are vital drivers of China’s economy. As in any other country, SMEs in China are exceptionally exposed to the devastating effects of the COVID‐19 outbreak. The aim of the paper is to assess the impact of the pandemic on SMEs in China and study the effectiveness of the government’s support for SMEs through the crisis. In this paper the authors analyze the direct and indirect support available to SMEs through financial institutions. The study leads to the conclusions that the state support for SMEs has been effective and helped to avoid a sharp decline in production. Financial support for small and medium-sized enterprises in China amid COVID‐19.
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