Taiwanese businesses in China hit hard by COVID-19 pandemic: CNFI

Taipei,  A majority of Taiwanese businesses operating in China are now facing tough times because of the COVID-19 pandemic, the Taipei-based Chinese National Federation of Industries (CNFI) said Monday.

More than 80 percent of business owners have said their revenue had declined significantly this year, the CNFI said, citing a recent survey conducted from July 7 to August 25 among its 157 members.

Many of them are small to medium-sized businesses, and they cited falling overseas orders and restrictions on personnel and logistics movements as the greatest obstacles brought by the pandemic.

Roughly 49.2 percent of those polled said their manufacturing capacity currently remained at 70 percent, while 6.9 percent responded that their operations had yet to resume since the pandemic hit, the survey found.

Since the pandemic, more than half of the Taiwanese businesses said they have either scaled down production, begun working remotely from home, or imposed furloughs as ways to stay afloat.

Of the 157 companies surveyed, 65.7 percent of respondents said they were not too optimistic about market conditions for the remainder of the year, while 80 percent said they will not be expanding their investment in China within the next two years.

Given the difficulties Taiwanese businesses are facing, the CNFI again urged the government to help the companies get through the difficult times.

In a white paper published by the CNFI in late August, it called on the government to tailor its industrial bailouts to short, medium and long-term policy goals to better help affected businesses.

The CNFI also urged the government to launch as soon as possible its Bailout 3.0 program, which has a NT$210 billion (US$7.14 billion) budget and is mainly designed to assist pandemic-hit companies in the manufacturing sector.

The government carried out the first two bailout programs totaling NT$210 billion in assistance in March and May, but they were mainly targeted at lessening the financial impact of pandemic-hit companies and workers.

The Bailout 3.0 program still has to be passed by the Legislature.

 

Source: Focus Taiwan News Channel

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