A company boss told employees that in south China, 80 percent of private companies rely on exports to survive. Now that these companies are losing their overseas customers from Europe and North America, a huge wave of layoffs is foreseeable.
As long as the United States is struggling to combat the pandemic, there will be no improvement for China’s economy. Our business model is to produce about 85 to 90 percent of our products for export. In south China, 80 percent of private companies rely on exports, just like our company. How can we ever rely on China’s domestic demand? All our production is geared for export.
No export means bankrupt factories. Bankruptcy means the Chinese will become jobless and not have income. It’s a chain reaction. Make sense? The current economic situation is very severe. Any company that can still pay regular salaries to its employees is simply outstanding!
There are currently 74.2 billion yuan ($10.5 billion) of credit card debt and hundreds of billions of yuan mortgage debt that cannot be paid on time. Are you aware of that?
Right now I am paying you basic salaries, and you can pay your mortgages, you are among the lucky ones!
U.S.-based Chinese commentator Wen Zhao pointed out that Chinese leaders gravely erred when obstructing Western countries’ efforts to evacuate their citizens and shut down borders to China.
Western countries suffered huge losses from the pandemic as a result, both in terms of human lives and economically. Their losses, in turn, would deal a devastating blow to China’s economy.
Wen said that in the handling of the pandemic, China’s top leaders chose the path that would lead to the worst consequence for China itself.