The Chinese government will provide increased financial support to small and medium-sized enterprises in the hospitality and tourism industries. This was reported by the Chinese regulator for banks and insurance. The two sectors have suffered considerably from the strict corona measures, according to former ambassador Ron Keller.
According to Keller, China’s SMEs are an “hugely important leg” of the Chinese economy that already received support at the time of the corona crisis, but now more support has been promised. “About 60% of the national income is earned in this industry and 90% of companies in China are SMEs,” Keller said. “And the scoop that is now coming to the top is particularly true for the hospitality and tourism sector, because there is now a huge outbreak due to the unexpected release of the lockdown measures.”
The support can therefore be seen partly to absorb the blows of the corona, and Keller therefore thinks those sectors can still be saved. “It’s not certain they’re dying,” she continues. ‘In the Netherlands we also kept the sectors afloat with support. That in itself means that China is somewhat following the pattern that we have been following in recent years. But with a delay, they’ve obviously had that zero covid policy for a long time. Now they’re just starting to get used to the fact that you have to let go of the economy too, and that’s not going to happen overnight.’
The economy goes on
According to Keller, they will try to maintain the current economic infrastructure with the extra support. ‘This is good news, because the corona virus will pass one day. Even in China,” she says. “The fact that the Chinese economy seems to be opening up a bit more and the access of foreigners is becoming wider is also good for the Chinese economy. And for the global economy.’
But when it comes to diplomacy between China and other countries, aid will bring little more. “It doesn’t matter much,” concludes Keller. “Our strategic view on China, determined by long-term developments, is not improving much. So in that regard, I think our critical eye will continue to exist for a while.’
Source: BNR
Sharon Rock is an author and journalist who writes for 24 News Globe. She has a passion for learning about different cultures and understanding the complexities of the world. With a talent for explaining complex global issues in an accessible and engaging way, Sharon has become a respected voice in the field of world news journalism.
