Friday, March 06, 2020

With the Coronavirus, Mask Options Just Aren't Available If You Are Sub-Scale

In China, large corporations such as Apple Inc. supplier Foxconn Technology Co. have started their own mask assembly lines just to meet its workers’ needs. That option simply isn’t available if you are sub-scale.

And while bigger companies in China are largely back in operation, two-thirds of smaller ones still couldn’t get their employees to work as of last week, according to Beijing’s own government briefing.

Some say the situation could be even more dire in the U.S.  For example:
In its latest global financial-stability assessment, the International Monetary Fund found that while Chinese SMEs remain highly profitable — and large, state-owned enterprises are economic drags — the situation is just the opposite in the U.S. American SMEs are in the worst financial shape among countries in the survey, which looked at more than 1.3 million companies across major global economies. Over 60% of SME corporate debt is issued by borrowers that don’t make enough profit to cover their annual interest payments. In times of distress, it’s unclear that banks and the private-loan market will allow smaller businesses to refinance.
Read more about the state of China and determine for yourself whether they have a handle on things.

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