China reopens but businesses struggle to lure back consumers
BEIJING (AP) — The Daronghe restaurant in Chengdu in China’s west has reopened but, with business down by half, its staff of 150 come to work on alternate days.
Three months after China declared victory over the coronavirus and started to reopen its economy, the restaurant is among thousands of small businesses that are struggling to lure back skittish consumers nervous about the virus and possible job losses.
“People still worry about eating out,” said an employee, Ming Yuan. “We are giving customers coupons in hopes they will come back.”
Official data show many Chinese industries, from auto manufacturing to e-commerce, are returning to pre-virus activity levels. But retailers, restaurants and other businesses that employ millions of people were hit especially hard. That raises questions about how fast the economy can generate new jobs for people who lost theirs in the pandemic.
“The Chinese economy is recovering, but very, very slowly,” said Iris Pang of ING.
China faces a bumpy road to recovery. Demand for exports is weak as infections rise in the United States, Brazil and other markets. Summer flooding set back the recovery in some southern areas.
Already soured by a tariff war, relations with Washington have worsened further over a security law imposed on Hong Kong.
The Trump administration has revoked some of Hong Kong’s trading privileges. That threatens to undercut its status as a major port.
The slow pace of China's recovery is sobering for countries that are struggling to manage their own viral outbreaks.
In the United States, businesses in some states reopened in May. Employers added a surprise 2.5 million jobs that month. But that followed losses in March and April that have left roughly 30 million Americans unemployed.
Analysts expect...
