Many small businesses in China are facing a cash crunch as customers stay away due to coronavirus fears, but they still have to pay wages and rent. Photo: EPA-EFE

China eases US dollar debt rules, but dollar squeeze presents new challenge for firms facing cash crunch

  • China has eased restrictions on US dollar debt to allow private firms and small businesses to borrow up to 250 per cent of net assets
  • But ability of Chinese businesses to borrow in the US dollar market has been hindered by a global squeeze in dollar liquidity and concerns over creditworthiness
Topic |   China economy

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Many small businesses in China are facing a cash crunch as customers stay away due to coronavirus fears, but they still have to pay wages and rent. Photo: EPA-EFE
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