Chinese banks, insurers step up financial support for businesses hit by mudslide disaster

Chinese banks and insurers have stepped up financial support and services for businesses affected by the devastating mudslide that hit the border port of Gyirong in southwest China's Xizang Autonomous Region, the National Financial Regulatory Administration said Tuesday.

Banks have already granted credit totaling 79 million yuan (about 11.65 million U.S. dollars) to businesses affected by the disaster and those supporting disaster relief and the provision of essential supplies.

They have also issued 32 loans totaling 53.53 million yuan (about 8 million U.S. dollars) to related businesses and individuals.

This support comes as cross-border trade and tourism in the region are struggling to stay afloat in the aftermath of the natural disaster.

Nepalese restaurant owner Nima Lama has lived and worked in the town of Gyirong for 17 years. Now, he faces a difficult choice.

"We are in big, huge loss because every day our expenses is, I think, almost 1,500 yuan, over the rent, staff's salary and staff's expenses. So it's very difficult to cover at this moment because no business at all," he said.

Since the border crossing was destroyed in the mudslide, Lama now has to order ingredients from Nepal through other, more distant border crossings, which means higher transport costs.

"We plan to stay for one year. If this business goes exactly what is going at the moment, if it's the same, then we'll leave within three months because we can't pay the rent and staff salaries," he said.

The disaster has also taken a toll on tourism. For the hospitality sector, the impact has been immediate.

"From May to October, the hotel used to be fully booked. But now only around 60 rooms are occupied," said Tseten Gyatso, who works at a hotel in the town.

By the start of this week, local authorities had helped 365 Nepalese border residents who wished to return home cross the border. Many were migrant workers. Their departure is adding pressure to local businesses already struggling with disrupted supply chains.

"Most of our fabrics are imported from Nepal. We have stocked enough materials for about two years. But if our workers cannot return soon, production will be difficult," said Cizhen Jiacuo, owner of a down jacket store.

Chinese banks, insurers step up financial support for businesses hit by mudslide disaster

The 2026 China Business Report, released on Thursday by the American Chamber of Commerce in Shanghai (AmCham Shanghai), revealed a significant rebound in business confidence among its surveyed member companies operating in China.

Business confidence bounced back markedly, as 58 percent of respondents expressed optimism about China's five-year business outlook, up 17 percentage points year on year, the report said.

Profitability rebounded to its highest level since 2019, with 78 percent of respondents profitable in 2025, an increase of 7 percentage points from the 2024 level, according to the report.

As business confidence rebounded and more companies reported profits, investment confidence in China also strengthened, resulting in 28 percent of respondents increasing investment in China last year, the highest level in four years.

Improved market sentiment is also reflected in a positive assessment of China's business environment. Fifty-five percent of surveyed companies said the business environment in China is transparent, up 7 percentage points year on year.

Jeffrey Lehman, chair of AmCham Shanghai, attributed the positive change to eased bilateral tensions and shared expectations for more stable and reciprocal economic and trade relationship, as the two leaders of states reaffirmed multiple times in the past year.

"We do our surveys In June, and so in June of 2025, there was a lot of anxiety among our members about the geopolitical situation. After that, we had the meeting of the leaders in Busan. We had the summit in Beijing in May, the agreement between the two countries that they would try to create a constructive relationship of strategic stability based on fairness and reciprocity. And that is very reassuring to our members because that suggests that there will be a stable environment in which they can operate well. If anxiety about geopolitics slips, that means then, that the number one concern is the continuing improvement in the quality of domestic competition," he said.

The report is based on AmCham Shanghai's 2026 China Business Survey of 262 member companies.

AmCham Shanghai report shows sharp rebound in business confidence among member companies