China’s private firms, in dire straits, flag critical concerns in fresh survey findings
Most polled firms lament losses, and few plan to increase investments in the foreseeable future as economic challenges mount
China’s uncertain economic outlook and subdued demand are straining the bulk of its private enterprises as they grapple with a volatile mix of fragile confidence and a pressing need for stronger policy support, according to fresh survey results from an independent research institute.
Private firms are also proactively recalibrating strategies to survive and thrive in the face of mounting derisking and decoupling pressures, according to the findings posted by Beijing Dacheng on its WeChat social media account on Thursday.
Among the 806 private firms surveyed in late November – most of them small and medium-sized enterprises scattered across manufacturing and service sectors – 52.6 per cent said the private sector was in a difficult situation, and more than 63.3 per cent said they had experienced losses or reduced profits.
Only 16 per cent of the surveyed companies planned to ramp up investment in the next two years. However, no comparison figures were provided.
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Beijing has stepped up efforts to help and also guide expectations in the private sector, which contributes more than 60 per cent of the national economic output and employs more than 80 per cent of urban workers.
