China’s small and medium businesses further recovered in Q2: small business association

Source:Global Times Published: 2020/7/6 22:13:40

An employee assembles fiber optic cable products at a factory in Huaibei, East China's Anhui Province on Saturday. With the arrival of the 5G era, enterprises throughout the city have taken the opportunity to speed up the production of optic cable products. The annual output for optic cable products is approximately 100 million yuan ($14.15 million) for the city. Photo: CNSphoto



China's small and medium businesses continued to recover in the second quarter amid the COVID-19 pandemic, as the Small and Medium Enterprises Development Index (SMEDI) reached 85.5 - 3.5 points higher than the first quarter, China Association of Small and Medium enterprises said Monday.

The result of the SMEDI, which is between zero to 200, indicates the operation status of Chinese small and medium businesses in eight major sectors, including sales and services. An index lower than 100 means that enterprises are facing contraction while a figure higher than 100 means their businesses are booming.

According to the association, that the index has increased amid the pandemic shows that initial results of China's major tasks to ensure stability in six sectors including employment and foreign trade have been achieved.

The general index also shows that the confidence of small and medium businesses is recovering while their expectations are also increasing. 

The index in the transportation sector, for example, increased to 75.6 in the second quarter from 73.1 in the first quarter, while the industrial sector increased by 3.9 points to 86.3. 

Based on the result of survey on Chinese companies, the industrial enterprises have the highest operation resumption rate of 93.17 percent in the second quarter, while the lowest rate of 84.4 was in the construction sector, the association said.

As the coronavirus is still spreading quickly globally, which poses huge challenges for  international trade and global supply chains, there is still a long way to go for China's economy to further recover as the number of all of eight major sectors is still below 100, the association warned.



Posted in: ECONOMY

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