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| Business performance of China's small and medium-sized enterprises improved in 2023 on the back of the gradual resumption of work and production after the COVID-19 pandemic, alongside a package of supportive policy measures, the latest data showed on Wednesday. |
| Analysts said the improvement indicates the steady recovery of business activity among SMEs after the COVID-19 shocks. |
| China's Small and Medium Enterprises Development Index, based on a survey of 3,000 SMEs, averaged 89.2 in 2023, up from 88.4 in 2022, said the China Association of Small and Medium Enterprises. |
| However, the index declined from 89.3 in November to 89 in December. For the fourth quarter, the index came in at 89.1, from 89.2 in the third quarter. |
| "Despite some fluctuations, the latest figures point to a continued recovery trend," said Hong Yong, a research fellow at the Chinese Academy of International Trade and Economic Cooperation's e-commerce research institute. |
| "This indicates that SMEs made certain progress in development last year, driven by a steady consumption rebound, growth in services consumption, recovery in fixed-asset investments and the vigorous development of high-tech industries." |
| Hong said the country introduced a series of policies last year aimed at promoting growth of the private sector, which has created a better development environment for SMEs and significantly boosted their confidence. |
| Looking ahead to 2024, he believes development prospects for SMEs will continue to improve with existing policies taking effect gradually and more supportive measures in the offing. |
| China has already pledged efforts to bolster its private sector, mostly SMEs, as the National Development and Reform Commission on Tuesday held a meeting with five private companies to address private enterprises' concerns and support their sustainable development. |
| Zheng Shanjie, head of the NDRC, said at the meeting that the commission will carefully review the opinions and suggestions of participating entrepreneurs and establish a mechanism for cross-regional and cross-departmental coordination to solve problems. |
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