According to industrial data, China’s small and medium-sized firms (SMEs) experienced an increase in activity in January 2023 as the nation’s economy continued to grow steadily. Last month, the SME Development Index increased to 88.9, reversing its prior negative trend.
The indicator has increased by 1 point since December 2022, which is the most over the previous two years. It is based on a survey of 3,000 SMEs. The sub-indices for eight different industries all increased in value in January, with the transport and storage industries posting the highest gains, according to the China Association of Small and Medium Businesses.
The Chinese government has been supporting SMEs with initiatives including tax breaks, fee reductions, and easier access to credit. According to local media sources, China’s economy has been recovering quickly, with its gross domestic product (GDP) expanding 8.1% in the fourth quarter of 2022 due to a recovery in exports and more consumer spending.
