The Association of Small and Medium Enterprises of China said that the activities of small and medium enterprises (SMEs) improved in June 2022 due to the return to normalcy. The government has eased measures to curb Covid-19, and supply chain stagnation has gradually dissipated as economic expansion measures are enforced.
According to the report, the small and medium business development index reached 88.4 in June, up 0.2 points from May after falling for four consecutive months.
The rebound of the index followed a stable recovery of the Chinese economy. This was reflected in key economic indicators such as industrial value-added production and foreign trade, which improved in May.
The subindex for the eight sectors recovered in June compared to May. The accommodation and food services sector posted the strongest increase.
Overall, SMEs are expected to recover well, but the association warned of a more complicated external environment, weak market demand and difficulties in business management. They called for the implementation of additional support measures to encourage SME growth.