Small and medium enterprises or SMEs in China are facing the toughest business climate since the 2008 global crisis, according to a survey of over 4,000 Chinese companies, state media reported. In the report, the Business Environment Index for China’s Provinces, companies called for less government intervention and more support to improve the business environment. Among the seven sub-categories of the poll, human resources, financial services, legal environment, government administration, and infrastructure were all seen as getting worse. Progress was highlighted only in intermediary services and the social environment. The findings follow a three-part survey of businesses nationwide, conducted in 2006, 2008 and 2010. More than 90% of the 4,230 companies were SMEs, with 70% in the manufacturing sector. The most prominent complaints were about supplementary levies charged by local governments, regional protectionism and tight credit, said Fan Gang, director of the National Economics Research Institute at the China Reform Foundation, which compiled the data.
China Economic Review