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People's Daily Online>>China Business

Business climate 'tougher'in China

By Wei Tian and Yu Ran (China Daily)

13:26, November 27, 2011

Workers make spectacles in a factory in Wenzhou, Zhejiang province. A new survey shows that companies are facing an even tougher business climate now than during the 2008 global financial crisis. (China Daily Photo)

BEIJING/SHANGHAI - Chinese companies are facing even tougher business conditions now than during the 2008 global crisis, according to a survey of more than 4,000 companies. The findings resulted in experts calling for less government intervention and more support for the private sector to improve the business environment.

Among the seven sub-categories of the research, conditions for companies in the fields of human resources, financial services, the legal environment, government administration, and infrastructure have worsened.

However, progress has been made in intermediary services and the social environment, according to the Business Environment Index for China's Provinces 2011 Report.

The findings follow a three-part survey of businesses nationwide, conducted in 2006, 2008 and 2010. More than 90 percent of the 4,230 companies interviewed in 2010 were small and medium-sized enterprises (SMEs).

Non-State-owned enterprises contributed more than 90 percent of the sample, and more than 70 percent of the companies surveyed operate in the manufacturing sector.

The survey is based on both the operational data from companies and the opinions of business owners, who were asked to grade each category from one to five, with five being classified as "very good". The average score improved significantly between 2006 and 2008, but declined in 2010.

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