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A worker at an industrial factory. Adobe Stock.

Survey: China’s Small and Medium-sized Enterprises Rebounded After the COVID-19 Lockdown, But Economic Problems Linger

To understand the impact of the lockdown on China’s SMEs and the extent of their recovery, the Enterprise Survey for Innovation and Entrepreneurship in China project team conducted two rounds of telephone interviews in February and May 2020. The survey probed SMEs’ work resumption and production situation, the main difficulties they faced, their efforts to adapt, demands for appropriate assistance policies, and the reach of lockdown-related business assistance programs.

A worker working on wood floors in a factory in Zhejiang, China. Photo by ILO, via Flickr

COVID-19’s Impact on China’s Small and Medium-sized Businesses

Since the COVID-19 outbreak began in Nov. 2019 in Hubei Province, China, business activity in the world’s second-largest economy has ground to a halt. China’s small and medium enterprises (SMEs), which generate 90% of employment, constitute 80% of exports, and account for 70% of GDP, have been hit particularly hard.