China’s private-sector split widens as tech rises, traditional sectors struggle: survey
Most entrepreneurs polled cite problematic payment delays and intense competition, even as AI, semiconductors and advanced materials lift profits
Many of China’s private firms continue to face tough operating conditions, including intense market competition, persistent payment delays and weak domestic demand, though technology firms have shown stronger momentum, according to fresh survey results.
The recent survey of 79 entrepreneurs from medium- and large-sized private firms found that more than 70 per cent of respondents described their current business conditions as difficult or very difficult, according to the Beijing-based Dacheng Enterprise Research Institute.
Many respondents said they were struggling with narrowing profit margins, persistent survival pressures and weak market confidence, the think tank said in an article about the findings, posted to social media on Saturday.
“Payment arrears remain a widespread problem,” the article said, noting that nearly 60 per cent of respondents reported that mounting accounts receivable had gradually eroded their profits. “Some companies have even been pushed into financial distress as a result.”