China’s medium-sized firms looking to grow in 2023
Most of China’s medium-sized firms are optimistic about their business expansion in 2023, a new survey by HSBC has found.
Some 77% of the companies surveyed expected business revenue growth next year, the report said. For these firms, improved efficiency from technological innovation and increasing domestic demand will be the two main drivers of business growth.
About 75% of the Chinese medium-sized enterprises that took part in the survey plan to expand into new overseas markets, according to the report.
Economic recovery in China is being boosted by initiatives rolled out by many of the major cities across the country.
In southern China’s Guangdong province, the Shenzhen city government has helped companies reduce their costs by more than 150 billion yuan ($21.56 billion) through various policies this year, said Wang Jun, deputy director of the city’s Development and Reform Commission.
To boost consumer demand, Shenzhen has provided subsidies to encourage its citizens to buy hybrid and new energy vehicles, Wang said.
To encourage spending and rejuvenate the hospitality sector, the city’s authorities are promoting local events, offering discounted tickets for State-owned attractions until the end of March 2023. And shopping malls and street businesses in Shenzhen are being allowed to extend their hours of operation.
Many cultural, sports and artistic events are being planned in the city. The list includes the Nanshan Marathon, the Bi-City Biennale of Urbanism Architecture, Glow Shenzhen 2022 and the Golden Oyster Food and Folk Culture Festival, Wang said.
In Shenzhen’s Futian district, 1.68 billion yuan ($242m) was paid out to local companies that were facing financing difficulties, benefiting more than 14,000 enterprises and 15,000 business owners.
“Futian district also encourages local companies to participate in exhibitions and trade fairs abroad to increase their global reach,” said Li Zhidong, a senior Party official of the district.
One of the country’s most popular tourist destinations, Chengdu, in Sichuan province, is also taking steps to boost its tourism sector, which is a vital part of its economy. City authorities are offering discounted tickets for cultural events and entertainment, to encourage people to spend more.
Tax breaks boost Beijing economy
The capital, Beijing, has introduced a number of measures to both relieve financial pressures on businesses and boost economic growth. Measures include reducing taxes and fees – official figures show that the total tax and fee reductions, refunds and rebates in Beijing have reached 200 billion yuan ($29bn) so far this year, and 920 million yuan ($132bn) of arrears owed by small and medium-sized enterprises has been cleared.
Earlier this year, Beijing introduced a policy that allowed businesses working in sectors such as catering, retail and road and railway transportation, to delay their social insurance payments, a measure designed to keep them afloat, and to protect people’s jobs.
The city of Guangzhou, in Guangdong province, is also introducing measures to boost its economic growth as the country continues to recover from Covid-19 restrictions.
The southern city “should lose no opportunity to recover its economic vibrance in the weeks to come”, said Chen Yanchuan, deputy director of the Guangzhou Bureau of Commerce.
“In addition to organizing trade delegations go abroad to attract foreign investment, the city’s commercial bureau provides guidance for international business executives to arrive in Guangzhou through optimization of the inbound prevention and control process,” Chen said. “Now foreign CEOs and senior executives can be organized to have business talks in a closed loop environment upon arrival.”
Meanwhile, Guangzhou will explore other ways of encouraging more consumer consumption, introducing new measures and organizing a series of promotion events in the weeks to come, Chen added.
Ke Xiandong, deputy director of the Guangzhou Bureau of Culture, Broadcast, Television and Tourism, said a series of cultural, sports, tourism and theatrical events will be organized to help attract tourists and boost spending.
