China's SMEs continue recovery momentum in July

China's small and medium-sized enterprises (SMEs) continued their recovery momentum in July 2023 amid strengthening policy support for the private economy and investment, data from an industry association showed Wednesday.

The SME development index gained 0.2 points to 89.3 last month, the China Association of Small and Medium Enterprises said.

Six of the eight sub-indices rallied in July, according to the association.

Sub-indices for the real estate and social service sectors both went up 0.3 points last month, marking the most significant increases among all sectors tracked.

Sub-indices for the industry, transport, postal service, storage, and catering sectors grew 0.2 points, respectively.

Sub-index for the information transmission, computer service, and software sectors edged up 0.1 points last month.

Bucking the upward trend, sub-indices for the construction and wholesale sectors both dipped 0.1 points during the period, according to the association.

In China, more than 90 percent of private companies are SMEs, and more than 90 percent of SMEs are private companies.

The private sector contributes approximately 50 percent of China's tax revenue, 60 percent of its GDP, 70 percent of its technological innovation, and accounts for 80 percent of its urban employment.

To provide an improved environment for the private economy, China will work to remove barriers in market access and fully implement policies and mechanisms for fair competition, Li Chunlin, deputy head of the National Development and Reform Commission, said in July.