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China survey finds private firms face tough conditions amid weak demand
Dacheng Enterprise Research Institute said nearly 60 percent of respondents reported payment arrears eroded profits, while electronics profits rose 96.9 percent year on year on AI demand.
A new survey of China’s private sector points to a widening split in business conditions, with many firms reporting persistent pressures including intense competition, weak domestic demand and ongoing payment delays, according to SCMP Economy.
The Beijing-based Dacheng Enterprise Research Institute surveyed 79 entrepreneurs from medium and large private firms and found more than 70 percent described their current business conditions as difficult or very difficult. The think tank said nearly 60 percent reported mounting accounts receivable gradually eroding their profits, and warned that some companies have been pushed into financial distress as a result.
The report also highlighted a sharp divergence across sectors. About one-fifth of surveyed companies reported increases in both revenue and profits, with gains concentrated in emerging areas such as artificial intelligence, semiconductors and advanced materials.
That uneven picture aligns with official data released on Monday, SCMP Economy reported. Profits in China’s electronics industry surged 96.9 percent year on year, driven by AI-related demand, while automobile manufacturing profits fell 19.5 percent and ferrous metal smelting profits declined 25 percent.