China's small firms cautiously optimistic on 2019 outlook

China's small businesses are cautiously optimistic amid the anticipated global economic downtrend in 2019, China Daily reported Wednesday, citing an industry report.

The result of small businesses' performance from the Chinese mainland bettered the survey average, with 74 percent of them stating that they grew in 2018, higher than the survey average of 66 percent, said Derek Chan, president of CPA Australia North China Committee, adding the positive conditions would continue in 2019.

The findings follow extensive surveying of more than 3,600 small business operators in 10 markets, including Australia, China, Indonesia, Malaysia and the Philippines. It was conducted by CPA Australia, one of the world's largest accounting bodies.

The survey showed increasing costs are one of the most significant barriers to small business in the Chinese mainland, with over 33 percent of the surveyed businesses identifying it as a "key challenge."

To help ease companies' burden, China introduced a series of tax reforms since last year, and it plans to reduce the tax burdens and social insurance contributions of enterprises by nearly 2 trillion yuan (about 298 billion U.S. dollars) this year.

"Deeper reforms on value added tax, commencing on April 1, will further relieve the pressure on small businesses and boost economic activity," said Kevin Ng, member of CPA Australia North China Committee.

The survey also found that 34 percent of Chinese mainland's businesses expect easy access to finance, higher than the Asia-Pacific average of 23 percent.

Chan considered the government's announcement during this year's two sessions on increasing the availability of finance for small businesses as "timely" measure, which will further improve small businesses' access to finance.

(ASIA PACIFIC DAILY)