Data Shows Small and Medium-Sized Enterprises in China on the Decline

China's private sector struggles to survive under the country’s zero-COVID strategy and economic downturn

A man walks on the street during a scheduled lockdown break in Shanghai, on May 23, 2022. Hu Chengwei/Getty Images

Small and medium-sized businesses in China have suffered dearly under the country’s dynamic zero-COVID policy amid an economic downturn. Since February 2022, China’s Small and Medium Enterprise Development Index (SMEDI) has declined for three consecutive months.

“Nearly all customer flow, logistical flow, and cash flow [for small and medium-sized private businesses] have stranded,” Mr. Ma, a small business owner in Shanghai, told The Epoch Times on May 21 in an exclusive interview.