While China tries to shake off omicron, the country’s zero-Covid policy sets small businesses up for a third year of stop-and-start uncertainty.
Businesses are looking to government policies for a clearer sense of whether it's worth sticking it out for another year, the analyst said. Right now"small businesses don't have enough confidence. They can't see how the pandemic will pass."
China has stuck to its zero-Covid policy in the two years since, while other countries have shifted to a looser"live with Covid" policy in the last several months. The mainland has reported far fewer Covid cases or deaths relative to other major countries. If the Covid situation remains severe, policymakers would allow more flexibility in how close GDP comes to thesaid Zong Liang, chief researcher at the Bank of China, noting that growth above 5.1% is also possible.
The small business PMI ticked up to 46.6 in March from 45.1 in February, while that for medium-sized businesses fell below 50 for the first time since October, according to official data released Thursday. PMI for large businesses held above 50 with a 51.3 print.
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