A recent survey has found nearly 90 percent of China's small and medium-sized businesses are optimistic about the market prospects in Asia, particularly the Chinese mainland.

Eighty-eight percent of the small and medium-sized companies based in China's mainland predicted sustained economic growth, according to the survey on Asian businesses conducted by United Parcel Service Inc. (UPS), the world's top parcel delivery group, in 12 countries and regions in the Asia-Pacific.

Meanwhile, 69 percent of them report significant increases in business turnover during the past 12 months and 79 percent trust their business will further expand in 2005.

The survey also found that Chinese mainland-based small and medium-sized firms have more ambitious recruitment plans than their counterparts elsewhere in Asia. About 62 percent of them plan to employ more people, compared with the average 46 percent for businesses across Asia.

In Asia as a whole, 73 percent of the small and medium-sized business owners surveyed readily agreed that the Chinese mainland economy is gathering ground and companies there are more competitive.

Their comments about China's prosperity and competitiveness as a global manufacturing center also vary. Forty-three percent of the businesses said it's a good sign and will bolster the regional economic growth, 27 percent said the impact is negative, 17 percent said both are likely and 12 percent said it is of little or no impact.

Eighty-eight percent of the business leaders surveyed said information technology and telecommunications will remain as two pillar industries across Asia.

On China's mainland, however, 97 percent of the respondents said the public sector and energy sector are playing a leading role in boosting economic growth. About 87 percent said finance is the pillar industry, and 86 percent believed the top priority should be given to transportation, logistics, IT and telecommunications industries.

The survey was conducted between August and September in 2004, mainly through telephone interviews. The businesses surveyed, all small or medium-sized firms with less than 250 employees, include dealers of automobiles, electronic products, textile and garments, gifts, household supplies, healthcare products, jewelry, optical instruments, toys and sports facilities. Their annual turnover averages between 500,000 and 10 million US dollars.

Source: Xinhua