Bridging the Gaps: China’s SMEs and the Promise of Inclusive Digital Finance
Event description
This presentation begins by outlining China's current macroeconomic context, characterized by subdued external demand, significant property sector adjustments, and persistent pressures on domestic consumption. It then analyzes the state of China's vast small and micro-enterprise (SME) sector—a critical engine for growth and employment—drawing on recent data from the Online Survey of Small and Micro-enterprises (OSOME). The OSOME findings illuminate the intensified challenges facing SMEs in this constrained environment, including sluggish demand, cash flow constraints, cost pressures, and lingering pandemic impacts. The talk further explores how the rapid adoption and deep integration of digital finance, particularly digital payments, have become increasingly vital for SME survival and adaptation. The analysis shows that while ubiquitous payments provide SMEs with a crucial transactional backbone, significant barriers persist in utilizing deeper financial services—such as credit, insurance and investiment services—essential for sustained growth. This exposes a "thin foundation" beneath the surface success of digital transactions. The conclusion discusses the intertwined trajectory of SMEs and development of digital finance, highlighting key vulnerabilities—notably the gap between transactional inclusivity and access to substantive financial depth—and the resulting policy implications for sustaining this vital segment of China's economy amid ongoing macroeconomic headwinds.
About the Speaker
Dr. Sherry Tao Kong, Associate Research Professor, is Head of Research at Peking University's (PKU) Institute of Social Science Survey and a Senior Research Fellow at the PKU Institute of Digital Finance. She also teaches Quantitative Analysis for Area Studies at the PKU Institute of Area Studies.
Prior to joining Peking University in 2012, Dr. Kong was a Research Fellow at the Australian National University (ANU) (2006-2012), conducting research on labor migration and its impacts in China and Indonesia. Earlier, she served as an Economist Consultant to the World Bank (2005-2007).
Her current research focuses on income distribution, China’s middle-income group (MIG), Micro-, Small- and Medium-sized Enterprises (MSMEs), and the digital economy (e-commerce and fintech) in China and Southeast Asia.
The ANU China Seminar Series is supported by the Australian Centre on China in the World at ANU College of Asia and the Pacific.
Tickets for good, not greed Humanitix dedicates 100% of profits from booking fees to charity
