The 10th survey sampled 3,539 enterprises in the manufacturing, construction, transportation, telecom, real estate and service sectors.

The majority of entrepreneurs have positive comments about China's economic restructuring over recent years.

However, some problems should be noted in economic development, including the insufficient exploration of domestic demand, a lack of human resources, capital and information, and the gap between different regions, respondents said.

Business people said they expected the government to more quickly change its role within the system, faster reforms of State-owned enterprises (SOEs) and the establishment of a social security system.

The respondents think China's economic performance achieved a sound level last year, despite the bleak world economic environment.

Good Perspective

More than 57 percent of respondents said the situation was normal, almost 14 percentage points higher than the last survey.

About 25 percent believe the situation is a little cold or too cold, almost six and four percentage points lower than in 2001 and 2000 respectively.

More than two-thirds of those surveyed regard the government's present investment level as adequate. But more than half of respondents regard the private investment level as unsatisfactory.

In terms of exports, more than 60 percent of respondents said export demand was insufficient, having dropped almost 7 percent from last year.

Although individual spending surged in autos, telecommunications and real estate, entrepreneurs still frowned on inadequate domestic consumption and expressed their desire to explore China's large demand potential.

Almost 61 percent of respondents regard consumption as unsatisfactory, rising about 10 percentage points compared to 2001.

More respondents showed an optimistic view about company performance this year.

More than 44 percent of entrepreneurs said performance looked to be up while over 10 percent said it will get worse.

Generally, respondents from State owned enterprises (SOEs), businesses in China's western regions and the commercial and catering sector were more negative than others.

More non-State enterprises are optimistic, 37 percentage points higher than those with negative perspectives.

The figure among SOEs almost hit 20 percentage points.

Respondents in industries including the real estate, construction, transport, garment and electronic sectors are more optimistic than others.

More than 34 percent of respondents think the domestic market environment after China's World Trade Organization (WTO) entry benefits company operation. Still, more than 48 percent said it had little influence, while almost 18 percent feel it had a negative impact.

More surveyed enterprises from the plastic, instrument, electronic, professional equipment and garment sectors said the post-WTO environment in China was favourable.

Regarding the overseas market environment after China became a WTO member, more than 36 per cent of respondents have a positive view, about half said there was no change and about 14 per cent have suffered no backlash.

More entrepreneurs from the garment, medicine, electronic, instrument, textile and plastic sectors think the overseas market change brought by the WTO was beneficial to them.

Strong Desire to Invest

The survey showed respondents had a strong will to invest, especially private investors.

More than 56 percent of enterprises plan to increase investment this year, much more than the 20 percent who plan to cut it.

Among SOEs, the number planning to increase investment was about 18 percentage points higher than those expecting to cut it. Respondents said the supply of human resources far exceeded their demand while at the same time, they feel short of human resources in some areas.

More than 75 and 70 percent of enterprises said the supply of technical and management professionals failed to meet their demand.

(China Daily February 24, 2003)