Some 50 percent of Chinese entrepreneurs are optimistic about their companies' prospects and are particularly concerned about the reform of corporate income tax, according to a survey by the Development Research Center (DRC) of the State Council.

According to the survey, nearly half of Chinese entrepreneurs consider their companies were operating "well", and some 40 percent thought management was adequate. Over 39 percent were confident of improvement, and 55.2 percent expected no great changes.

Over 47 percent of the surveyed enterprises expected their orders to increase, 39 percent considered orders would remain static, and only 13.2 percent thought the number would decrease, which indicated rise in demand and sound economic trends.

Meanwhile, 55.2 percent of surveyed managers considered that corporate income tax required immediate reform, 54.2 percent called on reforms of individual income tax, while value added tax and export tax rebates also drew concern.

However, while China is stepping up reforms of monopolized industries, 34.1 percent of the surveyed enterprises claimed that they had not seen any results of the reform.

According to the survey, most of the Chinese enterprises were lacking in skilled staff. Nearly 80 percent were short of technicians, and over half suffered from a lack of senior managers.

(Xinhua News Agency November 24, 2003)