Small businesses on the Chinese mainland delivered resilient growth in 2025 despite rising uncertainty in international markets, according to CPA Australia’s latest Asia-Pacific Small Business Survey.
More than half (54%) of surveyed companies reported business growth last year. The survey pointed to innovation and expansion into new markets as the main drivers behind that performance.
Hiring conditions were broadly steady. In 2025, 36% of small businesses increased headcount, a similar number to the prior year.
Innovation emerged as a standout differentiator. One third of respondents said introducing new products or services supported their business in 2025, the highest share across the 11 Asia-Pacific markets in the survey and the strongest reading for the Chinese mainland in a decade.
That push is expected to continue. The report said 85% of the small businesses surveyed plan to innovate in 2026.
Market diversification also strengthened. In 2025, 32% said entering new markets contributed positively to performance, up from 28% previously and the highest level among surveyed markets.
Looking ahead, 61% expect their businesses to grow in 2026.
On the cost front, 28% cited rising costs as the biggest negative factor in 2025, the lowest proportion across the markets covered.
Transportation and storage remained the most commonly reported cost pressure for the third consecutive year.
Technology investment continued to underpin expansion and innovation. In 2025, 59% of small and medium-sized enterprises (SMEs) said their technology spending boosted profitability.
AI was a major focus. Close to half (48%) said AI was the area where they invested most heavily in 2025, the highest share among surveyed markets and above the survey average of 32%.
Financing conditions also improved. In 2025, 67% reported easy access to external finance, with more than half expecting similar conditions this year.
Debt servicing remained manageable. The survey found that 56% said paying debts was easy in 2025 and 61% expect this to remain the case in the year ahead.
Environmental, social and governance-related activity featured in business planning. In 2025, 34% of small businesses focused on supply chain sustainability, while 33% invested in renewable energy.
CPA Australia’s North China Committee president Lloyd Peng said: “Rising geopolitical uncertainties are affecting SMEs globally, not just those in the Chinese mainland. Businesses involved in outbound activity are facing more volatile trading conditions and higher logistics costs.
“SMEs should strengthen risk management against supply chain disruption, closely monitor cash flow amid fuel price volatility, and, where feasible, consider progressively shifting to renewable energy to support longer-term cost resilience.”
