Digitalizing Small Businesses

The Chinese Government gives craftsmen and traders a much-needed leg up after the epidemic

- Ge Lijun

Small businesses are rapidly developing in China. On July 14, the Ministry of Commerce and six central departments issued a joint statement with a view to promoting small businesses through digital upgrading and Internet platforms.

Small businesses have always been close to consumers and they play a crucial role in fostering employment, consumption and economic vitality. According to statistics from the Fourth National Economic Census, the number of registered craftsmen and traders in China has reached 83.53 million, generating more than 200 million jobs.

Small businesses have recently experienced a digital transition in China and the government has taken various measures to help them overcome hurdles caused by the COVID-19 epidemic.

Online migration

According to WeChat Pay, from January to May, the number of small businesses nationwide increased 2.36 times compared with the same period last year, while the number of transactions increased fivefold. The epidemic has wreaked havoc on sales and the sector is in dire need of digitalization. Chinese e-commerce platforms, such as Alibaba, JD.com and Meituan, have thus offered their support throughout the first quarter.

In Shanghai, for example, Xiaoquexing, a massage parlor, turned to Meituan. Its turnover has skyrocketed and is eight to 10 times higher than other similar businesses. Thanks to digitalization, the online booking rate now exceeds 90 percent.