The China Economy Program, together with Australian Centre on China in the World, successfully hosted Dr. Sherry Tao Kong(Associate Research Professor, 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).
This seminar was successfully organised by the China Economy Program and the Australian Centre on China in the World and took place in person at the Seminar Room, Australian Centre on China in the World.
This presentation began by outlining China's macroeconomic context at the time, which was characterised by subdued external demand, significant property sector adjustments, and persistent pressures on domestic consumption. It then analysed 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 illuminated the intensified challenges facing SMEs in this constrained environment, including sluggish demand, cash flow constraints, cost pressures, and lingering pandemic impacts. The talk further explored how the rapid adoption and deep integration of digital finance, particularly digital payments, had become increasingly vital for SME survival and adaptation. The analysis showed that while ubiquitous payments provided SMEs with a crucial transactional backbone, significant barriers persisted in utilising deeper financial services—such as credit, insurance, and investment services—essential for sustained growth. This exposed a "thin foundation" beneath the surface success of digital transactions. The conclusion discussed the intertwined trajectory of SMEs and the 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.
This seminar is a joint initiative between the Australian Centre on China in the World and Crawford School of Public Policy's China Economy Program.