New Delhi, Oct 1 (KNN)  Small manufacturing units in China are finding it hard to cope up with demand slowdown along with over-capacity in the face of weaknesses in global economy.  

Though there was a marginal improvement in the official Purchasing Managers' Index (PMI) at 51.1 in September from August's 51, small units in particular are seen struggling.  
“Small companies are facing difficulties," a Chinese official was quoted in the Chinese media monitored here.  The sub-index (PMI) for small firms stood at 48.4 in September against 48.8 in August.  On the other hand, the sub-index for large units went up to 52.1 from 51.8.

Commentators see China’s economic recovery as short-lived due even though the government had loosened policy and pushed up infrastructure investment and slashing taxes for the small units.  According to government estimates, China is projected to grow by 7.5 per cent in 2013, the slowest in over two decades.  (KNN/PC)