A worker operates at a production line of Chongqing Hwasdan Machinery Manufacturing Co., Ltd. in southwest China's Chongqing Municipality, Feb. 22, 2025. In recent years, the local government has launched a series of policies for the high-quality development of the city's private sector, covering areas such as technological innovation, market expansion and financial support. In 2024, the economic value added of Chongqing's private sector reached 1.98 trillion yuan (about 273 billion U.S. dollars). (Xinhua/Wang Quanchao)

In the first quarter of 2025, the development index of Chinese small and medium-sized enterprises (SMEs) rose significantly, reaching the highest level since 2020, according to data released by China Association of Small and Medium Enterprises (CASME) on Thursday.

In the first quarter, the development index of SMEs in China came in at 89.5, an increase of 0.5 points compared with the fourth quarter of last year, with companies in social services, industry, transportation, and information transmission and software topping the performers. 

The operating rate of SMEs continued to rise, with the proportion of fully operational enterprises increasing by 11 percentage points compared with the previous quarter, according to CASME.

Ma Bin, the executive vice president of the CASME, said that the package of incremental pro-growth policies last year coupled with the revitalization of holiday-inspired consumption helped accelerate the production and operation of SMEs in the first quarter this year.

Surveys by the CASME show that the development expectations of SMEs continued to improve in the first quarter, with costs slightly decreasing, which has significantly boosted corporate efficiency. 

Industries such as information transmission and software, social services, wholesale and retail, transportation, and industry have seen a steadily improving market demand. Additionally, investment willingness increased among enterprises in five sectors, including social services and construction.

Global Times