China's small and medium-sized enterprises (SMEs) demonstrated strong business performance in the first quarter of this year, with the SME development index reaching its highest level since 2020, according to the China Association of Small and Medium Enterprises (CASME) on Thursday.
The index, based on a survey of 3,000 SMEs from eight major industries, came in at 89.5 in the first quarter, up 0.5 points from the previous quarter.
SMEs in sectors such as social services, industry, transportation, and information technology led the way in performance.
Over the first three months of the year, the operational rate of SMEs continued to rise, with the proportion of fully operational enterprises increasing by 11 percentage points compared to Q4 of last year.
"The index has grown for two consecutive quarters, reaching its highest level since Q1 of 2020. The improvement can partially be attributed to the enduring effects of a series of policies introduced during last year's meeting of the Political Bureau of the Communist Party of China Central Committee. In addition, the boost in holiday consumption and proactive measures taken by local authorities to support a strong start have also played a role in the accelerated recovery of SME operations in Q1," said Ma Bin, executive vice-president of the association.
According to the association, SMEs' development expectations continued to improve in Q1, with a slight decrease in costs contributing to a noticeable improvement in business performance.
In terms of the market index, five of the eight sectors surveyed, including information transmission and software, social services, wholesale and retail, transportation, and industry, saw significant increases, reflecting steady market demand.
Furthermore, investment sentiment improved in five sectors including social services and construction.
China's SME development index hits new high since 2020
Authorities on the Chinese mainland have put forward a package of 10 policies and measures to boost exchanges and cooperation across the Taiwan Strait.
The Taiwan Work Office of the Communist Party of China (CPC) Central Committee unveiled the package on Sunday, saying it aims to advance the peaceful development of cross-Strait relations and enhance the kinship and well-being of compatriots on both sides of the Strait.
The announcement came as a delegation from the Chinese Kuomintang (KMT) party, led by its chairwoman Cheng Li-wun, is wrapping up a mainland visit from Tuesday to Sunday.
Efforts will be made to explore the establishment of a regular communication mechanism between the CPC and the KMT, and an institutionalized platform will be set up to promote two-way exchanges between young people from the two sides of the Taiwan Strait, the office said in a statement.
Steps will be taken to push the coastal areas of Fujian Province -- the mainland province closest to Taiwan -- to share water, electricity, and gas supplies with Kinmen and Matsu, and promote the construction of sea-crossing bridges linking the two areas, when conditions permit.
The mainland will fast-track the full resumption of regular direct flights across the Taiwan Strait, including flights to and from mainland cities of Urumqi, Xi'an, Harbin, Kunming and Lanzhou.
Kinmen will be supported to use the new airport built in its adjacent city of Xiamen in Fujian Province.
A communication mechanism will be set up on the common political foundation of adhering to the 1992 Consensus and opposing "Taiwan independence" to facilitate the entry of Taiwan's agricultural and fishery products that meet the quarantine standards into the mainland.
The mainland will explore building wharves and berths in regions where conditions permit for distant-water fishing vessels from the Taiwan region, and mull providing convenience for the sale of their fish catch on the mainland, according to the statement.
It will also facilitate registration procedures for qualified Taiwan food manufacturers and the entry of their food products into the mainland market.
According to the statement, the mainland will explore the establishment of more trading markets for small-ticket items with Taiwan, and support micro, small and medium-sized enterprises from Taiwan to expand business on the mainland.
The statement noted that qualified TV shows, documentaries and animations from Taiwan can be aired on the mainland, adding that people from Taiwan can participate in micro drama production on the mainland in various forms.
The mainland will also promote the resumption of individual tours for Shanghai and Fujian residents to Taiwan, the statement said.
Mainland unveils package of policies, measures to boost ties with Taiwan
