AbstractCircular economy is beneficial to solve the conflict between the environment and development. The study combines the material flow in human society with the evaluation of the regional circular economy. Through the evaluation method combining DEA and rank‐sum ratio, the development level of circular economy in this area is evaluated from both vertical and horizontal perspectives (time level and space level). The result shows: (1) from the point of view of material input, direct material input, total material demand and total material consumption all show an upward trend. The overall resource input is relatively large. (2) In terms of material output, the emission is increasing. But the growth rate is relatively slow. The emission reduction effect is outstanding. The resource output rate showed a continuous growth trend. Economic development is less dependent on the massive consumption of natural resources. (3) In terms of material circulation, the import volume of natural resources outside the province in the southwest region increased. Solid waste recycling is not high. (4) Judging from the evaluation results, the development level of Sichuan's circular economy is relatively stable. Followed by Chongqing and Guizhou. However, the level of development in Yunnan fluctuates greatly. The material consumption rate in Southwest China is higher than the economic growth rate. Resource input and resource consumption are still relatively large. Although some environmental indicators have improved, there are still serious resource and environmental problems in the future economic development of the western region that need to be paid attention. © 2023 Society of Chemical Industry and John Wiley & Sons, Ltd.