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yiwu Update:2009-12-21 20:19:37 click:7482
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Yiwu, located in the central part of Zhejiang Province, covers an area of 1,105 sq km with 6 towns and 7 sub-districts and has 716,000 local residents and more than 1 million resident migrant workers. Yiwu County, established in 222 BC and cancelled in 1988 when Yiwu City was established, boasts a long history of 2,229 years. A number of celebrities with lofty ideals were born in Yiwu, among whom are Luo Bingwang, one of the four famous litterateurs in the early Tang Dynasty, Zong Ze, renowned general of the Song Dynasty, Zhu Danxi, one of the four distinguished doctors of the Jin and Yuan Dynasties and educator Chen Wangdao, literature and art theorist Feng Xuefeng and historian Wu Han in modern times.


Since the reform and opening-up, Yiwu people have taken a road of regional development with their own characteristics by adhering to the development strategy of “building the city by prospering commerce”, centered on fostering, development and upgrading of the market, and boosting the industrialization, internationalization and integration of urban and rural areas. 


In 2007, Yiwu’s gross regional product amounted to RMB42 billion with an increase of 15.7% and the general budget fiscal revenue hitting RMB5.888 billion, including RMB3.228 billion for local fiscal revenue, with an increase of 31.2% and 33.2% respectively. Personal disposable income of the urban residents was RMB25,007 and the net income of rural residents per capita was RMB10,255, with an increase of 15.9% and 16.4% respectively.


The characteristics of Yiwu’s economic and social development can be summarized in the five aspects as follows:


1. Establishing the position of international trade center for small commodities under the strategy of “building the city by prospering commerce”. In 1982, the Yiwu small commodity market was initiated in line with the development strategy of “building the county by prospering commerce”. The next 26 years saw the Yiwu small commodity market moving to five locations, expanding for 9 times, and transforming the otherwise street market and canopy market into the large-scale modern indoor trade market. Today, the Yiwu small commodity market, covering an area of 2.6 million sq m, has 58,000 stalls, collecting over 0.4 million products under 1,900 categories in 43 industries. Its market trading volume has ranked top for 17 years running among the major specialized markets nationwide. In 2005, the United Nations, the World Bank and Morgan Stanley pointed out in their joint report “the Chinese figures that astonishes the world”, that the Yiwu small commodity market is the largest commodity wholesale market in the world. Innovation is the long-lasting subject for the development of the Yiwu small commodity market. For 26 years, the organizational form of the Yiwu small commodity market has been upgraded from a humble trade market to a modern and internationalized trade center and the transaction way has also been improved from the traditional dealing in goods for sale by cash on spot to the modern E-commerce featured by order negotiation and logistic distribution. The third-phase international trade center, merged with the concept of energy conservation, environment protection and ecology, is under construction. Full efforts will be made to build it into a new market featured by the construction of settlement, credit-awarding and credit platforms, ensuring the sustainable development of the Yiwu small commodity market. Since October, 2006, the “Yiwu China Small Commodity Index” compiled by the Ministry of Commerce has been released regularly to the whole world, becoming the vane and baremeter of the international price fluctuation of commodity manufacture and trading. The Yiwu China small commodity town was awarded successively the titles of the only market in the domestic market that honors quality and keeps commercial integrity and the market that observes contracts and keeps promises by the General Administration of Quality Supervision, Inspection and Quarantine and the State Administration for Industry and Commerce.


2. Optimizing the environment to advance the development of the modern service industry. The continuous prosperity of the market brings into rapid development such modern service industries as exposition, logistics and finance. Nowadays, more than 90,000 business units in the service industry are registered in Yiwu City with over 0.5 million employees. Yiwu City was listed as one of the five major construction bases of the modern service industry during the 11th five-year plan period by the Government of Zhejiang Province. Thanks to the sound exposition environment and big internal and external markets, 15 national industrial associations and a number of famous exposition organizations at home and abroad were attracted to hold expositions in Yiwu. Consequently, the quantity, level and influence of the exposition are elevated year by year. In 2007, over 80 expositions of all kinds were held in Yiwu. Approved by the State Council, the annual China Yiwu International Commodity Fair with 4,000 international standard exposition booths, sponsored by the Ministry of Commerce and the Government of Zhejiang Province, has become the third largest national trading exposition, following the China Import and Export Fair and the East China Fair. Yiwu has become the first county-level city that was granted the right to make expositions overseas. Moreover, the shopping tourism industry has gradually become a new attractive point of Yiwu City. In the last three years, the passenger flow of the international trade center increased by 30% annually. In 2007, over 5 million tourists, including 0.3 million foreign visitors, visited the international trade center. Yiwu was awarded as China Top Tourist City, one of the Top Ten Attractive Travel Spots in Zhejiang Province and the first national 4A rated shopping tourism area. With the rapid development of modern logistics, Yiwu boasts over 600 domestic freight transportation enterprises with easy reach of more than 250 large and medium sized cities (excluding Taiwan) in China. With Offices of 17 world-renowned freight forwarding and shipping companies, Yiwu is confirmed as one of the three major customs clearance construction cities and one of the four major modern logistic centers by the Government of Zhejiang Province. The clustering effect of financial industry begins to take shape. Yiwu people gives full play the advantages of high economic growth, low banking risk and sound financial environment to perfect and strengthen the financial service system, environment and foreign currency management service, thus driving the sustainable prosperity of the financial market. Presently, there are 40 financial institutions of all kinds, including 13 banks, with 248 financial networks, 4 securities service offices and 23 insurance subsidiaries in Yiwu, making Yiwu one of the county-level cities equipped with the perfect organizational system for financial institutions in Zhejiang Province. The “Trading Credit Insurance of Yiwu China Commodities Town” offered by China Export & Credit Insurance Corporation is the first export credit insurance product customerized to facilitate receiving foreign currencies and evading foreign trade risk. The cultural and sports industries start to rise. Every year, Yiwu City sponsors over 80 national sports games including CBA league matches, national table tennis super league matches and national women’s football tournament.


3. Combining commerce with industry, putting emphasis on Yiwu-made commodities. Despite the shortage of resources and weak national industry, market-oriented Yiwu people strive to develop processing industry, starting from small commodities and gradually strengthening manufacturing industry. Today, implementing the strategy of “improving industry through commerce and combining commerce with industry” and a development pattern of manufacturing industry featured by large industry manufacturing small commodities, a large industrial cluster filled with small enterprises has come into being in Yiwu. At present, over 16,000 industrial enterprises of Yiwu City form more than 20 advantage industries engaged in knitted stockings, jewelry, arts and crafts and wool spinning. The output of jewelry accounts for 65% up of domestic market shares, stockings for 35% up and zippers for 30% up. And the outputs of a number of companies such as Zhejiang Neoglory Jewelry Co., Ltd., Zhejiang MengNa Kitting Co., Ltd. and Zhejiang Weihai Zipper Co., Ltd. have ranked top in the relevant industry at home and even in the whole world. Yiwu has been successively awarded the titles of national industrial bases for eight products, among which are pen-making, cosmetics, seamless knitting clothing and crafts & gifts. Now, the market share of the local products in Yiwu small commodity market accounts for 30% up. Moreover, Yiwu boasts 37 famous Chinese trademarks, 7 brandname Chinese products and 19 national inspection-free products.


4. Putting eyes on the global market, Yiwu has vigorously implemented the strategy of internationalization. The commodities of Yiwu small commodity market has already been exported to 215 countries and areas all over the world with the market extroversion degree of 55% up. The number of overseas passengers in the Yiwu civil airport accounted for over 40% of the total passenger volume and exceeded 0.5 million in 2007. More than 10,000 foreign merchants from over 100 countries and areas are permanently stationed in Yiwu for international purchase and more than 280 foreign children from 16 countries and areas study in Yiwu. More than 1340, one third of the total amount for the whole Zhejiang Province, representative offices of the oversea companies were approved to set up in Yiwu. Over 10 international retail groups including the United Nations refugee agency and Carrefour set up purchasing information centers in Yiwu and the United States, the Republic of Korea, Taiwan and Hong Kong established their own pavilions in the Yiwu China International Trade Center. The Yiwu merchants speed up their paces to do business abroad. There are over 2,000 Yiwu people engaged in commercial and trading business in Dubai, the United Arab Emirates and more than 50 shops set up by Yiwu people in Moscow, Russia. The Yiwu merchants busy with business can be seen all over the world. The management and service system for foreign affairs are increasingly improved. The Yiwu People’s Court is the first primary court in China with the jurisdiction over foreign civil and commercial cases. In recent years, heads of five countries including the Union of Comoros, the Independent State of Samoa and the Commonwealth of Dominica visited Yiwu, the first county-level city in China to set up entry and exit administration bureau and to handle affairs related to the administration of alien employment permit. Last year alone, Yiwu received visitors from over 300 foreign missions and government senior officer delegations.


5. Paying attention to people’s livelihood and harmonizing the society of urban and rural areas. In recent years, Yiwu government invested RMB7 billion in the infrastructural construction of urban and rural areas, increasingly perfecting the urban function. According to the data acquired through satellite remote sensing, the central area of Yiwu City covers an area of 73 sq km. The construction of new countryside is firmly advanced with completion of 400 old villages’ reconstruction and environment improvement and construction of residential areas for people who leave their hometown and strive for relatively comfortable lives. The projects for integration of urban and rural areas including wastewater and garbage treatment and drinking water supply and distribution network are of much benefit to over 90% of the population. The solution to the educational problem of more than 20,000 migrant workers’ children has promoted the balanced development of education. Besides, a comparatively comprehensive public health system was built and the social security network for urban and rural residents and new social relief and assistance system were further improved. The number of urban and rural residents who insured against medical insurance for severe diseases exceeded two third of the total population of Yiwu City and all farmers whose land had been requisitioned had endowment insurance. The rate of centralized support of the five-guarantee households (their food, clothing, medical care, housing and burial expenses are provided by the local government) in rural areas and the senior citizens, children and disabled people in urban areas who don’t have legal support providers, lose work abilities or lack economic resources reached 85% and 100% respectively. The system of strike, prevention and control of crime was established with general public’s satisfaction rate of sense of safety amounted to 98%. Yiwu sets a precedent in China for migrants to be elected as representatives of the Municipal People’s Congress and the Town People’s Congress. The experience gained from the work related to the safeguard of employees’ rights was fully praised by General Secretary of the CPC Central Committee Hu Jintao and was popularized to other parts of the country. Yiwu was successively awarded the titles of National Sanitary City, National Model Eco-City, National Advanced Municipality for Science and Technology Advancement, National Advanced Municipality in Cultural Undertakings and National Advanced Municipality in Sports Undertakings, etc.


The next period will be critical for the full implementation of the Concept of Scientific Outlook for the development and construction of a harmonious society. Yiwu people will earnestly carry out the policies of the 17th National Congress of the CPC and the 12th Communist Party Representative Congress, open up the minds and pay emphasis on innovation so as to better driving the construction of an international commercial and trading city.

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