City Introduction of Zhejiang, China: Wenzhou

Major Economic indicators (2007)

Source: Wenzhou Economic and Social Development Report 2007

Introduction

Wenzhou is located on the southeastern coast of Zhejiang Province, with the East China Sea and the O'jiang River along its borders. It has a 355 km coastline from north to south. Wenzhou (which means ‘mild and pleasant land’) derives its name from its climate, as it is neither extremely hot in summer nor extremely cold in the winter.

Due to its highly-developed road, waterway and air transportation system, it is easily accessible. Numerous highways from the city lead to Beijing, Shanghai, Guangzhou, etc. The 250-kilometer Jinhua-Wenzhou railway is linked to the Zhejiang-Jiangxi railway, connecting the city with other major cities in South China. Wenzhou Yongqiang Airport has 47 routes to domestic cities and 2 international routes to Hong Kong and Macau. Wenzhou’s port, one of the 25 main coastal ports in China, also plays an important role in the city's integrated transportation system.

Economic Features

Wenzhou has witnessed a two-digit economic growth for years. In 2007, the city's GDP edged up 14.2% year-on-year to RMB 215.7 billion, being third largest economy after Hangzhou and Ningbo in Zhejiang Province and the largest one in the south of Zhejiang.

As the birthplace of China’s private economy, Wenzhou features a bustling private economic sector and a highly market-oriented economy. There were 125,479 private enterprises in Ningbo by the end of 2007, generating RMB 236.4 billion of gross industrial output and contributing over 47.8% of the city’s total industrial output. The so-called “Wenzhou Spirit”, which embodies openness, hard work, community cooperation and entrepreneurships, largely drives the robust private economy. 

All of the city's 9 pillar industries, including electrical manufacturing, shoemaking, equipment manufacturing, electrical production and supply, plastic manufacturing, textiles, transportation equipment manufacturing and chemical industries, have generated RMB 240 billion gross industrial output value, accounting for 72.9% of the city's total (from enterprises with designated size and above). Gross industrial output from the light industry amounted to RMB 122 billion, accounting for 36.5% of the city’s total, while that from the heavy industry reached RMB 212.2 billion, making up 63.5% of the city’s total (these figures refer to enterprises with designated size and above).

The city's total foreign trade in 2007 totaled US$12.2 billion, with a growth of 23.8% over the previous year. Wenzhou is a major export base of the province. Export value soared 25.6% year-on-year to US$10 billion, accounting for 7.8% of Zhejiang’s total. The light industry plays a vital role in the city’s export. Shoes (US$2.4 billion), garments (US$1.2 billion), synthesized leather (US$231 million) and glasses (US$515 million) are Wenzhou's major export products. Its major foreign trade partners are Europe (US$4.3 billion), Asia (US$2.9 billion), North America (US$1.1 billion), Africa (US$952 million) and Latin America (US$788 million).

In 2007, it approved 141 foreign-invested projects. The utilized FDI reached US$618 million in 2007, representing an increase of 33.5% over the previous year. Coca Cola, GE, Cendant, and other Fortune 500 enterprises have established themselves in Wenzhou.