I. The general situation of Yiwu

1. History: Yiwu located at the middle part of Zhejiang Province with a long history; in the 25th year of Qin Shi Huang (222 B.C.), Wushang County, subordinated to Huiqi Prefecture, was established. As a result, Yiwu was one of most ancient counties (cities) in Zhejiang Province. In 1988, Yiwu County was revoked, and Yiwu City (the county-level city) was established. With the approval of the State Council, Yiwu became the international trade comprehensive reform pilot in 2011.

2. Districts population: With 1,105 square meters of administrative region area, Yiwu City governed 7 street offices, 6 organic towns as well as their 716 subordinated administrative villages, 61 neighborhood committees (committees developing from villages) and 36 urban communities (neighborhood committees).By the end of 2010, the population with local census registers were 740 thousand with 1.43 million foreign constructers long living in Yiwu and more than 200 thousand floating people every day.

3. The total output value of Yiwu district was RMB 61.4 billion with an increase of 11.5% year on year and RMB 83,539 Yuan per capita.

4. General budget revenue in finance was RMB 7.7 billion, among which local budgeted revenue was RMB 4.28 billion with the respective increases of 8.7% and 10.7% year on year.

5. Rational industrial structure: In 2010, the proportion of three main industries in Yiwu was 2.8∶43.2∶54.0, among which the tertiary industry achieves its added value RMB 33.14 billion with an increase of 12.7%. During the 11th Five-Year Plan, its GDP proportion of service industry had cumulatively increased by 3.1%.

6. Life of the residents: With the budget financial expenses tilting to the livelihood of the people, the total expenditure on social security, medical treatment and public health, environment protection, rural and urban community affairs was RMB 980 million with an increase of 24.8 %. The total volume of retail sales of consumption goods had reached RMB 29.04 billion with an increase of 18.9% year on year; and the savings deposit of the urban and rural residents was RMB 83.6 billion. The net per capital income of rural residents was RMB 14775 with an increase of 14.5%; and the urban per capita disposable income was RMB 35220 with an increase of 14.2%. The Engel coefficient of the urban families was 31.9%; and that of the rural families was 34.1%. The number of car ownership in each 100 households was 43.3 cars.

II. Constructing the international small wares trade Centre

1. General situation of market: the gross operation area of Yiwu market was more than 4 million square meters with 62 thousand business booths, 16 broad headings, 4202 types and 1.7 million single goods. If one stopped at each booth for 3 minutes, one needed more than one year before visiting all the booths in light of 8 hours a day. There were more than 200 thousand employed persons with 210 thousand passenger flow volume each day. More than 100 thousand manufacturing enterprises and 6000 famous brands coming from all over the world exhibited their commodities throughout the year. The superior commodities such as accessories, toys, art ware, articles of daily use, socks and zipper covered more than 30% of China market share. Yiwu worked as the bridge for China wares moving towards the world and the world wares moving towards China. And Yiwu was honored as the largest small wares wholesale market by the authority organizations such as the United Nation and the World Bank.

2. International trade mart: Yiwu international trade mart market was one of the most advanced professional markets with more than 3 million square meters of total covered area. The first-stage, second-stage and third-stage projects of the international trade mart make up the global largest commodity wholesale market in light of the monomer area, which equal to the area of the third terminal of capital airport. The market of the second phrase in the third-stage project of international trade mart will come into service in April, 2011, with overall floorage of 640 thousand square meters.

3. The import commodities hall: The fifty-thousand-meter import commodity hall was newly established with nearly 30 thousand overseas commodities from 55 countries. There were about 10% of wares in the market coming from overseas. Yiwu market planned to increase 100 thousand square meters using for the follow-up development of the import commodity hall in the newly built Fifth District markets. Under the active encouragement of the superior departments such as the Ministry of Commerce of the People’s Republic of China and the Ministry of Foreign Affairs, the 5000-square-meter project of “African Products Exhibition Center” settled in Yiwu. And Yiwu market was changing from “buying Chinese goods and selling Chinese goods” to “buying global goods and selling global goods”.

4. The volume of commercial trade: In 2010, the total volume of Yiwu peddlers’ market was RMB 62.116 billion, with an increase of 11.7% year on year. And the total volume of Yiwu market had ranked the first among all big specialized markets around China for successive 20 years, among which the trade volume of the China commodities mart market was RMB 45.606 billion with an increase of 10.8% year on year. The trade volume of the China commodity market broke through the limit of RMB 45 billion for the first time and set the best result in the increase of trade volume in recent 10 years at the same time.

5. The rights of speaking among the world:Starting from the October, 2006, “Yiwu·China Small Commodities Index” established by the Ministry of Commerce had been issued periodically; the Yiwu Index consisted of three parts: price index, prosperity index and monitoring indicators index, which further includes 23 subentry indexes. It had become the “wind vane” and “weatherglass” for the global small commodities production and trade price changing. And it successfully issued the first “market credit index”; it was firstly granted the title of “national market credit classification regulatory demonstration market” by the State Administration for Industry& Commerce of the People’s Republic of China. Small Commodities Classification and code, the first industrial standard in our country was formulated and implemented, and from then on there was “Yiwu classification” for the global small commodities. Yiwu market has realized the significant transformation from the simple export of commodity to the comprehensive export of commodity, information and rules, which opened a wider space for China consumer products moving towards the international mainstream market.

6. Market driving ability:

The market commodities have exported to 215 countries and regions all around the world with more than 65% of export-oriented degree. The market attracted more than 60 thousand operational bodies to access the market with more than 200 thousand enterprises directly supplying materials for it. As a result, it became the important channel for domestic labor concentrated industries to blend into the global production network. The huge production-supply-marketing system behind the Yiwu market provided more than 3 million posts for 25 provinces (municipalities) to accept customer’s materials for processing and paid more than 5 billion for processing services each year, which opened up a new channel to increase the income of rural labor force “leaving their farmland but not their hometown”

III. Forging the advanced manufacturing base

1. The general situation of industries and superior industries: Yiwu had more than 26 thousand industrial enterprises of proper scales, of which 1202 enterprises were above medium-size. More than 20 superior industries such as knitting and stockings business, accessories, handiwork, wool spinning and cosmetics had been formed; and a group of national even global “championships” had emerged; the products such as accessories and zippers held more than 30% of the national shares; the output of seamless underwear held 20% of the global shares and 80% of national shares; and the developing situation of “small commodities, big industry, small enterprise and big cluster” were formed.

2. Gross output value

In 2010, Yiwu realized the gross output value of RMB 117.49 billion, among which the production value of the enterprises above designated size was RMB 59.25 billion, with the respective increases of 20.9% and 24.9%. The enterprises above designated size had realized the sales value of RMB 57.45 billion with the sales-output ratio of 97.0%. The industry consumption was 3.72 billion kilowatt-hours with an increase of 14.9% year on year. 

3. Industry base

Yiwu was honored with 12 national grade industry base titles such as the pen manufacturing, cosmetics, seamless knitting, craft gifts, among which it was honored with the titles of “The Industry and Trade Capital of China Plastics Cases (International)” and “China Gloves City”; the zipper industry was honored with the title of province-level regional brand base, and the accessories industry was listed as the 21 provincial massive economic key industrial clustered upgrading project.

4. Energy saving and emission reduction

The first four years of the “11th Five-Year Plan”, the droop rates of per GDP energy consumption in our city were 5.29%, 4.24% , 5.6% and 4.5% respectively; and the rate of the completed projects was 18.21%, which had outnumbered the average accumulative droop levels of the provincial rate (17.3%) and Jinhua City rate (17.42%). In 2010, the energy consumption reducing rate of industrial added value was about 6%, and the per GDP power consumption reducing rate was -2.80%. The Yiwu 10 thousand GDP energy consumptions were 0.5934 ton standard coal with the decreasing rate of 2.36% year on year. The energy conservation task of decreasing 20% requested by the “11th Five-Year Plan” was basically realized through an average annual increase of 7.6% energy consumption supporting an average annual 11.5% economic growth.

5. Intellectual property: The total number of intellectual property in Yiwu City was 12004 with 32619 registered trademarks, 78 China well-known trademarks, 7 China famous-brand products and 45 provincial famous-brand products. Yiwu City had ranked second in the national county-level city trademark comprehensive strength for successively three years. And the Yiwu court had become the only court at the basic level that carry out the patentstrial pilot work.

6. Upgrading and innovation

Zhejiang University- Yiwu Pioneering Incubation Center had imported 14 enterprises; and 17 projects were in contemplation, among which one project was listed as the national innovation fund project. Yiwu innovation campus had imported 55 innovation enterprises, colleges and universities research and development organizations such as the modern industrial design research institution of Zhejiang University, Asia-Pacific International Digital Design Limited Company and Hangzhou Bole Design. The Policies and Suggestions on Speeding up the Headquarter Economy Development had been enacted so as to structure the headquarter economy development pattern on the carriers of the financial business district and the central part of the economic development zone. The seamless contexture industrial association had been upgraded as the second province-level industry association. The China Tourist Commodity R&.D Center founded in last June had successfully developed the tourist commodity into 10 broad heading with more than 600 products. Yiwu had 134 high and new tech enterprises, among which includes 6 enterprises belonging to the national key torch plan and 21 enterprises belonging to the state key supporting enterprises. And there were 135 research and development centers in Yiwu, among which 14 of them were above province-level. In the China City Innovation Report of 2008, the innovation ability of Yiwu ranked the 7th in the counties of China. 

IV. The rapid expansion of the modern service industry

1. Forging the international small commodities convention center: With 128 various exhibition activities being held in 2010, Yiwu had been successively honored various honorable reputations such as “the most glamorous exhibition city in China”,“membership of the Union of International Fairs”, “membership of International Association for Exhibition Management”, “China Top Ten Exhibition Cities”, “China Ten Famous Trademark Exhibition Cities” and “the Most Concerned Ten Exhibition Cities”. At present, there were four national grade exhibitions, which were respectively the China Yiwu International Commodities Fair (abbr. Yibohui), China Yiwu Cultural Product Fair (abbr. Wenbohui), China Yiwu (International) Forest Product Fair (abbr. Senbohui) and China International Tourist Commodity Fair (abbr. Tourist Commodity Fair); and China Yiwu International Commodities Fair had become the third largest economy and trade fair following the Canton Fair and the East China Fair. The international exhibition center which has been used now is the largest exhibition center in Zhejiang Province with RMB 1.8 billion total investment and covering an area of 219 mu,a unit of area (=0.0667 hectares).

The 16th China Yiwu International Commodities Fair and the 3rd Africa Commodity Fair arranged 5000 international standard booths with an exhibition area of 120 thousand square meters and 2617 enterprises coming from 44 countries, regions and 29 provinces (municipalities and cities) of China; there were 134393 trade visitors with an increase of 9.0% year on year; the volume of business in the exhibition reached to RMB 12.767 billion with an increase of 10.6% year on year. The Cultural Product Fair of 2010 was successfully upgraded as the national grade fair sponsored by Ministry of Culture with 2371 international standard booths and an increase of 58.07% year on year; and the volume of business of RMB 2.807 billion had been realized with an increase of 51.8% year on year; there were 83915 people taking part in the exhibition with an increase of 23.03% year on year. With 2160 international standard booths, the 3rd Forest Product Fair covered an area of 50 thousand square meters; with total volume of business of RMB 2.821 billion, the fair had become forest exhibition offer the most business opportunities in China and the largest exhibition scale in Asia forest professional fairs. The Tourist Product Fair had 2256 international standard booths, more than 100 thousand visitors, among which 7156 overseas travelling traders with an increase of 38.69% year on year; the volume of business of RMB 2.769 billion had been realized with an increase of 17.28% year on year.

2. Establishing the regional logistics highland: As one of the key constructions of three “customs clearance” of Zhejiang Province and one of the four modern logistics hubs, Yiwu needed to be fostered greatly; and its logistics park was listed as the key provincial logistics base. General Administration of Customs of People’s Republic of China specially arranged policies such as the “tourist shopping commodity”, simplification and classification for Yiwu to implement the customs clearance mode of “customs clearance at different places and port discharging”, which realized the one-stop customs clearance with Ningbo Port and Shanghai Port. At present, Yiwu had 2,311 different logistics enterprises, among which 1,126 domestic logistics enterprises, 1,051 international freight storage enterprises and 134 express delivery logistics enterprises with an operation area of 1,051,800 square meters, 28.85425 million tons yearly total shipment and 157,273 logistics employees. In Yiwu, there were more than 30 thousand goods vehicles, and 5,268 of them were container trucks. The Yiwu freight transport through highway could directly reach to more than 320 large and medium-sized domestic cities, which covered all the important cities in China; there is at least one truck on each special freight-line every day, and the freight transport can realize the evening departure and morning arriving within the scope of 800 km. The railway interim check station connected more than 20 big railway stations. There are more than 100 Aviation freight forwarders located at Yiwu with over 30 thousand tons international aviation freight forwarders each year; the “ground-to-air” seamless connected “truck flight freight business” from Yiwu to Shanghai Pudong International Airport was pushed out in March, 2010. The volume of business express delivery increased rapidly with 150 thousand express delivery mails every day, among which 21 thousand of them were export mails. The global famous shipping corporation such as China Shipping, CMA CGM, ZIM and WHL had established administrative bodies in Yiwu.

3. Cultivating the regional financial highland: By the end of 2010, Yiwu financial institutions’ domestic and foreign currency accounts outstanding of deposits had reached to RMB 150.05 billion with an newly increase of RMB 24.24 billion compared with the beginning of the year. The outstanding loan was RMB 106.29 billion with an increase of RMB 19.57 billion compared with the beginning of the year. Yiwu had 18 banking financial institutions, 2 small-loan companies, 9 security company sales departments, 5 HS Securities Futures and 36 safety and arming devices. Yiwu was listed as the second group of RMB cross broader trade settlement pilot city, and it also founded the first domestic and foreign currency exchange division in Zhejiang Province. The four nationalized banks of Yiwu were all ratified to be upgraded as subsidiary banks, which further boosted the developmental capacity of local economy. In the process of constructing the financial business district, the future world trade center with 0.75 square kilometers in total planning area, 2.90 million square meters in overall floorage and 260 meters in height will become the new landmark in the middle-part of Zhejiang Province when it is completed.

4. The flourishing tourist industry: In 2010, Yiwu had received 8108.7 thousand visitors and 450.1 thousand of them being foreign visitors with respective increases of 18.39% and 20.07%. The shopping tourism center of the Yiwu International Trade Mart was the first (AAAA) tourist shopping attraction in China; its shopping tourism receptions had received 6490 tour groups with 223,941 visitors throughout the year. It has 13 star level hotels, one five star hotel, 7 four star hotels, 17 travel agencies, 4 tourism branches and 6 travel sites now.

VI. Notable improvement in internationalization

1. The integration of Yiwu’s economy into the global market:    In 2010, 576 thousand TEU export containers passed the supervision of YiWu Customs District, an increase of 12.7% year on year. The freight volume in Yiwu International Logistics Center was 427 thousand TEU, an increase of 29.9% year on year. The total value of self-supporting import and export business reached 3.12 billion USD, an increase of 32.7% year on year. Among them, 2.86 billion USD were of export business, an increase of 34.1% year on year and above the average level in China; 260 million USD were of import business, an increase of 19.2% year on year. There were 54 countries (regions) with whom the export value exceeded tens of millions of dollars.

2. Foreign businessmen and institutions stationed in Yiwu:

The overseas customers entering Yiwu exceeded 420 thousands in 2010, an increase of 32% year on year. 13 thousand overseas businessmen have lived in Yiwu for more than half a year. By the end of 2010, 3,008 overseas enterprises had set up representative offices in Yiwu, which was more than a half of the total overseas enterprises in Zhejiang province, ranking first in the country.