The rapid growth of the Wenzhou economy is very unusual in that it has been based on privatization without tumult within transitional China, even during the planned economy regime before China’s industrial economic reforms started in the early 1980s. Since then, the “Wenzhou Model” has become well-known in China. Wenzhou is a municipality in southeast Zhejiang province on the east coast of China, with a total population of seven million. During the communist-planned economic regime, there had been little building of state-owned enterprises (SOEs) or township-village enterprises (TVEs) in the area. Some scholars claim that local poverty had a part in this, since TVEs and sometimes SOEs were often financed out of local resources. Also Wenzhou is just across the straits from Taiwan and was always a stronghold of the nationalists, and strongly pro-capitalist.
Bibliographical notePublisher Copyright:
© Keijiro Otsuka and Kaliappa Kalirajan 2010 and Contributors 2010.