From obscurity to global prominence - Yiwu's emergence as an international trade hub

As just a county level city in China, Yiwu's rise to global renown is a compelling story. Despite its antiquity, its rise dates largely from market liberalization in 1978. Leveraging its traditional role as a petty market center, it relied on an early start and subsequent agglomeration economies to grow these markets. The demand for goods in these markets begot manufacturing of these goods, creating backward linkages. The growth of these markets led to its unique version of internationalization - “shopping tourism” and as a venue for conventions. This pattern of growth, dubbed the “Yiwu model” is distinctive in that it relied on home-grown small trading enterprises, as opposed to the better-known model of large firms - foreign investment nexus found in export zones. Also distinctive is the strong role played by the Yiwu government working hand-in-glove with private entrepreneurs to seize opportunities and overcome challenges. This partnership will need to overcome challenges that come with this model of growth.