The Growth of China＇s Private Sector： A Case Study of Zhejiang Province

I. Introduction Today, the private sector is the most important component of the Chinese economy. It grows especially fast in the eastern coastal areas, such as Jiangsu, Zhejiang, Guangdong, Shandong provinces and Shanghai Municipality. The development of the private sector started firstly in southern Jiangsu province with township and village enterprises (TVEs) in110 Zhikai Wang / 109 – 120, Vol. 14, No. 3, 2006 ?2006 The Author Journal compilation ?2006 Institute of World Economics…

The Growth of China's Private Sector: A Case Study of Zhejiang Province

Private capital is one of the main driving forces in China's initiatives towards stimulating the market economy. The development of private economy in China has always been based on integrating industrial and corporate structures with product composition and market structures. This paper explores the development of the private economy and how it integrates different industries with specific markets by analyzing the leading private sector in Zhejiang province. It also examines the trends of industrial cluster, the formation of the agglomerative economy and their effects on private economy development. Finally, the paper explains why Zhejiang people have profited much from the Wenzhou model, and discusses some existing problems and future possibilities for development of the Wenzhou model. (Edited by Zhinan Zhang)