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Wenzhou in Zhejiang Province on Chinas southeast coast isnt as famous as other urban giants people usually associate with the countrys manufacturing power, but over the three decades since reform and opening-up began, this medium-sized city has positioned itself as the source of an impressively high percentage of many common goods. Wenzhou currently produces 10 percent of the national inventory of garments, 20 percent of its shoes, 60 percent of its razors, 65 percent of its locks, 80 percent of its eyeglasses, and 90 percent of its metal-shelled lighters and felt-tip pencils.

Its path to economic growth has been branded the “Wenzhou mode” and its considered the epitome of “made in China.” Noted economist Wu Jinglian points out that the “Wenzhou mode” is characterized by small and medium-sized private enterprises. Of the citys 8 million population, one-fourth are merchants. Also emblematic of the citys can-do attitude, nearly 500,000 Wenzhou natives have moved abroad to run successful businesses in various parts of the world. In 2008, Wenzhous private economy made up a stunning 80.9 percent of the citys GDP.

Wenzhous track record in entrepreneurial feats began with its formation of Chinas first group of private entrepreneurs following the reforms of the 1980s. Subsequently, it blazed a trail as the first mainland city to set a legal precedent regarding the inheritance of family wealth.

It is precisely the private nature of Wenzhous economy and tax base that has made it vulnerable to the recent dramatic financial downturn. With 20 percent of businesses forced into closedown, the global crisis would have to be described as an onslaught on Wenzhous 390,000 small and medium-sized private enterprises. Commentators are optimistic however, pointing out that Wenzhou merchants have been able to discover business opportunities anywhere and anytime, even during periods of economic distress.