If China is indeed the factory of the world, then Yiwu, a small city in eastern Zhejiang Province, would be its headquarters. A small commodity trade center established in this rural area in early 1980s as a test field to spearhead local economic development has grown fast to become what is now the world's largest market for small commodities.

Yiwu's fame far outsizes its status of a county-level city. By the early 1990s, Yiwu had its own airport—a luxury that many prefecture-level cities in China still don't enjoy today. Through its exploration of new models of development, the city has blazed a new and unique path toward prosperity. With clusters of factories, warehouses and massive trade centers, it is an ideal place for businesspeople from both traditional sectors and e-commerce. Over 80 percent of Yiwu's local farmers have become traders, doing business with fortune hunters from around the world.

Come and stay 

Mohammad Falah Nasser came to Yiwu from Jordan after completing college in 2002. He had aspired to become a businessman since childhood and Yiwu had been on his list of destinations in which to develop his business. Being awed by dazzling and endless arrays of commodities and the vitality of the county, he decided to stay and start his own business in Yiwu.

It was not a smooth start. Language was a major problem, hindering his ability to gain business information and understand local policies. Supervision and management of the markets was still developing at the time, and Nasser needed to carefully check the quality of all of the goods he purchased. Similarly, the international logistics network from Yiwu was still in the process of development.

Despite an early failure in 2003, Nasser forged ahead to become the owner of a company of hundreds of employees in China and abroad. His business now covers commodities such as electronic tools, hardware, lamps and lanterns.

"Yiwu is a very embracing place," Nasser told Beijing Review. "The local government has made great efforts to improve the business environment and provided many preferential measures for foreign businessmen."

The one-stop administrative service has helped save a great deal of time and energy for foreigners in visa application, company registration and tax reimbursement. The government meets with representatives of foreign chambers of commerce on a regular basis to learn about any problems they encounter. 

The efficiency of the local government is also a major reason for Ouyang Liang to move his e-commerce business from Beijing to Yiwu in 2014. "The local government is very experienced in dealing with business issues," Ouyang said, "which is a big bonus for startups."

Another factor that finally tied him to the city was the jaw-droppingly low price of delivery. "In 2014, sending a delivery package nationwide from Beijing would cost around 5 yuan ($0.78), but in Yiwu, it cost less than 1.5 yuan ($0.23)," Ouyang said.

Ouyang's company sends out over 10,000 parcels each day. "That means we can save over 10 million yuan ($1.57 million) on delivery expresses alone over the course of a year," he said. "That's a big sum."

The rent of warehouses is only a quarter of that in Beijing and, as most of the locals have been doing e-commerce for a while, it is easier to find experienced employees.

Children's education, a big issue in Beijing due to the capital's strict household registration policy, was solved easily here, too, as children do not require household registration status to get into the local public schools.

Now, catering to the rising demand for live-stream marketing, Ouyang's company also undertakes live-streaming on several platforms. "Yiwu always takes the lead in new business waves," he said. There is an area in Yiwu that is called the live-streaming village that is gathering many live-streamers. Now, over 50 percent of the sales volume in Ouyang's company comes from live-stream marketing.

A local foreigner 

Ammar Albaadani, a 43-year-old Yemeni man who has been living in Yiwu for eight years, has become a local star. He is the only foreign doctor in a local public hospital in Yiwu.

With perfect Chinese and active participation in local activities, he is easy to talk to. During the pandemic, he has also given many interviews to foreign media, including Qatar-based Al Jazeera, introducing China's actions in the fight against COVID-19 and the overall business situation in Yiwu during the pandemic.

His smartphone is switched on around the clock in case his patients need him at any time. However, he also receives many other inquiries such as where to buy a specific commodity or the opening hours of a specific bank branch. "They regard me as a know-all in Yiwu," he said, adding that he also receives offers from other hospitals in big cities like Beijing and Shanghai, but has chosen to stay as Yiwu needs him more. 

His career choice actually arose from a suggestion he raised during a meeting with the local government in 2015 when he was a businessman in Yiwu. "I said many foreigners living in Yiwu face language difficulties when seeing doctors and we needed to have a foreign doctor," he said.

Albaadani ended up becoming this doctor as he is perfectly qualified with medical degrees from Tianjin Medical University and Zhejiang University and speaks Chinese, Arabic and English. "I have submitted quite a few suggestions to the local government and many of the suggestions have been very well received and actions were taken," he said.

In 2016, the Foreign Citizen Card was issued to expatriates in Yiwu as an alternative to passports. Cardholders enjoy the same social security treatment as Yiwu citizens in such areas as basic old age care, medical care and children's education. Unlike other cities in China, the children of foreign businesspeople are allowed to attend Yiwu's public schools alongside locals.

"The local government really cares about our needs," Nasser said, echoing Albaadani's comments. In early 2020, as the factory he'd partnered with was unable to resume production due to the pandemic, the local government helped the factory solve the problems preventing it from resuming production and ensured Nasser would be able to fill his orders on time. 

Yiwu has now become one of the richest county-level cities in China. In July, Yiwu was listed as one of China's demonstration zones for achieving common prosperity.

In Albaadani's opinion, common prosperity is not only about a city, a province or a country. When Yiwu was named one of the starting points of the Belt and Road Initiative, common prosperity came to involve every country participating in the initiative. "Quite a few underdeveloped countries have benefited from the initiative," he said.

(Print Edition Title: Small City, Big Ambition) 

Copyedited by G.P. Wilson 

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