The recent U.S. elections sparked a humorous theory: Yiwu’s sales of candidate support materials could predict the presidency. While unscientific, this notion underscores Yiwu’s global reputation as a hub for small commodities.
Yiwu’s evolution from a resource-poor county to an international trade powerhouse rests on two key factors. First, the entrepreneurial spirit and trade acumen of its people aligned naturally with modernization and economic globalization. Second, the proactive governance of a competent government provided the foundation for sustained growth.
The Spirit Behind Chicken Feathers for Sugar
Yiwu, a city in Jinhua, Zhejiang Province, is surrounded by mountains and lacks access to the sea. Its small, acidic, and infertile arable land historically created significant challenges. To enhance soil fertility, Yiwu residents developed a chicken feather fertilizer technique, using chicken feathers mixed with ash to nourish crops. As chicken feathers became scarce, locals began trading sugarcane—well-suited to the acidic soil—for feathers, initiating the practice known as “Chicken Feathers for Sugar.”
Over time, this bartering expanded beyond sugar and feathers to include goods like handicrafts, tools, and scrap materials. Yiwu traders would travel extensively, selling and exchanging products while maintaining ties to their hometown. This trade fostered a specialized division of labor, with roles such as sugar producers, traders, and logistics providers. For example, sugar factories manufactured and lent goods, while others managed purchasing, logistics, or consignment services. On the road, traders were organized into hierarchical roles based on experience and responsibilities.
This structured system turned a simple barter practice into a sustainable, professional, and highly organized trade network. The activity became deeply embedded in Yiwu’s culture, fostering resilience, adaptability, and entrepreneurship among its people. Even under socialist reforms post-1949, which curtailed private trade, the Chicken Feathers for Sugar ethos endured as a defining trait of Yiwu’s commercial spirit.
Government Action and the Revival of Commerce
Yiwu’s economic transformation reflects the interplay between entrepreneurial traditions and government support. Before the reforms of the late 20th century, informal trade practices such as chicken feathers for sugar symbolized the survival instincts of Yiwu’s residents in an environment marked by infertile soil and limited arable land. These marginal economic activities laid the groundwork for what would later become a thriving trade hub. The local trade ethos persisted despite suppression during China’s socialist reforms, with informal bazaars demonstrating resilience and adaptability.
The turning point came with the Third Plenary Session of the Eleventh Central Committee in 1978, which legitimized small-scale commerce. Yiwu’s first regulated small commodity market emerged in 1982, and subsequent expansions culminated in the establishment of the Yiwu International Trade City, the world’s largest wholesale market. This marked a shift from local barter systems to global trade networks, underpinned by standardization and a focus on higher-quality goods. The transformation from informal roadside markets to a world supermarket was driven by strategic government interventions and the entrepreneurial spirit of Yiwu’s people.
The Yiwu government played a pivotal role in this development by balancing market spontaneity with regulation. Its support extended to creating enterprise service stations and assisting businesses in logistical and regulatory matters, ensuring a business-friendly environment. Strategic initiatives like the Yiwu Fair, designed to complement the Canton Fair, boosted market visibility and international engagement. Efforts such as launching the Chinagoods app and establishing the China-Europe liner further integrated Yiwu into global trade networks, reducing barriers for businesses and expanding markets. By prioritizing the interests of non-local traders, including foreign nationals, the government cultivated a sense of belonging among the diverse business community, attracting over 15,000 foreign merchants and numerous foreign enterprises.
Yiwu’s evolution from a small trading hub to an international trade powerhouse exemplifies the fusion of grassroots innovation and strategic governance. The city’s pragmatic approach to addressing market needs, fostering inclusivity, and supporting enterprises has created an environment where traders can focus exclusively on business without being burdened by external concerns. This dynamic has sustained Yiwu’s growth for over four decades, making it a model for integrating local initiatives with global ambitions.
Yiwu’s Evolution Through Its Social Heritage
Yiwu’s transformation from a struggling rural county to the world capital of small commodities reflects the interplay of cultural heritage, entrepreneurial spirit, and strategic governance. Rooted in its challenging geography and limited resources. This spirit of ingenuity evolved into a collective social characteristic, embedding trade and entrepreneurship into the local identity. The Yiwu Spirit, characterized by hard work, integrity, and tolerance—became a cultural cornerstone that supported the city’s rapid economic ascent.
The local government played an essential role in fostering this development. Recognizing the entrepreneurial trade genes of Yiwu’s people, it positioned the service economy as a central strategy during the reform and opening-up period. Government initiatives such as infrastructure development, tax incentives, and standardized market management amplified Yiwu’s potential, transforming the city into a trade hub. By aligning cultural heritage with modern economic strategies, the government enabled the city to thrive in both local and global markets.
The dynamic relationship between the government, society, and market players underpins Yiwu’s success. The government provided stability and scalability, ensuring that market growth remained structured and sustainable. This foundational stability allowed Yiwu to expand beyond local trade into a global commerce powerhouse. Its proactive governance has been widely acknowledged by market participants, fostering a sense of mutual trust and cooperation that ensures long-term development.
Yiwu’s success is not merely a local phenomenon but a model of global trade rooted in local cultural heritage. The city’s development exemplifies how the fusion of social heritage, entrepreneurial innovation, and active governance can create a resilient and scalable economic ecosystem capable of thriving in an increasingly interconnected world.
Source: cphoto, people, xinhua
