Why is Zhejiang’s economy so strong?

Zhejiang’s economy is indeed strong. Zhejiang is my country’s most economically powerful province. In 2018, Zhejiang’s GDP reached 5,619.7 billion yuan, ranking fourth in the country. In addition, there are nearly 8 million Zhejiang businessmen investing and starting businesses abroad in Zhejiang, and the total wealth they create every year is similar to the annual GDP of Zhejiang Province. In other words, millions of overseas Zhejiang businessmen are equivalent to recreating Zhejiang! This shows how strong Zhejiang’s economic strength is.

Why is Zhejiang’s economy so strong? I think there are mainly the following reasons:

1. Rich historical and cultural heritage. Zhejiang has been a prosperous place in my country since ancient times. "The southeast is beautiful, the three Wu cities are beautiful, and Qiantang has been prosperous since ancient times" refers to the Zhejiang area. Zhejiang was a place where all dynasties attached great importance to development, and it was also the most important source of fiscal revenue at that time.

2. Pay attention to education. Zhejiang has outstanding people and celebrities. It has been a place with developed education in my country since ancient times. The population is of high quality. The number of top scholars from Zhejiang in ancient times was second only to Jiangsu. After the founding of New China, the number of scholars from Zhejiang The number of academicians of the Chinese Academy of Sciences and Academy of Sciences ranks second in the country after Jiangsu, and it can be said that there are a lot of talents.

3. Zhejiang has a superior geographical location and natural environment. Zhejiang is located on the southeast coast of China, bordering Shanghai and Jiangsu. It is the forefront of China's reform and opening up. The Yangtze River Delta composed of northern Zhejiang + Shanghai + southern Jiangsu is one of the most economically developed regions in my country. Moreover, the entire province of Zhejiang basically has a subtropical humid climate, which is suitable for production and development.

Why is Zhejiang’s economy so strong? The author still has the right to speak. I am a financial consultant for several private enterprises in Zhejiang and have been a financial consultant for many years. The main reasons for Zhejiang’s good economy are several aspects:

First, there are many private enterprises in Zhejiang; Most of the enterprises in Zhejiang are private enterprises, with only a small number of state-owned enterprises. The private enterprises in Zhejiang have grown up in competition and are very competitive. Private enterprises in Zhejiang are all started from scratch. They do not ask for a penny from the government. They are a fully market economy. This kind of economy is the most dynamic.

Second, entrepreneurs in Zhejiang are pragmatic and smart in their housework. They do not count big accounts or small accounts. The author has dealt with entrepreneurs from all over the country. When inviting think tank experts like us to serve as corporate consultants, Zhejiang’s There are the most businesses and the most generous, while there are fewer businesses elsewhere. This is the smart thing about Zhejiang bosses. They spend a small amount of money to do big things and pay less tuition. Most of the companies in Zhejiang where the author serves as a consultant have hired me as a consultant since his father, and then his son also asked me to serve as a consultant. The boss will consult the author on all major matters of the company, which avoids a large number of investment mistakes. made many errors. As a think tank, we have seen a large number of corporate cases, and have participated in more than 10,000 times more corporate projects than any other corporate boss. Of course, we see problems more clearly than any entrepreneur. Entrepreneurs in other places always use their own real money to try and make mistakes. A wrong investment can cost hundreds of millions, or even billions. This is where Zhejiang entrepreneurs are smart, using the wisdom of experts from corporate think tanks to help them avoid various risks and find the right business model and real opportunities.

Third, entrepreneurs in Zhejiang are more practical than you think. Bosses in Zhejiang will go to other companies to work for the development of their companies, with the purpose of learning advanced things from other industries.

The fourth is the unity of Zhejiang people. Zhejiang people travel all over the world to do business. They know that one person’s power is limited and like to join groups. Zhejiang businessmen can be said to be ranked first in all parts of China in terms of unity.

Fifth, Zhejiang people are very innovative and receptive to new affairs. Innovation is called innovation when you do things that have not been done by others before. Things that have been done by others are not called innovation. When we talk about new business models, bosses from other places always ask: has anyone done it before, and are there any successful cases? The bosses in Zhejiang will not ask this question. They will always try to figure out how to succeed in this new economic model that no one else has done before. Jack Ma's innovative model is simply impossible to succeed in other places, because no one wants to believe in something that others have not done before, and Zhejiang people just like to do innovative economic models that others have not done before.

Zhejiang entrepreneurs have many advantages, the most important of which is their pioneering spirit. They believe that all new models in the world and all things that have not been done by others can be successful. They are willing to innovate and achieve innovation. The vitality of Zhejiang’s economy.

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Everyone is a businessman and has strong execution ability.

In the early days of Zhejiang, Zhejiang was actually the province with the least key planning among all coastal provinces, and there were relatively few state-owned enterprises, so this gave rise to the rise of a large number of private enterprises.

The main reason for Zhejiang's rapid progress is "people". The early prototypes of Zhejiang businessmen are really just like what was described in the TV series "Wenzhou Family". Many people left their hometowns to start businesses because of poverty. That It was not uncommon for entire villages to have migrant workers. However, Zhejiang people rarely work for others when they go out. They basically choose to start their own businesses. Those without capital have to be their own bosses even if they start by setting up a stall.

I clearly remember that when I was a child, people from Zhejiang could often be seen selling small commodities on the streets around the community. Two of the three shoe repair and shoe shine stalls at the entrance of the community were opened by Zhejiang people. However, with such a low starting point, Zhejiang people began to return to their hometowns in large numbers to open factories within a few years. Those who sold small commodities became those who produced small commodities, and even started to produce and sell their own products. Many of those who repaired and shined shoes became shoe factory owners, and some opened wholesale stores for clothing, shoes and hats.

The Zhejiang people’s saying “I would rather sleep on the floor than be a boss” is not a joke, but the goal of Zhejiang businessmen in the 1980s and 1990s. They are not afraid of hardship or fatigue, and they have a keen sense of smell. In the eyes of Zhejiang businessmen, there are business opportunities everywhere. In industries that many people do not take seriously, and even professions that are looked down upon, Zhejiang people dare to do it and do it well.

Moreover, Zhejiang businessmen have a strong hometown complex and are very united outside the country. Therefore, after making money outside, they began to return to Zhejiang to do business, sell goods to other places to make money, and then build their own hometowns. Therefore, Zhejiang has unprecedentedly prosperous capital and motivation.

Plan comes and meet the opportunity.

When Zhejiang businessmen returned to their hometowns in large numbers, it was the period when the Yangtze River Delta was receiving overall planning, and the integrated development of Jiangsu, Zhejiang and Shanghai entered a new era. At this time, the trend of returning home to upgrade and start a business is like a surging river. The continuous inflow of capital is accelerating, and supplemented by a strong planning level, Zhejiang businessmen have a development platform that is like a fish in water, and Zhejiang's economy has begun to grow at a spurt.

The era of Internet economy is an important turning point for Zhejiang’s economy to reach a new level. Online shopping has made Zhejiang’s one-stop production and marketing flourish. Workshops have transformed into brands, and copycats have gradually disappeared and been replaced by The rise of new companies.

Today, Zhejiang’s economy is becoming more comprehensive, and its strong economy has made up for some of its previous shortcomings, becoming an economically powerful province with comprehensive development and a prosperous people.

Zhejiang Province and Guangdong Province are examples of successful private economies; they can be called the twin constellations of my country's market economy. I am originally from Zhejiang, was born in Shanghai, and now live in Jiangsu, so I can observe the development and growth of Zhejiang's economy from multiple angles.

The strength of Zhejiang’s economy is firstly due to its leading marketization level in the country; secondly, it fully enjoys the dividends of the Internet economy; thirdly, Zhejiang people are innovative and have one of the best entrepreneurial passions in the country. The fourth is Zhejiang people who have traveled all over the world and sent large profits from business back to their hometown.

1. Zhejiang’s market-oriented economy, pioneered by the Wenzhou model, has gradually emerged as early as the early 1970s; it has made rapid progress after the reform and opening up. Zhejiang Province has the lowest proportion of state-owned enterprises among coastal provinces.

As a result, private enterprises have more room for development. Shaoxing Keqiao Textile City and Voluntary Small Commodity City are typical examples. This model of a store in the front and a factory in the back is very popular.

2. There are many Internet companies in Zhejiang Province, or new economic companies founded by Zhejiang businessmen. For example, Ding Lei of NetEase and Alibaba led by Jack Ma are both well-known companies in the country and even the world.

3. Zhejiang people are rich in imagination and dare to start their own businesses. The characteristic of Zhejiang people working together as a team in the same village is the internal and external factor for their success. Among them, the lending of funds among fellow villagers partly provided a source of funds for business and entrepreneurship.

4. Zhejiang merchants are famous all over the world. As early as around 2000, it was said that Zhejiang people were doing business here in all towns and villages across the country, selling everything from handicrafts to small traders and hawkers. After making money, most of these Zhejiang businessmen sent it back to their hometowns; this provided a huge source of funds for the development of Zhejiang's local economy.

Zhejiang Province is a country with “seven mountains, one water and two fields” and poor natural resources. But when they were poor, they wanted to change and eventually became "Oriental Jews".

Hello friends!

The economic strength of Zhejiang Province has historical roots. Historically, Zhejiang people have been very good at doing business. Nowadays, there are even more people doing business in Zhejiang. Therefore, the private economy of Zhejiang Province is Relatively developed, this is the main source of power for Zhejiang Province's strong economy.

1 Zhejiang Province’s GDP

Zhejiang Province’s GDP reached 5,619.7 billion yuan in 2018 and 2,825.6 billion yuan in 2019, an increase of 10.06% over the same period last year, ranking among the top in my country. Among the top five provinces, Zhejiang Province has the fastest GDP growth rate. It can be said that this is really due to the rapid development of the private economy in Zhejiang Province.

If this 10% growth rate is followed, Zhejiang Province’s GDP will reach more than 6.1 trillion yuan in 2019, which can be said to still firmly occupy the fourth place in the country.

Judging from the amount of GDP in Zhejiang Province, it will be difficult for Zhejiang Province to catch up with Shandong Province in the near future, but it will also be difficult for Henan Province below to catch up with Zhejiang Province in the short term.

Therefore, judging from the GDP of Zhejiang Province, the economic situation of Zhejiang Province is quite strong.

2 Zhejiang Province has a strong economy because it has strong private enterprises

Zhejiang Province has a strong economy because it has many relatively strong private enterprises.

It can be said that the private enterprises owned by Zhejiang Province are relatively competitive. Yiwu City's small commodities can be said to be very competitive on a global scale. Alibaba's e-commerce is also ranked first in the country's competitiveness. There is also Geely Automobile, which has had enough of Volvo and still holds equity in Mercedes-Benz. It can be said that Geely Automobile is developing quite well now.

According to data from the Zhejiang Provincial Administration for Market Regulation, as of the end of 2018, Zhejiang had a total of 6.5423 million market entities of all types, including 6.2735 million private economic market entities, accounting for 95.9%. It can be seen that the proportion of private enterprises in Zhejiang Province is relatively high.

According to 2018 data, private enterprises in Zhejiang Province contributed 65% of Zhejiang Province’s GDP, 74% of tax revenue, 77% of exports, and 87% of employment.

Therefore, it can be seen that private enterprises are crucial to Zhejiang Province.

3 Situation of Private Enterprises in Zhejiang Province

Zhejiang Province is a province with a large number of private enterprises. In 2018, the added value of Zhejiang’s private economy reached 3.68 trillion yuan, accounting for approximately 65.5% of the province’s GDP. .

In 2019, the total net assets of the top 100 private enterprises in Zhejiang reached 1.17253 billion yuan, a year-on-year increase of 17.04%; the total net profit reached 147.906 billion yuan, a year-on-year increase of 13.7%.

It can be seen that Geely Holding, the number one private enterprise, achieved sales revenue of 328.5 billion yuan, and Tsingshan Holding Group achieved revenue of 226.5 billion yuan.

In addition to these private enterprises, Alibaba is a foreign-invested enterprise, and it can be said that it has also made a greater contribution to the economic development of Zhejiang Province.

4 Conclusion

Zhejiang Province’s GDP is expected to reach 6.1 trillion yuan in 2019. Zhejiang Province’s GDP can rank among the top four in the country. It can be said that Zhejiang Province’s economy is still relatively strong. . The main reason why Zhejiang Province's economy is developed is that the private economy in Zhejiang Province is relatively developed, and the strong competitiveness of the private economy is an important reason why Zhejiang Province's economy is relatively developed.

The strength of Zhejiang’s economy is obvious to all. First, the economic scale ranks fourth in the country, with a GDP of 5.6 trillion yuan in 2018. Second, the wealth of residents ranks first in mainland China and provinces. Third, Zhejiang businessmen are powerful, and shampoo business giants such as Jack Ma, Li Shufu, and Zong Qinghou have emerged.

Why is Zhejiang’s economy so strong?

First, all people in Zhejiang are doing business. I put this factor first. There is no province in the country where all people are engaged in business. Neither Guangdong nor Fujian are. Only Zhejiang is. In a region, everyone participates in economic development and creates social wealth. It would be strange if the economy cannot develop! According to statistics, there are hundreds of Zhejiang businessmen across the country and around the world. The wealth they create in other places every year is equivalent to the GDP of Zhejiang Province. This explains why Zhejiang’s GDP is not the highest in the country, but its residents are indeed the richest.

Second, Zhejiang has an advantageous geographical location. Why did the eastern provinces develop first during the reform and opening up? The main reason is location. The characteristics of my country's export-oriented economy are very obvious, and external demand plays a great role in driving economic development. Coastal provinces such as Zhejiang, Guangdong, and Jiangsu use their geographical advantages to vigorously attract investment and stimulate local economic development, and then produce a large number of goods exported overseas.

Third, the fighting spirit of Zhejiang people. Zhejiang's economic foundation, especially the economic foundation in southern and western Zhejiang, is not good, and there is no large amount of national investment and national projects. Wenzhou and Yiwu, for example, had backward traditional agricultural economies before their economic rise. Zhejiang has now given birth to business giants like Jack Ma, but 30 years ago, most people in Zhejiang did small businesses selling drinks in the streets.

Fourth, Zhejiang people attach great importance to education. Zhejiang people are not only good at doing business, they are also particularly good at reading. This can be seen from the proportion of the number of Jinshi in Zhejiang's history to that of the whole country. Since the establishment of the scientific examination system in the Sui Dynasty, the number of Jinshi born in Zhejiang Province has ranked second in the country. Since the implementation of the academician system, the number of academicians in Zhejiang has ranked second in the country.

What other factors do you think are there? Additions are welcome.

Zhejiang has a developed economy. I would like to explain it from three aspects: time, location, and people!

Weather: Rizhao in the southeast, enriching Zhejiang

After the reform and opening up, Zhejiang rose rapidly and quickly adapted to the rules of the market economy. The market is the soul and lifeblood of Zhejiang’s economy. It takes the initiative to Through transformation and upgrading, to protect the domestic market and expand the international market, over the past 40 years, Zhejiang people have created a market system based on the consumer goods market, with the professional wholesale market as the backbone, and the production materials and production factor markets as the support.

Before everyone knew what a “market” was, Zhejiang people began to set up street stalls all over the country. At that time, people in Jiujiang and Wenzhou were very poor, and the poor would travel far and wide to seek wealth. Opportunity, 40 years ago, Zuoyi was still a poor county, but people here have had a business habit since ancient times, so the story of "Chicken Feathers for Sugar" started from Zuoyi. In 1982, Zuoyi made a bold policy to allow farmers to People came to do business, and from then on, the humble small commodity market began to be born.

Therefore, the rise of Zhejiang, analyzed in terms of time, is to seize the transformation rhythm of reform and opening up.

It has a favorable geographical location and a vast economic hinterland internally; externally, it has excellent seaports

It is said that Jiangsu and Zhejiang are fertile places. Jiangsu’s advantage lies in inland waterway shipping, especially in southern Jiangsu. , rivers and lakes intersect, and Zhejiang’s biggest advantage is that it has natural deep-water ports, from the Ningbo-Zhoushan port group to many excellent ports in Taizhou and Wenzhou, so Zhejiang has become one of the three provinces with the richest marine resources in my country. one.

Human and Renhe, there are two major business gangs in Zhejiang, the Huzhou Gang and the Ningbo Gang

Among them, the Huzhou Business Gang is located in northern Zhejiang and came into being during the Song Dynasty. The biggest feature is the gathering of talents. Data shows that the Huzhou Merchant Gang in the Ming Dynasty produced 172 Jinshis, accounting for 7%. The Qing Dynasty produced 266 Jinshi, accounting for 9%. There are also 8 top picks, which is not easy.

Do you know who built the world’s first post office? The answer is Ningbo people. During the Chengzu era of the Ming Dynasty, the first Civil Credit Bureau was established during the Yongle period, that is, in 1403 AD. At that time, private letters and banknotes could be sent by post. So the question is, why should people believe you? ?

This is because the people of Ningbo have very good credit, and everyone makes a promise, so the postal business can be carried out at that time. The founding father, Mr. Sun Yat-sen, spoke highly of Ningbo merchants and said that Ningbo merchants are the best in the country. merchant.

To sum up:

Zhejiang occupies three excellent advantages: time, location, and people, and its economy is naturally strong. What do you think of this? Welcome to participate in the topic discussion!

Zhejiang’s economy is indeed strong.

According to information disclosed by the Zhejiang Provincial Bureau of Statistics, Zhejiang’s total regional product (GDP) in 2018 was approximately 5.6 trillion yuan (specifically 5,619.7 billion yuan), a year-on-year actual growth of 7.1%. In terms of total volume, it continues to rank fourth in the country (the top three are Guangdong, Jiangsu, and Shandong).

Based on a permanent population of approximately 57 million, the per capita GDP of Zhejiang Province in 2018 was approximately 98,600 yuan, equivalent to approximately 14,900 US dollars. Apart from Beijing, Shanghai, and Tianjin, Zhejiang ranks second only to Jiangsu in per capita GDP among provinces, ranking fifth in the country and second among provinces.

Why Zhejiang is so strong is mainly because of the people of Zhejiang and the region of Zhejiang.

Let’s talk about the location advantage first. Zhejiang is a coastal city and is close to Shanghai. If you look at the world economic map, you will see that most of the economically developed areas are located along the coast. Because sea transportation is cheap, this is an advantage of coastal areas.

At the same time, Shanghai is the economic center of China, and Zhejiang and Shanghai are adjacent to each other. Being driven by Shanghai's greater influence will also help Zhejiang's economic development. But Zhejiang’s economy is mainly due to the fact that Zhejiang people are so capable.

Zhejiang does not have special economic zones, but Zhejiang people turn every city into their own "special zone". Zhejiang people are bold and courageous, fearless, and have given birth to some unique enterprises, such as Wenzhou's voluntary small commodity city, which is known to everyone around the world; Alibaba in Hangzhou is also known to the world, and so on.

Zhejiang people have made Zhejiang Province, and Zhejiang’s economy is indeed strong.

In 2018, Zhejiang Province had a permanent population of 57 million and a migrant population of nearly 7 million, second only to Guangdong and Shanghai. It is one of the provinces with the highest level of economic development in my country. Its total GDP last year was 5.6 trillion, ranking fourth in the country. There are 11 prefecture-level cities in the province, among which Hangzhou and Ningbo are both trillion-level cities. Zhejiang is also the province with the highest level of wealth in China. The per capita disposable income of urban and rural residents is 55,574 yuan and 27,302 yuan respectively, ranking first among provinces in the country.

1. History and Origin

Jiangsu and Zhejiang have always been a land of rich products and outstanding people. Jiangnan has been the most prosperous area since the Song Dynasty, and Jiangsu and Zhejiang are still the most prosperous. A collection of opera legends and humanistic allusions. According to historical records, before Lin'an was established as the capital of the Southern Song Dynasty, Hangzhou was already the most densely populated place in the south of the Yangtze River. After being established as the capital, Lin'an's commodity economy, culture, education, and scientific innovation were pushed to a new height. The Song Dynasty was also the most economically active dynasty in the history of our country, and Lin'an, as the capital, was even more prosperous.

2. Changes in advanced ideas and vision

In modern times, being located on the coast and adjacent to Shanghai, the ideological and vision changes faster than those in the mainland. When Zhejiang’s small commodity trading market was launched in 1982, mainland people had not even begun to work outside their homes. Thanks to the change in economic concepts, the rise of small commodity trading, from leather in Wenzhou to small commodities in Yiwu, all have an early market.

Most people have acquired business awareness, and many people have made their first pot of gold. Since then, Zhejiang people have started an era of independent entrepreneurship, and Zhejiang merchants and Zhejiang brands have spread all over the country and the world. Including the Yellow Pages when Jack Ma started his business, it was because Alibaba foresaw the prosperity of small commodity trading that he thought of promoting it online, creating a grand undertaking that affected China's economy, technology and people.

3. Geographical location and location advantages

Zhejiang has a superior geographical location and natural environment. It has a natural deep-water port, which is conducive to the import and export trade of goods. The advantage of being adjacent to Shanghai is that it can learn from and absorb the most advanced technology and attract the best talents. As a coastal province, and thanks to favorable policies, the industry and trade of Ningbo, a city under independent planning, and the commerce and services of Hangzhou, a sub-provincial city, form a twin star in the province that develops simultaneously.

4. Talent cultivation

Zhejiang has always been a place where talents emerge in large numbers, and has trained nearly 400 academicians of New China. In recent years, thanks to higher education led by Zhejiang University, the strength of science, education, culture and health has grown by leaps and bounds, and private enterprise academicians including Wang Jian have been trained. The development of education promotes the cultivation of talents, and talents in modern society are fundamental.

5. Industrial Advantages

Zhejiang’s private economy is active, and e-commerce and small commodity trading are developed. Ningbo's industrial manufacturing and import and export trade, Hangzhou's e-commerce and information technology, Wenzhou's clothing and leather, Yiwu's small commodity trading, etc. have all achieved the ultimate industrial chain. Zhejiang is also a major cultural and tourism province in my country, with total tourism revenue alone exceeding 1 trillion yuan last year.

Combining all these factors, Zhejiang’s success is due to both historical factors and modern policies. Of course, it is more due to the genes of Zhejiang people who dare to fight and try.

I think the reason why Zhejiang’s economy is so strong is due to its humanistic heritage of being “hard-working”, “creative thinking”, “forward-looking” and “very talkative”.

When I was doing business a few years ago, I had dinner with one of our local real estate owners. We had no contact with this boss before. This time we had dinner together just because we had the same friend and asked to get together. Of course, not only was I a stranger at this party, but other friends were also strangers to each other.

Among them, one boss asked about this real estate boss. Because he is well-known in the local area, builders and material dealers use the dinner party to deepen their impressions of each other so as to expand resources and business. Then he asked, "General Manager . They came from Zhejiang, and there were five of them in the group. They came here to take over the masonry work, that is, to build houses for people. It was very hard at that time, so I kept on working even if it was cold. Then there were several turning points in the middle, and they caught them with foresight.

The process in the middle was very sad. To reach the level of the boss now, I endured hardships and encountered many detours. The five people in the group are still in the real estate industry.

During the dinner, I just listened and said it. It’s not just that this Zhejiang boss is “hard-working” and “creative in thinking”. This is also the case with several bosses I know.

Once I went to a friend's store and met a businessman from Zhejiang, who was my friend's supplier. To put it simply, the Zhejiang businessman is the manufacturer, and my friend is the merchant who sells his products.

As soon as I entered the door, I happened to meet them discussing a problem. I didn't go in, but waited at the door. When they finished talking, I walked closer. Then I found that businessmen in Zhejiang are really talkative. No matter what you talk about, you can continue the conversation well and have a lot of patience.

Moreover, there is no sense of strangeness when communicating. Business people generally know that if there is no sense of strangeness when communicating with others, no matter what business you do, the probability of closing a deal will be greatly increased. Of course, not only that, they are also very forward-looking when dealing with problems.

Not only these two people, but also many Zhejiang people I met are "hard-working", "creative thinking", "forward-looking" and "talkative". Therefore, I think it is precisely because of this cultural heritage that Zhejiang's economy is so strong.