Industry News

Now to east China. The city of Wenzhou has announced its gross domestic product has surpassed one trillion yuan – a key milestone in its economic development. What sets Wenzhou apart is that more than 80 percent of its economy is driven by the private sector. CGTN's Wu Bin reports. 

This is Wenzhou in eastern China, known as the country's leather capital – and for its famously tricky local dialect.

WU BIN, Wenzhou, Zhejiang Province "Now, it has officially joined China's GDP trillion-yuan club."

The GDP trillion-yuan club refers to cities whose annual gross domestic product exceeds one trillion yuan – roughly 143 billion US dollars. It is not a formal organization or membership, but rather a benchmark reflecting a city's economic strength and competitiveness. China now has nearly 30 cities above this threshold. But Wenzhou stands out – renowned for its entrepreneurs and business networks around the world.

Inside this spectacle frame company, staff are busy selecting samples. They are preparing to head to Milan in a week's time for the world's largest eyewear exhibition. Nearly one thousand businesspeople from Wenzhou are expected to attend.

HUANG YIMING, General Manager, Marketing, Wenzhou Dongtian Trading "We started designing these samples half a year ago for Milan, and we will bring almost 2,000 newly-designed products."

Wenzhou is one of the world's major eyewear producers. More than 80 percent of its products are sold overseas. Many manufacturers here are "hidden champions," supplying components for well-known global brands. Take this company, which specializes in spectacle cases. If you wear glasses, there's a good chance the case came from here – they work with over 95 percent of the world's eyewear brands.

"How many do we produce in a year?"

"150 million cases."

"150 million?"

Such scale reflects a deeply globalized mindset. Since China's reform and opening-up in the 1980s, Wenzhou entrepreneurs have been among the first to venture abroad. They are widely known for their risk-taking spirit and strong sense of entrepreneurship – often the first to try something new.

LIN JIAQIAN, President, Wenzhou Optical Association "Entrepreneurs from Wenzhou dare to venture and fight. This is our fighting spirit."

That legacy has made the private sector the backbone of Wenzhou's economy, contributing around 83 percent of the city's GDP in 2024. Today, an estimated 800,000 businesspeople from Wenzhou are spread across the globe. This model is often described as the "sweet potato economy." Like sweet potatoes, the vines stretch outward in search of resources, while nutrients are eventually sent back to the root – the hometown.

LIN JIAQIAN, President, Wenzhou Optical Association "We need to go to other places, even abroad for more resources. For us, the purpose of going out is to feed back the local economy."

Entrepreneurs here are often among the first to spot emerging trends. Combined with China's strong manufacturing capabilities, new products can be rapidly designed, produced and delivered to customers worldwide. This "sweet potato economy" is also shaping another pillar of Wenzhou's growth – the electrical equipment sector.

ZHENG JINGJIE, President, People Electric Appliance Group "What Wenzhou entrepreneurs worldwide bring are heights and horizons. They have strong emotional bonds to their hometown, and can quickly respond and catch the trend, and further empower local manufacturing."

Zheng heads one of Wenzhou's major electrical equipment companies. Like many private enterprises in the city, the sector began as small family-run businesses decades ago. Today, it has grown into one of China's leading advanced manufacturing clusters, with output exceeding 300 billion yuan — about 43 billion US dollars. As many private firms are now being passed on to younger generations, they face a faster-changing and more competitive global environment.

ZHENG JINGJIE, President, People Electric Appliance Group "I think as entrepreneurs, what we need the most is the spirit of innovation, because innovation never changes no matter what era we're in. For us, we'll continue to work in the electrical sector and push for more innovations."

WU BIN, Wenzhou, Zhejiang Province "2026 marks the start of China's 15th Five-Year Plan. During this period, more cities are expected to join the GDP-trillion club. While membership brings no formal rewards and isn't a competition, it remains a key milestone in regional development. For cities like Wenzhou, it represents a fresh starting point – and a chance to climb even higher. Wu Bin, CGTN, Wenzhou, Zhejiang Province."

Original link: https://news.cgtn.com/news/2026-01-22/VHJhbnNjcmlwdDg4NjQw/index.html