Are China’s factories going bust?

Yiwu, a noted wholesale market in Zhejiang province, China, is now a household name in India, due to the diplomatic and media furore surrounding the treatment of two Indian traders in the city recently. Until the financial crisis (2009), Yiwu was one of the stars of the China success story due to thriving private enterprises. In 2011, the net profits of Yiwu’s enterprises alone decreased by R13,900 crore, symptomatic of the larger problem hitting non-state enterprises in coastal boomtowns of the Pearl and Yangtze Delta Regions.

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