Chapter 6 Wenzhou model

After 1992, the Chinese government took more active measures to restrict bank loans to non-performing enterprises, while further encouraging the development of urban enterprises and innovative township enterprises.As a result, some excellent areas have developed into manufacturing centers, and Wenzhou and its Qiaotou town are the most typical representatives.Qiaotou Town quickly dominated the global button production market. In the late 1990s, more than 60% of the world's buttons were produced here.At the same time, Wenzhou has also monopolized the global lighter market. The number of lighters produced by thousands of small enterprises accounts for nearly 3/4 of the total lighters sold in the world.

From Wenzhou to the south, many factories in the Pearl River Delta also started as township enterprises.They don't have a lot of baggage, they don't run poorly like some state-owned enterprises, and they don't need to pay a lot of employee wages.With the rapid increase in the number of township enterprises, the influence of state-owned enterprises in economic activities has declined. Deng Xiaoping was 88 years old when he made his "Southern Tour" in 1992.As he grew older, it was no longer possible for him to do everything himself.Deng Xiaoping himself was capable, there is no doubt about it.His successors, Jiang Zemin and Zhu Rongji, not only persisted in the cause he started, but also expanded and improved Deng Xiaoping's reform line.