The Ming dynasty has had the second most profound impact on the structuring and carving of present borders of the Zhejiang province. Economically and historically, South Zhejiang has been poorer than North Zhejiang, but in the recent years, with the economic reforms brought about by Deng Xiaoping the hilly and mountainous terrain of South Zhejiang has seen unprecedented growth and high exports. This, coupled with low labor costs, keen acumen of the local people towards money making and international markets and the already prospering North Zhejiang have sky rocketed Zhejiang past many other provinces in terms of economic growth and potential.
The most notable, reforming and respected theory in the history of Chinese market is probably a model, dubbed as the ‘Zhejiang model’, which lays importance on certain key facts such as an emphasis on small scale businesses and industries, encouragement of entrepreneurship and production of low cost goods at huge volumes. This one mantra has turned tables when it comes to the economic situation of Zhejiang.
Known as the “rice and fish” market, Zhejiang, especially North Zhejiang has been producing and exporting these agricultural products on a large scale historically and the demand of Rice, Fish, Jute and Silk products has always been high in the national and international markets. The Zhejiang model has lately helped in reforming the tattered and backward area of Southern Zhejiang with establishment of manufacturing and industrial units, mainly Electrochemical, Chemical, textile and food processing and packaging industries.
Some economists now fear that the very reason behind the economic growth of this province will also be a reason for a possible future economic crisis. They debate that the ‘Zhejiang model’ of trade is so exhaustive that it puts strains on the raw materials and the output costs being low, the end products do not fetch a respectable revenue, besides, the condition that low costs need to be maintained further dampen future growth prospects of manufacturing units when it comes to using advanced technologies and techniques. All this is resulting is a loss of R&D activities and therefore, the goods produced here might not be able to compete with good produced in the international markets, which are rolled into the market after quality R&D analysis.
Agriculture has always been an important economic booster for Zhejiang. Fisheries and cash crops also bring in considerable amount of foreign revenue. The Zhoushan fishery is the largest of its kind in Asia. “Longjingg Tea”, which is a famous brand for tea the world over, is a product of Zhejiang only.
Considerable investment has gone into infrastructure and the Hangzhou Bay Bridge, which is being constructed over water between two districts of Hangzhou, is a testimony of this fact. Once complete, this bridge will be the longest sea bridge in the world.
Zhejiang also has diverse culture and language, mainly because of the reason that it is a hilly province and people have been living in small clans and pockets around these hills, each clan having a distinct culture, language and music of its own, giving Zhejiang a very cosmopolitan outlook. It might get difficult to interact with the locals here because of so many dialects, and it is suggested that one hires or teams up with a localite in order to communicate clearly.