According to a report by China Daily on January 25, 2026
Zhejiang manufacturing hub crosses a symbolic milestone as innovation and industrial upgrading reshape local economies
Wenzhou, long known as a cradle of China’s private entrepreneurship, has joined the ranks of the country’s trillion-yuan cities after its gross domestic product surpassed 1 trillion yuan ($144 billion) in 2025, underscoring the growing role of private-sector–driven regional growth in China’s economy.
The milestone was announced on Jan 20 during the annual session of the Wenzhou Municipal People’s Congress, making Wenzhou the third city in Zhejiang province—after Hangzhou and Ningbo—to reach the threshold.
Economists say the achievement reflects more than headline growth.
“This is not just a statistical milestone,” said Lyu Miao, an expert at Tsinghua University’s Yangtze Delta Region Institute. “It represents a broader upgrade in Wenzhou’s economic structure, industrial ecosystem, and capacity for innovation.”
A Private-Sector Powerhouse
Wenzhou’s rise is closely tied to its exceptionally strong private economy, a distinguishing feature that sets it apart from many other large Chinese cities.
By November 2025, the city hosted 1.56 million market entities, the highest number in Zhejiang province. Private firms accounted for more than 90% of the value-added output of large industrial enterprises, providing a key engine for sustained growth.
At the national level, Wenzhou is now one of 28 mainland cities with GDP exceeding 1 trillion yuan—a group increasingly seen as the backbone of China’s economic resilience as growth becomes more regionally differentiated.
Manufacturing Upgrade and Industrial Momentum
A robust industrial base continues to anchor Wenzhou’s economy. In 2025, the city supplied a record 15,200 mu (about 1,013 hectares) of industrial land, channeling resources toward advanced manufacturing and emerging industries.
Output in Wenzhou’s five traditional pillar industries rose 11.4%, while its five leading emerging industries expanded 12.6% year-on-year. Overall industrial output grew 10.3%, ranking first in Zhejiang and outperforming the national average for 33 consecutive months.
The data highlight how parts of China’s manufacturing heartland are shifting from low-cost production toward higher-value, more technology-intensive activity.
Innovation as a Policy Anchor
Local authorities have increasingly framed innovation as a central growth strategy. For five consecutive years, Wenzhou’s municipal government has devoted its first official meeting of the year to science and technology development.
In 2025, government spending on research and innovation rose 10.4%, supporting a package of initiatives designed to accelerate commercialization and strengthen links between laboratories and industry. The city’s network of high-tech zones—described locally as “one port and five valleys”—has become a focal point for this push.
A Regional Signal, Not Just a Local Story
The trillion-yuan milestone reinforces Wenzhou’s role as the third pillar of Zhejiang’s economy, aligning with provincial policies introduced in 2022 and reaffirmed in 2024 to support the city’s rise as a hub for high-quality growth.
More broadly, analysts see Wenzhou as a case study in how private enterprise, manufacturing depth, and policy-driven innovation are reshaping China’s regional growth model—often away from the country’s largest metropolitan centers.
Why it matters
For international observers, Wenzhou’s ascent illustrates how China’s next phase of growth is increasingly being driven by mid-sized industrial cities with strong private sectors, rather than solely by megacities or state-led investment. As China’s economy becomes more fragmented and regionally diverse, these local success stories offer clues about where sustainable growth and industrial upgrading are still taking place.