Yiwu: The World’s Supermarket – An Eastern Model of Inclusive Globalization

Nestled in Zhejiang, Yiwu grew from rural peddlers into the World Supermarket. Explore how its flexible supply chain and inclusive trade model redefines grassroots globalization amid geopolitical headwinds.

Nestled among mountains in central Zhejiang, Yiwu is a county-level city with no seaport, no border access, and scarce underground mineral resources. How did it evolve into the world-famous “World Supermarket”? From peddlers roaming country lanes with rattle drums to a global trade hub housing 80,000 storefronts and 2.1 million product categories connecting more than 230 countries and regions, its 40-plus-year journey of growth forms a vivid county-level case of Chinese modernization.

At a time when deglobalization sentiments are rising and geopolitical conflicts keep disrupting global supply chains, Yiwu has become a long-term research focus for overseas media, universities and think tanks. Many international scholars have set aside inherent prejudices, conducted field research locally, and re-examined this small commercial city and its distinctive path of China’s opening-up.

Small consumer goods have fostered massive industrial clusters, and its commercial network enables buying from and selling to the whole world. The grassroots market responds flexibly to changes, while public policies provide targeted support. Behind these identities, Yiwu reshapes global perceptions and raises a new proposition: globalization is never a development model exclusive to the West. Upholding openness, inclusiveness and shared benefits, grassroots commerce can also deliver a win-win modernization path for all parties.

From Stereotypes to In-depth Academic Exploration

For a long time, Western public opinion viewed Yiwu market through fixed stereotypes, simply labeling it as a distribution hub for cheap small commodities. In earlier years, The Economist put forward the “Altasia” thesis, claiming manufacturing orders would shift massively to India, Mexico and other regions and predicting the decline of China’s foreign trade foundation. Yet year-on-year rising foreign trade figures have completely shattered such pessimistic forecasts.

Today, with the rise of this eastern city, global media regard Yiwu as a barometer of global supply chain health and continuously track its commercial movements. Fluctuations in orders and commodity prices at Yiwu International Trade City often reflect global holiday consumption trends and trade directions earlier than national macroeconomic statistics.

In 2025, Yiwu’s total import and export volume exceeded 836.5 billion yuan, up 25.1% year-on-year, with 156 countries and regions recording trade volumes of over 100 million yuan with Yiwu. In 2026, Yiwu’s foreign trade hit another record high, achieving an import and export total of 486.42 billion yuan in the first half of the year, a year-on-year increase of 19.9%. Strong trade resilience, fast-adapting flexible supply chains and diversified overseas market layouts have prompted overseas observers to fully change their perspectives.

Against the backdrop of rising tariff barriers in some countries, Yiwu merchants did not passively endure shrinking orders. A bottom-up transformation toward market diversification has quietly unfolded. A report by the Financial Times noted that local business operators have proactively reduced reliance on European and American markets and vigorously expanded markets across ASEAN, the Middle East, Africa and Latin America – the Global South.

Solid data has proven the effectiveness of Yiwu’s shifting export structure. In 2025, Yiwu’s imports and exports with Africa, Latin America and ASEAN rose by 23.4%, 14.1% and 46.7% respectively year-on-year.

The influence of market demand extends far beyond simple commodity transactions. CNN has long named Yiwu the “Christmas City”: Christmas goods popular in the US can complete design, mold opening and mass production within just 45 days in Yiwu. Even amid persistent China-US trade frictions, large European and American retailers remain reluctant to abandon its mature industrial chain.

Spain’s El País wrote that Yiwu has refined this capability over decades, turning any popular fashion trend into commercial opportunities. In 2026, many parts of Europe suffered extreme heatwaves, ushering in another sales boom for Yiwu’s small commodity market. Reporters witnessed cooling products including fan hats, misting parasols, pocket fans, cooling blankets and sun protection arm sleeves, most of which were exported to Europe. Ahead of the 2026 FIFA World Cup hosted by the US, Canada and Mexico, merchandise for national teams competed quietly on the shelves of Yiwu’s market.

Beyond media coverage, “Yiwu Studies” has gained traction in international academia in recent years, drawing research from numerous global journals and top overseas universities. Xu Yinghong, senior lecturer at the Party School of Yiwu Municipal Party Committee, has observed that the European Research Council under the EU provided special funding for a field research team led by the University of Sussex, with partners including the University of Cambridge and the University of Copenhagen.

Xu believes this research rewrites the long-standing Western-led narrative of globalization. Early overseas trade mostly expanded through maritime power and monopoly by large capital. In contrast, Yiwu’s commercial boom is driven by millions of individual small business owners. It builds an interconnected commercial community via small commodity trade and pioneers a new grassroots trade model, summarized by Chinese scholars as a “model of civilian-led globalization”.

Cultivating an Ecosystem of Equal and Inclusive Collaboration

Yiwu’s geography is defined by the local saying: “Seven mountains, two waters and one farmland”. It naturally lacks natural resources, seaports and heavy industry foundations. Its rise into a world-class commercial hub stems from the coordinated synergy between an efficient market and enabling government policies, building global competitiveness through complete industrial clusters.

Where does Yiwu’s commercial DNA originate? It is rooted in the time-honored tradition of “trading chicken feathers for candy”. In the old days, peddlers carried shoulder poles across villages, exchanging candy for chicken feathers and waste materials to earn modest profits. The ethos of never dismissing small deals or slim profits persists to this day. Unlike scattered specialized markets elsewhere in China, Yiwu International Trade City is divided by product categories, with dedicated zones for photovoltaic energy storage, umbrellas, bags and luggage. Overseas buyers can source all required goods in one stop.

Instead of cutthroat internal competition, the concentration of merchants creates category landmarks. Global buyers heading for these products will make Yiwu their first destination.

German trade expert Peter Kreuzberg argues Yiwu’s competitiveness never comes from low prices alone. It lies in the industrial ecosystem built on full-category aggregation, ultra-fast response and complete supporting chains, a development model worthy of reference for many small and medium-sized cities in Germany.

International researchers have found that the flexible supply chain operating within a 30-kilometer radius is Yiwu’s strongest asset. All supporting links are fully available: mold processing, fabric production, hardware accessories, outer packaging and cross-border logistics. New products can go from concept to shipment in as fast as 48 hours.

Institutional innovation brings greater inclusiveness. Yiwu pioneered the 1039 market procurement trade model nationwide, simplifying consolidated customs declaration and implementing the tax exemption and non-refund policy, greatly lowering the threshold for small and micro businesses to go global. This system has now been replicated in many specialized markets across China. Nigeria News Agency published an article stating this inclusive trade mechanism offers a reference for commercial development in Africa.

Yiwu has successively launched cross-border e-commerce industrial parks, the China-Europe Yiwu-Madrid Railway and foreign-related legal service windows, providing foreign merchants with interpretation, compliance consultation and multilingual legal services.

The Yiwu Global Digital Trade Center, officially put into operation in October 2025, marks a milestone in government-enterprise coordinated digital transformation. Covering a construction area of 1.25 million square meters, the complex integrates markets, a digital trade port, office towers, commercial streets and apartments. Supported by the Chinagoods platform and intelligent digital tools, buyers can quickly identify goods via photo search, communicate directly with merchants through real-time AI translation and locate target stores using the “Xiaoshang AI Navigation”. This makes it possible for buyers to browse markets, source products and negotiate business without speaking Chinese. Merchants run live streams and shoot short videos, leveraging 10G fiber-optic networks to connect with customers worldwide.

Australian media commented that Yiwu is sparking an inclusive trade revolution. AI tools remove technical barriers in foreign trade, enabling individual entrepreneurs to directly access global markets, with digital trade continuously unlocking new growth momentum.

The personal stories of foreign merchants best illustrate the core of Yiwu’s inclusive trade. Large overseas wholesale markets usually impose high minimum order quantities, blocking ordinary startup entrepreneurs. Yiwu, however, opens the door to global entrepreneurship for small and micro traders from every corner of the world.

Pakistani young entrepreneur Ali Kamran established a trade consulting firm in Yiwu and completed foreign enterprise registration and approval within a single day. Turkish businessman Vili opened a local-style restaurant, turning it into a communication hub for Chinese and Turkish traders. More than 200 foreign restaurants serve as a lively medium for cross-cultural exchange. Operators from over 100 countries have settled down and built their businesses on this commercial land.

Two-way Circulation: A Global Trade Transit Hub

For a long time, overseas public opinion regarded Yiwu merely as an export window for Chinese goods. Yet over the past three years, the growth rate of Yiwu’s import business has consistently outpaced exports. In the first two months of 2026, local imports reached 18.84 billion yuan, surging 52.6% year-on-year. A two-way global trade gateway has taken shape.

The imported goods pavilion in Zone 5 of Yiwu International Trade City hosts national exhibition halls from around the world. The Malaysia National Hall is a prime example. Merchant Zhu Ke said the hall strictly adheres to the origin standard, only sourcing bird’s nest, Musang King durian, handmade white coffee and other authentic products directly from their countries of origin. Today, international merchants no longer only purchase Chinese-made goods; they also bring local specialties into China’s consumer market.

The China-Europe Yiwu Railway connects a major logistics artery spanning Asia and Europe. In 2026, the dual-hub Yiwu-Moscow freight train service was launched, cutting the whole transportation time to roughly 15 days – 30 days faster than traditional sea freight. Folk trade between China and Russia has achieved rapid growth: from January to June 2026, Yiwu’s exports to Russia hit 5.867 billion yuan, jumping 48.49% year-on-year, the highest growth rate for the same period in nearly three years. A Russian goods pavilion has opened in the trade city, realizing two-way commodity flows between the two nations.

Beyond trade, a diverse and inclusive community ecosystem has become the city’s calling card. Jimingshan Community, home to residents of multiple nationalities, is known as the “UN Community”. The community partners with universities to host foreign-language legal lectures and regular outreach covering intellectual property rights, foreign-related traffic regulations and public services. Foreign restaurants are spread across the area, where merchants of different backgrounds communicate and collaborate around business opportunities.

“Yiwu’s shared rule is the business mindset. Prejudices and estrangement fade away through commercial exchanges,” Xu Yinghong explained. Unlike some regions facing governance challenges divided by ethnic and identity labels, Yiwu uses commercial ties to bring people of varied religions, ethnicities and cultural backgrounds into peaceful coexistence. Overseas anthropological research institutions have named this the “market-driven super-diverse symbiosis model”.

Drawing on narratives from foreign entrepreneurs and grassroots trade stories, Yiwu has built an external communication path “using commerce as the medium”. Authentic stories shared by foreign merchants themselves resonate across borders.

An Eastern Answer for Inclusive and Win-win Globalization

Even in Yiwu, challenges persist. For global merchants operating here, deglobalization trends, geopolitical conflicts and cutthroat competition on overseas e-commerce platforms keep impacting the small commodity foreign trade sector. The survival strategies they have developed offer valuable lessons for small and micro traders worldwide.

Scholars and business practitioners at home and abroad generally agree that while Yiwu’s growth is rooted in its unique local environment, its development experience can deliver actionable lessons for many late-developing countries.

Globalization led by Western powers has historically expanded through capital and force, with trade rules prioritizing developed nations and trapping developing economies at the bottom of industrial chains. Yiwu has created an original grassroots trade paradigm, with ordinary entrepreneurs as core trade participants. It achieves mutual benefit through equal transactions, with no political strings attached and no forced barriers to seize overseas markets, allowing small and micro operators in the Global South to share the dividends of globalization.

At this turning point of profound global changes, global society holds diverging views on the future of globalization. Yiwu’s more than 40-year commercial history offers a clear answer: globalization is never a zero-sum game. The world does not need to copy a single Western template. Openness, inclusiveness, shared benefits and win-win outcomes are the long-term foundation of international trade. This is the development code that the path of Chinese modernization contributes to the world.