Yiwu is a county-level city in the central part of Zhejiang Province with no obvious geographical advantage or traditional industrial foundation. And yet it has dazzled the country with its sizzling economic figures. The city posted an annual growth of 16 percent in GDP in 2003 on 15.6bn yuan {US$1.9 billion)from the previous year. Its average annual GDP increase from 1978 to 1999 reached 18.5 percent. Exports from Yiwu were valued at US$734 million last year, compared with US$390m for 2002. So what is it about Yiwu that has molded the city into such handsome shape?