Yiwu Small Commodity Market Development Process, The Government Role In Research

As a county-level city in the middle of Zhejiang Province, Yiwu does not enjoy any geographical advantages. In less than thirty years, however, it has become a well-known international commodity distribution center and a golden commercial and transportation centre for domestic and foreign business people to make investment and start ventures. Commodity market in Yiwu has developed swiftly since Yiwu government has been making market model innovations and playing an active role in market planning and economic environment building.Proper government function contributes to the prosperity of the market. "Tangible hand" of government controls market resources and functions together with "intangible hand" of market. Active function of Yiwu government is neither overall intervention in micro economy nor direct operation in market, but to regulate and motivate market by means of policy guidance and support.At present, Yiwu Commodity Market is at the stage of "high" bottleneck, with cloning of Yiwu market all over China. Moreover, network economy and virtual economy add up to the increasing market competition. Yiwu Commodity Market is losing its traditional advantage. Due to the partial ineffectiveness of government function, Yiwu Commodity Market is facing problems such as unfair market competition, low industrial level, incomplete urban function, low utilization of foreign capital, and lack of highly-qualified personnel.Positive government function surely boosts the development of market. Yiwu government should further guide market innovation, propel modern management and trade measures, carry out brand strategy, improve investment environment, provide information service, regulate market order, adjust management system, and perfect credit system to ensure the sustainable development of Yiwu Commodity Market.