Photo: IC

Wenzhou Sample in the Government's Arms
Wenzhou, the cradle of China's private economy, has suffered a heavy blow from weak export demand caused by the worsening global economic climate.

An investigation by local government there indicated that 13.2% of local small-and-medium-sized companies were on the brink of bankruptcy, drawing the central government's attention.The central government had dispatched officials from the Commercy Ministry, the China Banking Regulatory Commission and State Administration of Taxation to Wenzhou for a spot investigation in June and July.

In early November, Zhejiang provincial government adopted tax cuts up to RMB 10 billion and other policies to help those small-and-medium companies to get through the hard times.