A city in east China embraces cultural diversity and fosters friendships with its international community– Beijing Review

Expats spend traditional Chinese New Year at a local family’s apartment in Yiwu, Zhejiang Province, in 2022 (COURTESY PHOTO)

Egyptian businessman Elsayed Aboutaleb has lived in Yiwu, a major commodity hub in Zhejiang Province, for nearly a decade. He runs a foreign trade company.

Before relocating to China, he had already learned about the country from his colleagues and formed friendships with some Chinese traders. In 2015, he visited Yiwu in search of business opportunities, never imagining he would find a second home there.

Yiwu is famous for the Yiwu International Trade Market, the largest small commodities wholesale market in the world. Known as “the world’s supermarket,” it attracts millions of buyers from around the world seeking a diverse range of commodities, from textiles to electronics, along with efficient logistics and a favorable business environment.

The permanent resident population of Yiwu is approximately 1.903 million, of which around 1.433 million are migrants from other parts of China and the world. Over 300,000 expats reside there, including 21,000 who run businesses, making the city’s expat demographic comparable to that of metropolises like Beijing, Shanghai, Guangzhou and Shenzhen. As international merchants flock to the city, small commodities produced across China are continuously exported to markets in Southeast Asia, Africa, the Middle East and other regions.

“Doing business with Chinese people has been a true pleasure. They treat expatriates like me with kindness,” Aboutaleb told Beijing Review.

Seizing opportunities

The well-established sales networks and welcoming business environment are what have prompted Aboutaleb to stay in Yiwu. “At the Yiwu International Trade Market, you can find almost any product you desire,” he explained.

The international trade market, the most eye-catching sight in the city, covers 6.4 million square meters of commercial space and is currently divided into five zones with over 75,000 booths selling 2.1 million kinds of products. Roughly categorized: Zone 1 is for toys, gifts jewelry and accessories; Zone 2 for new-energy products and bags; Zone 3 specializes in glasses and cosmetics; Zone 4 supplies hats, socks and scarves; Zone 5 offers daily necessities, household items and goods imported from abroad. Additionally, Zone 6 is under construction.

A well-circulated saying suggests that if you spent one minute at each shop, it would take three months to visit the entire market. Walking from Zone 1 to Zone 5 is a 3-km journey and visitors usually need to hail a taxi or take a bus to travel between them.

Yiwu’s government work report showed that in 2023, daily foot traffic at the market exceeded 200,000 visitors.

While the diverse range of goods and foreign trade businesses, such as the one Aboutaleb operates, are crucial to introducing Chinese products to the world, the growing convenience of transportation and logistics also plays an essential role in this process.

One of the biggest advancements in this area is the launch of Yiwu-Xinjiang-Europe, or the Yixin’ou, a railway route that connects Yiwu and Madrid, the capital of Spain. Spanning 13,052 km, it is one of the longest freight train lines in the world, traversing eight countries: China, Kazakhstan, Russia, Belarus, Poland, Germany, France and Spain.

To date, the Yixin’ou has initiated 25 routes, connecting 160 cities in over 50 countries and regions, since it first started operating in November 2014. This railway facilitates global trade by enabling easier access to markets for commodities such as red wine, olive oil and ham from Europe, alongside Chinese staples, mechanical appliances and other equipment.

Data indicate that Yiwu’s foreign trade growth has consistently outpaced that of both Zhejiang Province and China as a whole. From January to June this year, Yiwu’s import and export volume reached 324.77 billion yuan ($46.26 billion), a year-on-year increase of 20.8 percent. Exports alone totaled 288.03 billion yuan ($41.03 billion), reflecting a growth of 21.4 percent from the same period last year.

According to data from the commerce authority of Yiwu, the city’s import and export volume soared from 25.504 billion yuan ($3.63 billion) in 2011 to 566.05 billion yuan ($80.59 billion) in 2023, a growth of 21.2 times.

Yiwu was the first city that Yemeni businessman Wail Yaseen Abdo Al-Maqtari chose to explore in China nine years ago, and he has witnessed its remarkable changes and efforts to transform its small markets into large, innovative, and rapidly developing ones.

Al-Maqtari believes China is a secure country for business. “Commercial transactions are conducted safely, and official departments work to ensure a comprehensive development of the business environment rather than just addressing issues as they arise,” he said.

A recent survey of more than 600 foreign-funded companies shows that over 70 percent of them are optimistic about the development prospects of the Chinese market over the next five years, and more than 50 percent believe the Chinese market has become more attractive, according to the China Council for the Promotion of International Trade.

The robust recovery of the Chinese economy, combined with the country’s ever-improving business environment, has increasingly drawn the attention of foreign-invested companies, as they seek out new growth opportunities.

“China has consistently demonstrated renewal and continuous growth, maintaining long-term friendly relations with others based on mutual benefit. The Chinese market is highly flexible when it comes to enhancing product quality and fostering innovation,” Al-Maqtari said. “Building mutual trust and sharing experiences are essential in the Chinese market, where the credit ceiling rises in tandem with the trust established between buyers and sellers.” 

Iranian businessman Hamid Dehghani (center) helps mediate a dispute between Jimingshan residents in Yiwu in August (COURTESY PHOTO）

“While policies and actions may change, the long-term effects are evident in the steady influx of new buyers into China,” he added.

More involvement 

As a resident in Yiwu, Al-Maqtari has experienced extended services in the city, and a wealth of activities and projects, both large and small, involving Chinese and foreign participants. These include collaborations among foreign residents in opening restaurants and shops, and other long-term partnerships.

The Jimingshan residential community is one of the bases for these international exchanges and collaborations. Covering six blocks, Jimingshan is now home to almost 1,400 expats from 74 countries and regions, whereas its permanent resident population is around 30,000. It is often referred to as the city’s “international residential community” or “United Nations community.”

In response to the community’s international nature, the Jimingshan neighborhood committee has been working to ensure more voices are heard and more concerns get addressed, from both locals and internationals alike.

Neighborhood committees in China are self-governing organizations of residents, responsible for managing community affairs, including social services, local security and public health. Operating under the guidance of local governments and implementing government policies at the community level, the committees serve as a bridge between residents and the government, facilitating communication and addressing community needs.

“There are ongoing discussions between the neighborhood committee, government departments and local and foreign residents to facilitate the exchange of experiences and help shape a shared vision for the development of the community and the city. Additionally, I have participated in seminars that address legislative changes, which makes me feel engaged in the process,” Al-Maqtari said.

Hamid Dehghani, an Iranian businessman, has lived in Yiwu for around two decades. Operating a company, he has been actively engaged in China’s legislative process, offering suggestions on draft laws alongside other foreign residents. For example, when discussing the draft law on combating food waste during a community meeting in 2021, he suggested that restaurants should provide free packaging services to their customers.

“I find it incredible that they allow foreigners to give suggestions on a Chinese draft law,” Dehghani said. “Even the smallest voices are heard and conveyed to the top legislative body.”

Dehghani, who has a Ph.D. in psychology and is fluent in six languages, gives back to the community by helping mediate disputes between Jimingshan residents, especially expats. The neighborhood committee helped him set up an office for mediation in 2019, and gradually more public-minded international residents have joined his team. So far, they have handled more than 130 disputes, involving more than 65 million yuan ($9.25 million).

“I love mediation. I’m thrilled to see people who come for help in anger then leave with hugs and smiles,” he said.

Settling down

With many expats working and living in Yiwu, the city is increasingly catering to the tastes of people from all around the world. For example, foreign investors have opened over 500 restaurants in the city.

Residential communities like Jimingshan offer Chinese language classes for foreign residents and classes in other languages for Chinese residents. This helps bridge the language barriers between the residents, making both business and life easier. Many of the teachers are volunteers and the courses are free.

A traditional Chinese opera class in session at the Jimingshan residential community in Yiwu in September (COURTESY PHOTO）

In addition to courses, themed cultural activities related to different festivals, food and clothing are also held regularly to promote communication and exchange between foreign and local residents.

In 2022, Zhejiang authorities mapped out the construction of the sixth batch of “future communities.” Six communities in Yiwu were listed to undergo the process, including Jimingshan. The term “future community,” as mentioned in the provincial government’s work report in 2019, is based on the idea of urban development to make cities more people-oriented, environmentally friendly and digital.

“I hope that through the joint efforts of local authorities, neighborhood committees, and both Chinese and foreign residents, Yiwu and China will continue to thrive,” Aboutaleb said. “It’s our home, and we wish it all the best.”

(Reporting from Yiwu,Zhejiang Province)  

(Print edition title: Feeling At Home) 

Copyedited by G.P. Wilson 

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