Why did Zhejiang's economy grow after China's economic reforms of the late 1970s and early 1980s?

Following the implementation of China's economic reforms in the late 1970s and early 1980s, Zhejiang experienced significant economic growth primarily driven by the expansion of its manufacturing sector.1

This industrial development was supported by several key factors:

• Infrastructure and Power: The province underwent dramatic improvements in its infrastructure and power-generating capacity, which were essential for sustaining industrial growth. This included the development of electric power generation, such as the Xin'an River hydroelectric plant and the later addition of the Qinshan Nuclear Power Station.12
• Foreign Investment and Trade: The designation of Ningbo and Wenzhou as "open" cities played a crucial role in stimulating programs that promoted foreign investment and technology transfers.3
• Market Specialization: The province leveraged its historical role as a commercial and handicraft center. Specialized market towns, such as Yiwu, grew rapidly and gained international recognition for their commodity trade.3
• Agricultural Foundation: While manufacturing was the primary driver of growth, the province maintained a strong and expanded agricultural base, which provided a stable foundation for the broader economy.14