Located along the southeast coast of China, Zhejiang Province is south to Yangtze Delta and close to Shanghai, the metropolis of China. There are over 100,000 square kilometers of land area and over 44 million people in Zhejiang Province. The provincial capital is Hangzhou, which is a world-famous scenic city. With light and textile industries as the economic mainstay, Zhejiang Province has highly developed processing industry and a great number of medium and small size enterprises. Since adopting reform and opening policy, Zhejiang has witnessed rapid economic growth, with remarkable rise in comprehensive strength. Its economic status in China has gone up from the 7th in 1990 to the 4th now.

In 1999 Zhejiang Province recorded a GDP of Yn535bn and per capita GDP of Yn11993, up 10% and 9.5% respectively over last year. The Province has formed the preliminary opening-up pattern of various tiers and all directions, with international tourism city like Hangzhou and coastal cities like Ningbo and Wenzhou as the leading force while coastal economic opening-up cities and counties together with various state-level and provincial-level development zones as the main body. Along with rapid economic development, the investment environment of Zhejiang Province is further improved. With the completion of Shanghai-Hangzhou-Ningbo Expressway and Jinhua-Wenzhou Railway, Zhejiang has basically established the comprehensive and mutual-supporting transportation network consisting of road, railway, airway and waterway. In the field of postal service and telecommunication, the areas above county level have all carried out business of program-controlled telephone, wireless paging and mobile phone. The electricity network construction has entered the new stage of modern electricity industry, with main features of "huge machines, huge power plants, huge electricity network, ultra high voltage and high automation degree". Qinshan Nuclear Power Plant has basically become the most important nuclear power base in China. Zhejiang has over 6400 kilometers of coastline, 3061 islands of various sizes and 42,400 square kilometers of sea area (interior sea and territorial sea). Zhejiang has formed port areas from north to south around five big ports, which are Ningbo, Wenzhou, Zhoushan, Zhapu and Haimen. In particular, Beilun Port of Ningbo owns China's biggest container terminals of international third and fourth generation as well as 14 berths ranging from 25,000-200,000 tonnage, able to accommodate ships up to 200,000 tonnage.

The annual throughput of the port ranks the second in China. Relying on the advantage of fishery, port, scenery and oil, Zhejiang Province endeavors to develop marine fishery, transportation, chemical engineering and port industries. In the 21st century, Zhejiang will become an important base of electricity and chemical engineering in East China, and giant of marine economy. With pleasant climate and beautiful landscape, Zhejiang Province has 7 national and 23 provincial scenic areas and over 230 important cultural relics under protection by the provincial government or higher authority. There are many scenic spots attracting tourists from home and abroad to linger, such as the picturesque West Lake, majestic Qiantang River Tide, summer resort Mogan Hill, Sea Buddhism Heaven Putuo Hill and beautiful Yandang Mountain. Enjoying the reputation of "Hometown of Hundred Craftsmen", Zhejiang has rich culture and numerous talented people. People of Zhejiang Province are hardworking, good at business operation and management, so the quality of labor force here is high. The advantages of regional location and human resources have laid solid foundation for the sustainable economic development of Zhejiang Province. With the deepening of China's reform and opening-up as well as the rapid economic growth of the Province, the foreign economic relations and trade of Zhejiang also gets on the fast track of stable development. Since reform and opening-up, the foreign trade of Zhejiang Province has achieved outstanding results. From 1979 to 1999, Zhejiang concluded an accumulated sum of US$111bn in import and export, maintaining an average annual growth rate of 30.4%; exports recorded at US$83.2bn, up 28.1% year on year. The growth rates are higher than the provincial economic growth rate of the same period. In 1999, the province's total value of foreign trade reached US$18.305bn, including 12.871bn in exports. Zhejiang ranks the 4th place in china in both total trade volume and export volume. Foreign trade has become an important driving force for the economic development of Zhejiang Province. With the continuous development of foreign trade, the export commodity structure of Zhejiang Province is gradually optimized. The export of traditional commodities grows steadily, such as silk, teas, textiles, oils, cereals and foodstuff, arts and crafts, native produce and animal by-products, light industrial products, etc. Some new products developed recently also sell very well in international markets, such as machinery, equipment, hardware, chemicals, medicines, electric appliances, high-class dresses, etc. The adjustment of commodity structure has made preliminary achievements. According to international trade standard, manufactured products accounted for 88.6% of exports in 1999, while export of mechanical and electrical products reached 28.1%. Zhejiang has fostered some key commodities and famous export brands with export sales exceeding US$10m.

The foreign trade channels and export markets are expanding. While consolidating and further exploring traditional export markets in Europe, America, Japan, Southeast Asia countries and regions, Zhejiang Province enhances exploration of new markets in Latin America, Africa, Russia, East Europe, etc. The pattern of diversified export market has taken basic shape. So far Zhejiang Province has established direct economic and trade relations with over 190 countries and regions in the world. Recently Zhejiang Province actively carries on the "macro trade" strategy and vigorously promotes the diversification of business entities engaged in foreign trade. The Province has basically formed a foreign trade team in which state-owned, foreign-funded, collective and private enterprises develop together. In 1999, Zhejiang Province already has 20 large foreign trade enterprises such as Zhejiang Silk Import and Export Corporation, with export value each exceeding US$100m. The successful stock listing of Zhejiang Zhongda Co., Ltd. and Zhejiang Orient Group Co., Ltd. as well as the establishment of Zhejiang Zhongda Group Holding Company marks that the system reform of foreign trade and economy has achieved substantial progress in Zhejiang Province. With the faster reform pace of China's state-owned enterprises, the reform of state-owned foreign trade enterprises in Zhejiang will make more steady steps by following the principle of "concentrate on big enterprises and free small enterprises, focus on certain business scopes and leave others". The opening-up policy of China and industrial restructuring in the world offer golden opportunities for Zhejiang Province to utilize foreign capital. With years' hard work, the investment environment of Zhejiang Province is improving continuously, the structure of foreign investment is becoming more reasonable while the field and scale of foreign capital utilization keeps expanding. So far Zhejiang has 58 economic and technological development zones at different levels, including 8 national and 50 provincial development zones. The establishment and development of various development zones in Zhejiang Province make themselves the main destination of foreign capital. According to a statistic report in 1999, Zhejiang Province has approved 16,697 foreign-funded enterprises, utilizing actual foreign capital of US$9.887bn. There are 862 projects with total investment each exceeding US$10m.

Foreign capital introduction not only covers the financial shortage in economic construction of Zhejiang but also brings in advanced technology and management of the world, which is very helpful for technological progress and industrial restructuring of Zhejiang Province. The Province will take the opportunity of enhancing key development zones and combine the urbanization process to keep improving investment environment and expanding fields in foreign capital utilization. It will also work hard to improve the overall level of foreign capital utilization by actively guiding foreign investment into basic industry, infrastructure and enterprises engaged in high and new technology as well as products with high added value. Recently the foreign economic and technological cooperation of Zhejiang Province has developed smoothly and made good achievements, with business scope and professional team expanding continuously. The Province concluded a turnover of US$338m in foreign labor contracting and dispatched 11,500 laborers abroad in 1999, which marked an increase rate of 12.6% and 4% respectively over the same period last year. The fields of foreign economic and technological cooperation has expanded to construction, hydroelectricity, marine fishery, marine transportation, agriculture, medicine, light and textile industry, electric appliance, etc. With the launch of "Two Promotions" project of Zhejiang Province, its foreign economic and technological cooperation has made new progress. By the end of 1999, the Province has approved 555 projects overseas with total investment exceeding US$300m. Some enterprises of economic strength have established factories abroad with their current equipment and mature technology, greatly promoting overseas processing trade and export of goods, technology and equipment. Several large marketplaces also start to establish their branches abroad. Facing the turn of the centuries, the foreign economy and trade of Zhejiang Province will firmly grasp the historic opportunities of China's imminent entry into WTO and international economic restructuring. Zhejiang will give full play to its economic and regional advantages, further expand opening-up, promote macro development by macro opening-up and speed up the pace of joining world economy. The foreign economy and trade will make new efforts for China's stable economic growth and the early realization of basic modernization in Zhejiang Province.