Wenzhou is located in the south-eastern coast of Zhejiang province with a total area of 11,784 sq.km, about 11.6% of Zhejiang. The population was 7.39 million at the end of 2002, about 16% of Zhejaing's total.

Wenzhou is a city of light industry and commerce. Wenzhou people are well known for their entrepreneurship. They excel in the trading of light consumer goods and have taken the initiations in shaping a private sector as China opens up and moves towards a market economy. In mid 1980s, a prominent Chinese sociologist described the city as "small commodities, but large markets". The nationally famous "Wenzhou Model" always represents the dynamics of the private sector, but it also means specifically the development of small- scale manufacturers, often family owned, and distribution networks between producers and consumers over the country.