Before the Reform and Opening-up Program，Zhejiang was an agricultural province with a weak industrial foundation and a slow pace of economic development and had very few key national investment and development projects. After the Reform and Opening-up，Zhejiang Province has earnestly implemented the road maps，guidelines and policies of the Central Government and conducted creative work，thus leading to rapid social and economic development. What’s worth noting is that，after the Asian Financial Crisis broke out，the pace of economic development of Zhejiang Province had not slowed down at all and all indicators continued to show strong momentum for growth. From 1997 to 2001，Zhejiang Province’s GDP increased from RMB 463.82 billion to RMB 670 billion and the average annual growth rate registered 9.6%；the amount of exports increased from USD 10.11 billion to 23 billion with an annual growth rate standing at 22%；the per-capita annual disposal income for urban dwellers and the average annual income for farmers increased from USD 7，359 to USD 10，465 and from USD 3，684 to USD 4，582 respectively，with the respective growth rates standing at 9.2% and 5.6%. As a result，Zhejiang Province’s national standing in terms of economic strength was climbing rapidly and got its membership for the club of economically strong provinces.

Why does the economic development of Zhejiang Province exhibites so much vitality and vigor？From the results of the investigation we can see one of the reasons behind the economic success of Zhejiang Province. That is，after the Reform and Opening-up，under the guidance of Deng Xiaoping Theory and a series of guidelines and policies of the Communist Party of China（hereinafter referred to as the CPC or the Party），Zhejiang have made bold attempts in the realization forms of socialist public ownership system，achieved new breakthroughs in growing the public-sector economy and increasing the economic control capacity of the public-sector economy，made significant progress in pushing the development of the mixed-ownership economy，thus a sound economic system which keeps the public ownership in a dominant position while developing various forms of ownership has come into shape.