The two regions of “Zhejiang” and “Jiangsu” denote two different models of development pursued by China, the former based on a large number of private domestically owned enterprises based on more endogenous production while the latter is famous for its large number of foreign investment enterprises. Therefore, although both of them adopt export-oriented strategy to increase productive employment and people’s income, the two provinces show different results, especially in the ways of employment and thus the working conditions. The paper concludes that Zhejiang province shows a much lower level of processing trade and foreign exporting enterprises which increases the employment and income of local people, the ratio of self employment and the working conditions whereas in Jiangsu the opposite is true where with high level of processing trade, wages of workers are largely lowered and so working conditions are worse.

March 10, 2007.