Zhejiang
People's Republic era

After the People's Republic of China took control of Mainland China in 1949, the Republic of China government based in Taiwan continued to control the Dachen Islands off the coast of Zhejiang until 1955, even establishing a rival Zhejiang provincial government there. During the Cultural Revolution (1966–76), Zhejiang was in chaos and disunity and its economy was stagnant, especially during the high tide (1966–69) of the revolution. The agricultural policy favoring grain production at the expense of industrial and cash crops intensified economic hardships in the province. Mao's self-reliance policy and the reduction in maritime trade cut off the lifelines of the port cities of Ningbo and Wenzhou. While Mao invested heavily in railroads in interior China, no major railroads were built in South Zhejiang, where transportation remained poor.

Zhejiang benefited less from central government investment than some other provinces due to its lack of natural resources, a location vulnerable to potential flooding from the sea and an economic base at the national average. Zhejiang, however, has been an epicenter of capitalist development in China and has led the nation in the development of a market economy and private enterprises. Northeast Zhejiang, as part of the Yangtze Delta, is flat, more developed and industrial.
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