Abstract: Yiwu has made remarkable achievements and formed the Yiwu Model so called by all walks of life in the development of the specialized markets and the local industries promoted by world trade. The core of the success lies in its distinctive industrial characteristics, flexible linkage mechanism between trade and industries, and so on. However, when the trade and industries expanded to a certain dimensions, restrictions of resources in land, human and government public services become obvious, Yiwu’s commerce and trade and its driving effect on the industries will surely be weakened. Yiwu should explore the intra-production specialization from the perspective of the national value chain and the global value chain, continue to strengthen the leading position of commerce and trade, while at the same time transfer some parts of the production chain, and launch international cooperation in design and R&D, so as to improve the positioning of the value chain of Yiwu’s whole economy, promote the transfer of the regional economic functions, and turn the Yiwu Model from the linkage between trade and industries to the level of international economy.

Key words: Yiwu Model; global value chain; national value chain; regional economies; trade and industry linkage