Industry development is key to village revitalization. In the new era, there has emerged a dual-purpose of industry development in Chinese villages: to increase villagers’ income and to achieve green and sustainable development. This case is derived from Hesilu Village of Chengxijiedao of Yiwu City in Zhejiang Province, offering valuable lessons about how to achieve this dual-purpose.

Hesilu Village has a population of 1,166, covering an area of 3.7 square kilometers. Its distance to Yiwu downtown is about 20 kilometers. The village has transformed itself into one with economic vitality within a decade. In 2008, its economy was based largely on self-supporting family agriculture. Although the village had other sources of income, its collective economy was weak with its collective property having nearly 100 million RMB in debt. However, per capita income of the village reached 43,580 RMB in 2018. Now three green industries (i.e., lavender industry, rice wine industry, and cultural tourism industry) have been developed and are thriving together!

Hesilu Village has undergone this transformation in five steps. Firstly, it conducted a village-wide planning, which led to the aim at green and sustainable development. Then the village leveraged its proximity to Yiwu downtown, focusing on developing itself into Yiwu’s Provence. Lavender was, therefore, introduced from Europe and Xinjiang Province. Now “Lavender Tours” have become the village’s branding tourism project. High value-added lavender products such as sachets and soaps have also become new growth areas. Thirdly, the village expanded its cultural tourism projects to its ancient village buildings. A well-known landscape and architecture design company was recruited to preserve, plan, and develop these buildings. The addition of “Ancient Village Tours” has further increased the competitiveness of its cultural tourism industry. The fourth step is that the village developed rice wine industry, tapping into its traditional wine making process. Now it is running a public relations campaign for this more recently developed industry through various media such as workshops, displays, and festivals. The fifth step is that in 2018 the village leveraged China’s transformation into a learning economy, hosting groups from around the country who were eager to learn its success in village revitalization. These groups have not only brought revenues to Hesilu Village, but more importantly, popularized its practices associated with green and sustainable development.

The success in this case lies in proper management of two key issues in the process of rural industry development. The first issue pertains to the influx of capital and resources. This influx tends to maximize the interests of its sources outside of the village, thus neglecting the holistic development of the village. In this case, Party Branch of Hesilu Village practiced its principle of justice, so the interests of the village have been well protected. The second issue relates to the balance between collective economy and self-employed and private businesses. In this case, sufficient space has been given to the latter to participate in the process of rural industry development, which has in turn contributed to the economic vitality of the entire village.