Yiwu is known as the "world's supermarket". But in the early 2000s, its rapid growth faced institutional challenges. Xi Jinping, then Party secretary of Zhejiang province, recognized the mismatch. He compared Yiwu to a fast-growing child needing clothes that fit, and promoted reforms to expand its administrative powers. Yiwu's transformation shows that, when facing development challenges, a correct view of governance performance — following the objective laws and embracing reform and innovation — can create new opportunities.