But just at this critical transition period, Wenzhou private enterprises have to face a lot of tests. They need not only to cope with the common problems such as rise in raw material prices, energy prices, labor costs, RMB exchange rate and reduction in export rebate rates, but also deal with personalized issues like land bottlenecks and talent shortages. Under such a dilemma, how can Wenzhou private enterprises break through? Many municipal deputies to the People's Congress and members of the CPPCC propose that the key to breaking through lies in innovation. In their view, what need to be innovated are not only the enterprises, but also the government departments.