An official in Wenzhou told China Daily earlier that the city has asked that the maximum be set at $200 million a year for each person. A central government endorsement is still pending.

"The move would help businesses in Wenzhou to branch into overseas markets and build stronger ties with foreign companies," said Zheng Chenai, chairman of Wenzhou Fashion Association.

"More importantly, it would give Wenzhou's private sector an opportunity to make overseas acquisitions at a time when the economy in the US and Europe is experiencing difficulties."

Moving the main part of his company from Wenzhou to New York in 2008, Chen Jianhua has successfully introduced his clothing brand, Brave-man, to the US market.

"We used to manufacture suits, ties and other formal clothing in Wenzhou for clients in the US, which made little profit, so I launched the office in New York to be the wholesaler and the manufacturer at the same time," said Chen Jianhua, the founder of Zhejiang Brave-man Dress Co Ltd.

In 2009, Chen opened one store in Chicago and a flagship store in Los Angeles, wholesaling his products as the first step to let the public know the brand.

"I've spent about $30 million expanding the wholesale business in the US so far, and luckily, the annual sales of the two stores keep increasing 30 to 40 percent," Chen said.

He added it is much easier to save costs by manufacturing the products in Wenzhou, labeling the prices of products by himself and selling them in the US directly.

As he expected, the company will be able to make more than $10 million in profit in the US this year.

In order to move his focus to be the manufacturer and wholesale provider, Chen had to shut down the store in Chicago in March and will soon end the direct-selling business in Los Angeles.

"I have got about 200 regular clients in the US by selling my products in their stores. Now my own stores will be the wholesale provider instead of the direct seller," Chen said.