Whoa, here's a theory: the extent of private capitalism in any given Chinese location conforms to its existence as a revolutionary base area during the Communist Party's war with the Kuomintang:
Wenzhou and Ningbo, in Zhejiang, province are the beating hearts of Chinese private capitalism. But neighbouring cities in the same province, such as Quzhou and Huzhou, are not.
What do these thriving local economies have in common? The answer, according to the second paper, Guerilla Capitalism, is they were all bases for local Communist Party guerillas during the 1930s and '40s. These were viable only where local communist leaders forged a symbiotic accommodation with local private sector elites.
The idea being that local CP fiefdoms were able to preserve some local autonomy after 1949 in conjunction with local commercial elites, and so were then able to profit more easily in the general dash for growth after 1978.
There are certainly some odd hybrids across deep China. The towns in Northern Zhejiang and Southern Jiangsu which went heavily for the collectivist and sometimes (neo-Maoist) growth model were historically some of the most prosperous parts of China, something which perhaps meant that they were allowed to promote enterprise early on in the reform process when there were still severe restrictions on specifically private enterprise (and when no-one had any investment capital anyway). But this is where the theory encounters problems: certainly the canonical story behind Wenzhou's rise was that it was a very poor city which decided to bootstrap itself up by turning the local economy fully private as soon as regulations allowed.
There's also the fact that reviolutionary bases werenl;t allowed to exist as communist oases in hostile territory. They were frequently overrun by Kuomintang, japanese or warlord forces, so it's also debateable whether the kind of continuity implied above actually existed. I'll have to check, but offhandits hard to believe that theCPC was allowed to occupy a territorial base at Ningbo while it was just across the river from Shanghai while that city was under the control of, respectively, the KMT, the Japanese and the KMT again.