Located in the golden center of the Pearl River delta in South China, Xiaolan town is in the center of Guangdong province and also the trade and commerce center of the delta. In a radius of 150 kilometers, International airports including Guangzhou, Shenzhen, Hong Kong, are accessible. And the National highways and Provincial Highways go through the whole town.

Strictly adhere to industrial development, Xiaolan town has developed six major industries, including hardware manufacturing, electronics and audio devices, food and beverage, chemicals gumming, packaging and printing, and garments and shoes. Therefore, Xiaolan has awarded many titles, such as China Hardware Manufacturing base, China Electronic and Hi-fi industrial base, National Exporting Base for Hardware, National Torch-planned Hardware Manufacturing Base and China Famous Town for Underwear. The strong industrial development provides the impetus for the development of modern service industry and the modernization of agriculture. Xiaolan in 2006 realized total output value of 11.8 billion yuan, with tax revenue of 2 billion yuan. By the end of 2006, the balance of all the deposits amounted to 17.3 billion yuan. The proportion among the first, second and the third industry is 0.7:59.5:39.8. From 2002 to 2006, Xiaolan has been awarded many titles including 14 national honors, 16 provincial honors and 95 municipal honors. Zhang Dejiang, the Member of the Standing committee of the Political Bureau of the CPC Central Committee and Party Secretary of Guangdong Province, remarked that Xiaolan town is the pioneering town in the construction of new countryside and the model for building a moderate well-off society in an all-round way.