Through the lens: How China's eyewear capital smartly reinvents itself

Danyang City in east China's Jiangsu Province commands a title of global industrial significance. It is now the undisputed epicenter of the world's ophthalmic lens production.

"I come here nearly every week to pick up new stock," said a Turkish businessman who has spent half a century in the eyewear industry. For him, high quality and affordable prices have consistently drawn him back, and despite his decades of experience, each visit still yields fresh insights and discoveries about this ever-evolving optical hub.

With a population of fewer than one million, this county-level powerhouse punches far above its weight. Danyang hosts over 1,600 businesses dedicated to the eyewear ecosystem, employing more than 50,000 people and generating an annual output value approaching 20 billion yuan ($2.79 billion) – all while expanding its industrial chain. Its dominance is plainly visible, supplying half of the world's optical lenses and 75 percent of China's total.

Far from resting on its achievements, this traditional manufacturing hub has consistently pursued innovation-driven breakthroughs, fueling a steady rise in export orders. 

In the first half of 2024, Danyang's eyewear enterprises recorded 2.5 billion yuan in import-export volume, marking a 2.8 percent year-on-year increase. Even as recent U.S. tariff hikes have caused a dent in their revenues, local businesses remain confident, having already crafted multiple strategies to navigate the new challenges.

"Some export-oriented firms have already reached agreements with their overseas clients, who have agreed to absorb the additional tariff costs," said Yuan Hongjin, secretary-general of the Danyang Optical Chamber of Commerce, who has visited multiple companies following the U.S. tariff implementation.

"Other companies are actively seeking new customers in alternative markets or reorienting partially toward domestic sales," she said, adding that this was not the first time they have encountered challenges like this.

Many are now strategically shifting their focus towards markets within Regional Comprehensive Economic Partnership (RCEP) member countries and other regions, according to Yuan.

Mastering core technology stands as another "secret weapon" in their arsenal. Cai Xiaogu, founder of an eyewear tech company in Danyang, said his firm's pioneering lithography-based lens tech circumvents foreign restrictions on raw materials and production processes.

Spearheaded by a team predominantly comprised of post-1990s talent from diverse fields like materials science, semiconductors and artificial intelligence (AI), the company has achieved end-to-end innovation, spanning equipment manufacturing to production techniques, after four years of intensive R&D. This breakthrough has already secured tens of millions in orders from leading optical firms worldwide, according to Cai.

The company is establishing processing centers in Singapore and Japan, he said. "Tariff hikes have virtually no impact on us. Global demand for high-end lens manufacturing is immense, and we are highly confident in our capacity for international expansion."

While some firms rely on unique technological breakthroughs, others expand their product lines and accelerate innovation cycles, shielding them from significant tariff impacts. One such company, previously focused solely on lens manufacturing, has embraced a cross-industry pivot. Partnering with an electronics firm over a thousand miles away, it has embarked on a year-long collaborative R&D effort, culminating in the mass production of smart glasses poised for a domestic launch.

"In order for our products to work perfectly with the special display technology, each pair of prescription lenses needs to be super flat, extremely thin, and made with incredible precision," Guo Jingzhou, general manager of a smart glasses firm, explained the technical leap.

Upon the launch of their prototype, which displays navigation, offers real-time translation and harnesses AI features, it instantly captivated young consumers globally, generating substantial pre-orders of the smart glasses, according to Guo.

The shift to smart glasses marks a dramatic financial uplift, he said. "The price per unit is three times higher than regular high-end glasses, which has greatly increased the total value of production. While we previously allocated 20 percent to R&D, this year's commitment will be significantly higher."