Chinese Economy: Traditional manufacturing companies seek new growth
According to official figures, manufacturing companies in China continue to post growth despite a sluggish global economy. One example is in the city of Quanzhou, starting point of the ancient maritime Silk Road in southeastern China's Fujian Province. CGTN's Zheng Yibing reports the success of companies there comes from a willingness to embrace innovation.
Quanzhou, at the forefront of one of the country's traditional manufacturing bases, companies are seeking new growth through modernization.
ZHENG YIBING QUANZHOU, FUJIAN PROVINCE "Through innovation and collaboration, the enterprises are finding their strengths and paths in making profits and achieving bigger goals."
For JOMOO, a company producing smart household products, this is particularly true. In just 30 years, it has become an international giant with over 50,000 sales outlets worldwide. The company attributes its success to a focus on innovation.
LIN XIAOFA PRESIDENT, JOMOO GROUP "And the high-quality development, put briefly, is based upon higher standards as well as intelligent manufacturing."
That can be seen in its large-scale investments in research, running some 30 research institutes around the world.
Like JOMOO, many companies in Quanzhou were once small workshops or factories, making labor-intensive products.
Now, technology is fueling new profits. Shoemaker Huabao is among companies seeing results first-hand.
HUANG JINHUANG PRESIDENT, HUABAO INTELLIGENT DEVICES "The innovation in design and manufacturing devices made us improve greatly. In the past three years, our customers' orders increased significantly because of them, particularly because of our own automated production lines."
Still, these companies face challenges, especially international competition from lower-cost countries. But they are confident.
LIN XIAOFA PRESIDENT, JOMOO GROUP "China has evolved a reasonably-good industrial ecology like in manufacturing in Quanzhou. And this is very essential."
And with more favorable policies like government tax cuts, companies in Quanzhou find they have greater strength to compete globally. Despite a downward global economy, many are now looking to cooperate with other countries and expand their branches overseas.
So this city, once the starting point of the ancient maritime Silk Road, is betting its future on a dedication to innovation. Zheng Yibing, CGTN, Quanzhou, Fujian Province.