China Industrial Relocation: Migrant entrepreneurs encouraged to start business back home

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As China's more developed coastal region tries to move up the value chain and away from low-end manufacturing, the inland provinces have been recruiting migrant entrepreneurs to relocate their businesses back home. An embroidery manufacturing park in Central China's Henan Province is a perfect illustration of the trend. CGTN's Xu Mengqi visited a female entrepreneur who led the "journey back home".

These glamorous fabrics are for exports, and they are manufactured from this embroidery factory in Ruzhou, a city in central China's Henan Province. 60-year-old Yan Suyun is the factory owner. Though born and bred in Ruzhou, she has only returned recently.

YAN SUYUN, CEO RUZHOU BAIRUI TEXTILE CO., LTD. "I was doing business elsewhere for more than 30 years. In 1996, I ventured into the textile industry in Zhejiang."

Over the decades Yan Suyun had dreamed to move her factory back home, but having successfully settled in Zhejiang, such a migration would risk losing both her clients and skilled workers. What finally led her to make up her mind was a promise made by the Ruzhou government two years ago.

RU XITAO, DEPUTY DIRECTOR RUZHOU EMBROIDERY MANUFACTURING PARK "The government offered to build new factories, and they are free to use for five years. There is also reimbursement for loan interest, and electricity and water bills."

Zhao Mengmeng, also a Ruzhou native, has been working in Yan Suyun's company for almost a decade. Tempted by the idea of returning but worried about losing a stable salary, she decided to take her chance and follow Yan back.

ZHAO MENGMENG, WORKER RUZHOU BAIRUI TEXTILE CO., LTD. "I now earn a bit less than before, but it's acceptable. After all, it's more convenient to look after my parents and kids from home."

While the relocation offers an opportunity for migrant workers to return home, it also means less people have to leave.

China is encouraging the labor-intensive industries to relocate from the country's more developed coastal regions to inland areas. For a lot of provinces in central and western China, this provides an opportunity to attract more investment and boost local economy. This embroidery manufacturing park in Ruzhou for example, has created more than six thousand jobs locally.

Looking back on her decision, Yan Suyun feels relieved that she made the right choice.

YAN SUYUN, CEO RUZHOU BAIRUI TEXTILE CO., LTD. "When I first came back, I always thought 'what if it didn't work?'. Others who returned at the same time were also very worried and stressed. But we all started making money last year."

There are still tens of thousands of migrants from Ruzhou working in Zhejiang's embroidery factories. But Yan Suyun believes as the local industrial chain matures, more will be coming home. Xu Mengqi, CGTN, Ruzhou, Henan Province.