Guizhou's industry catchs up as investors look for new opportunities

With Christmas approaching, production lines in a workshop in a remote county in Guizhou Province, southwest China, are busy working to meet the increasing demand as orders keep pouring in.

Surprisingly, there are few people on the shop floor. Automated welding machines have taken over most of the work.

"The high level of equipment automation has reduced the requirements for workers. This has created job opportunities for local women who can work near home," said Gan Luo, the general manager of Yidong household products company in Changming economic development zone in Guiding County, adding female staff account for two-thirds of the factory's employees.

The factory is now operating at full capacity to fulfill export orders from the European and U.S. markets. "We have established a trade company dedicated to dealing with overseas business. This year's orders have exceeded 20 million yuan (about 2.8 million U.S. dollars) already," Gan said.

A Guizhou local, Gan started his own business in Ningbo, a coastal city in eastern China's Zhejiang Province. For decades, coastal regions attracted millions of people seeking better fortunes. Provinces like Zhejiang and Jiangsu stood out for their geographic advantages, sound infrastructure, advanced logistics and entrepreneurship-supporting policies.

Prior to relocating his operations to Guizhou, Gan's business had been thriving. However, the escalating costs associated with labor, as well as land and energy consumption had emerged as formidable obstacles to sustaining a healthy profit margin. Consequently, Gan turned his attention to his hometown, seeking a more cost-effective solution.

Located in the mountain-ringed southwest, Guizhou itself is a major province for electricity output, which is a big edge for many enterprises. Plus lower wages and land prices, the only obstacle for Gan seems to be the relatively higher transportation costs.

"In recent years, the enhancements to Guizhou's transportation network, along with savings accrued from other sectors, can effectively neutralize the rise in delivery costs," Gan said.

In 2021, officials from the Changming economic development zone and a prominent local enterprise in Guiding County embarked on a business recruitment trip to Ningbo to encourage companies to relocate to their hometown. This initiative was successful in attracting businesses, including Gan, who was motivated by the local government's support and established his operations in Guiding in 2022.

Gan expressed his confidence in returning: "The promising business prospects, coupled with the local government's proactive efforts, have instilled us with confidence."

Simply attracting one or two companies is far from sufficient. The local government understands that only by establishing a complete supporting industry and forming a comprehensive industrial chain can businesses truly settle in Guiding.

Sun Ling, the deputy director of the local industry and information technology bureau, emphasized their focus on the entire aluminum industry chain, from upstream to downstream businesses, as the primary target for investment attraction. This strategic approach aims to bolster the region's economic development and create a thriving industrial ecosystem.

Gan's comeback is part of a broader trend of businesses returning to the region. "The relocation of more enterprises on the supply chain will help reduce the costs," Gan told Xinhua.

At the same recruitment event, after serious discussion with fellow partners, another Guiding native, Yang Liangyuan, who runs an aluminum accessories firm in Ningbo, also decided to relocate his factory home.

"The favorable business environment and cost savings are appealing, but it is the complete industry cluster that truly helps cut costs," Yang noted.

Yang's Guiding factory opened in 2022, and has since been exporting products worldwide. In the first half of 2024, the company's output value had soared to around 12 million yuan.

"The rich aluminum resources in Guizhou ensure we have access to high-quality raw materials, and the strengthening of the industrial chain is a significant boost to our production and sales," Yang explained.

To date, seven aluminum companies have set up operations in the economic development zone's aluminum industrial park, generating approximately 400 jobs. Three additional companies are expected to commence operations by the year end. "The aluminum industry is rapidly taking shape and is on pace to exceed one billion yuan in value," Sun said.