Hui Zhou: A Model for Economic Innovation in China

This year 2026 marks the start of our country’s 15th Five-Year Plan. The national economy is recovering steadily with new quality productivity rapidly gaining traction while the manufacturing industry undergoes a high-value, smart and green transformation. Looking back, Hui Zhou Charming Enterprises rooted in the region for over four decades commenced operations in 1989 with a "processing trade" OEM model and successfully transformed into one of a few wholly owned enterprises from Hong Kong, Macao and Taiwan in 2011. Today, we employ over 1,000 people. As a manager deeply involved in the factory's production, I have witnessed firsthand the transformation of traditional manufacturing enterprises and experienced the real changes in China's economy and consumer spending.

Hui Zhou Charming’s development is a microcosm of the traditional manufacturing transformation in the Pearl River Delta. In our early years, we relied on advantages in labor and land costs by engaging in export OEM manufacturing, placing us at the lower sector of the apparel industry. Following restructuring in 2011, we moved beyond to an extensive processing model and gradually built an independent R&D and design system. We expanded from manufacturing ordinary garments to producing professional and high-value-added outdoor categories such as extreme weather and skiing apparel.  And in 2021, we launched a photovoltaic program to promote green and low-carbon production in our factory. For over a decade, we have consistently maintained Class A customs qualification, adhered to compliant and stable operations and successfully transitioned from an “OEM workshop” to a modern manufacturing enterprise.

Based on the macroeconomic landscape for 2026, the domestic economy exhibits “stable production, strong exports, weak consumption and sluggish investment”. First-quarter GDP grew by 5.0% year-on-year with the annual growth rate remaining stable. Leveraging on the deeper integration of the Guangdong-Hong Kong-Macao Greater Bay Area, Hui Zhou is positioned as a core city in the eastern region, aiming for a GDP of 1 trillion yuan and a population of 10 million. By strengthening our “2+1” modern industrial clusters and advancing the upgrading of advanced manufacturing, the transformation of traditional industries, and the integrated development of urban and rural areas in tandem, Hui Zhou sets an example for high-quality development in the Bay Area. However, the major impact on the current economy remains insufficient domestic demand which is particularly prominent in the traditional garment industry. Consumer spending has become more rational, and discretionary spending continues to face pressure. Brand clients are widely adopting flexible “small orders, quick response” models to accelerate product iteration which placing higher demands on flexible production and rapid response capabilities. Meanwhile, labor, material and energy costs continue to rise, putting pressure on physical enterprises to balance stabilizing employment and ensuring employee welfare with cost control and risk prevention.

With decades of experience in manufacturing, Hui Zhou Charming has weathered numerous ups and downs in the market including the financial crisis and the pandemic. We deeply understand the resilience of the economy. Given the current complex and volatile external environment and the critical period of internal transformation, enterprises need to proactively adapt. We are currently promoting the digitalization of production and exploring different approaches, such as shifting from OEM manufacturing to independent production, to kickstart new growth momentum.

As we remain grounded and committed, traditional manufacturing will undoubtedly find new vitality through transformation and upgrades. Hui Zhou Charming remains confident in achieving steady progress and long-term success through perseverance and hard work.

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