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EconomicChina·6 Sept 2026 · 1d ago

Zheng'an, China serves as a major hub for guitar manufacturing

AI-summarized · Neutrality-checked

In under a decade, Zheng’an, China, transformed into a global guitar manufacturing hub producing one out of every seven instruments sold worldwide. Following a 2012 local government initiative titled “return the phoenix to the nest,” skilled migrant workers like Shenqu Guitar founder Zheng Chuanjiu returned to the town to establish operations, aided by tax exemptions and free rent. By 2025, the town’s 87 homegrown brands exported 248 million yuan worth of guitars to over 40 countries. This industrial shift was supported by both central and local government investment, which leveraged the region's climate and sought to retain the local working-age population.

Consequences

The continued use of government subsidies and tax rebates to support specialized manufacturing is likely to persist as a strategy to prevent population flight from rural counties to major urban centers. However, these state-backed industrial support practices remain a point of international friction, as similar assistance in other sectors has faced criticism from the United States and Europe.

Sources

Hong Kong Free Press
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