Summary of Key Points
Anji, once known as the "Hometown of Chinese Chairmaking" for its prominence in the green furniture industry, completed a crucial transformation in 2026: for the first time, the output value of its equipment manufacturing sector surpassed that of the green furniture industry, becoming the county's leading economic pillar. This transition was not about abandoning the old industry but about empowering it with advanced technologies. Conversely, the furniture industry provided practical applications for the equipment manufacturers, creating a mutually beneficial cycle. The government played a vital role in this process by nurturing enterprises step by step, helping the equipment manufacturing sector rise from a supporting role to a leading one and thus finding a way for the county economy to navigate through uncertain times.
I. From "Hometown of Chairs" to Leading Equipment Manufacturer: A Transformation Forced by Circumstances
Anji's chairmaking industry was once very successful—one in every three chairs produced in China came from here, and its exports accounted for half of the national total. However, recent years have been challenging due to high foreign tariffs, competitive pricing of domestic low-end products, and rising costs of raw materials and logistics, which nearly halted the growth of the furniture industry (total output value in 2025 was 39.23 billion yuan, similar to that of 2024). This reliance on a single industry made the economy vulnerable to market fluctuations.
How did the equipment manufacturing sector emerge as a new pillar? It not only helped solve the problems faced by the furniture industry but also experienced rapid growth itself: in 2025, high-end equipment manufacturers generated revenue of 36.237 billion yuan, with annual growth rates in double digits, significantly boosting the county's share of high-tech industries, per-mu tax revenue, and R&D investment. This transformation provided Anji's economy with a more robust driving force.
II. A Mutual Boost Between Old and New Industries
The transition is not about one industry replacing another but about their mutual enhancement:
1. Equipment as a Tool for Improvement: Automation and smart welding machines have reduced labor costs by 20% to 40% in furniture factories while increasing efficiency by over 30%. Intelligent warehousing robots have increased warehouse space utilization by 8 to 9 times and reduced the need for manual handling, perfectly suited for the large-scale export demands of the furniture industry.
2. The Furniture Industry as a Testing Ground: The unique challenges of furniture manufacturing (such as moving heavy items and processing special parts) have inspired equipment manufacturers to develop specialized robots. For example, when furniture companies needed more flexible handling equipment, manufacturers developed suitable robots, creating a closed loop where "furniture companies define needs → equipment manufacturers innovate → the entire industry benefits from the improvements."
III. How Equipment Manufacturers Grow: Local Cultivation and External Recruitment, with Government Support at Every Stage
Anji's equipment manufacturing sector did not emerge out of nowhere; it resulted from a combination of local development and external recruitment, with government assistance at various stages:
- Local Development: Companies like Zhongli Co., Ltd. were founded locally in 2007 and have led the industry for 13 years with their innovative electric warehouse forklifts, eventually going public in 2025, serving as a model of local growth supported by capital.
- External Recruitment: Enterprises like Houlisite chose Anji due to its policies, supply chain advantages, and location (in the Yangtze River Delta region). Their intelligent sorting equipment can replace hundreds of workers at a fraction of the cost of imported alternatives, reducing reliance on imports.
- Government Support:
- Early Stage: Providing platforms, subsidies, and connections with universities to help companies refine their technologies.
- Growth Stage: Offering local application opportunities and connecting them with industry chains to secure orders.
- Leadership Stage: Investing through industrial funds, ensuring land and energy supply, and supporting expansion.
Anji now has a cluster of "small but strong" equipment manufacturers, such as Martin Kerui, which has broken foreign monopolies in semiconductor assembly equipment, and Shuyouyi Medical Equipment, whose surgical instruments won national invention awards, representing significant domestic replacements.
IV. A Model for County Economies to Break Through Challenges
Anji's transformation offers a strategy for other county economies: using technological innovation to reshape supply chains and stabilize old industries amidst uncertainty is a viable path forward. However, there are still challenges:
- Core Technology Constraints: To evolve from an equipment manufacturing base to a hub for intelligent solutions, further advancements in core algorithms and precision manufacturing are needed.
- Global Service Network: Although Houlisite has expanded its services globally (with technicians traveling by helicopter), there is room for improvement in global service capabilities.
- Intensifying Market Competition: The equipment manufacturing sector is becoming increasingly competitive, requiring continuous innovation to maintain a competitive edge.
Anji's goal is to achieve annual revenue of over 50 billion yuan from high-end equipment by 2028 and become a renowned hub for advanced manufacturing in the Yangtze River Delta region. This transformation story illustrates how county economies can transition from traditional manufacturing to high-quality, intelligent manufacturing.
Conclusion
Anji's example shows that county economies do not have to rely solely on their traditional industries. By empowering both old and new sectors and receiving targeted government support, they can find new sources of growth. The key is not to abandon the old industries but to use technology to rejuvenate them while allowing new industries to thrive in local contexts—this may be the "standard answer" for many county economies facing uncertainty.