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Yudu Grows Textile Industry Into a 100-Billion-Yuan Sector

Yudu: A single strand of yarn weaves a 100-billion-yuan industry (China’s 72 Transformations of Quality Goods)

Close-up of braided yarn hanks hanging on a loom, showcasing traditional weaving craftsmanship.

Photo by https://kaboompics.com/ on Pexels

What changed

Yudu County has grown its textile and apparel industry from basic contract manufacturing into a broader system of product design, smart production and branded exports. The industry now includes more than 3,850 related companies, supports about 300,000 jobs and reports annual revenue above 100 billion yuan.

That shift has changed what local factories can make and sell:

  • Huaxin Knitting increased its annual styles from more than 10 to over 500, while revenue rose fivefold in 14 years.
  • Hongxun Apparel reported a 40% capacity increase after installing smart production systems.
  • Ziyiku developed heated denim designed for temperatures as low as minus 30°C and sells about 800,000 pairs a year in Russia.
  • Local firms now hold 135 proprietary trademarks and 21 Jiangxi-branded products.

Why it matters

Yudu’s story is less about sewing machines than about moving up the value chain. Factories that once waited for outside buyers to provide designs and materials are building local suppliers, research teams, testing facilities and brands of their own.

The change began in earnest in 2017, when Yudu made textiles and apparel its leading industry and set a 1 trillion yuan cluster target. It then added fabric and accessories markets, quality testing, garment washing, research institutes and design platforms. That infrastructure matters because a factory cannot reliably produce complex or fashionable clothing if every zip, button, fabric test and finishing service must come from elsewhere.

Digitalisation is now extending that industrial base. More than 80% of above-scale textile and apparel companies have reportedly completed some form of smart upgrade. At Zhi Fang Yun Lian, sensors and a 5G-plus-AI platform monitor spinning, with reported efficiency up more than 80% and costs down 30%. At Feiliwend, production cycles reportedly fell 30% and rework dropped from 15% to below 5%.

The more important test is whether those gains become durable brands rather than simply faster contract work. Yudu is pushing factories toward both ends of the business: design, where products become distinctive, and branding, where they can capture more value. Its “Laishu” label, for example, builds modern clothing around traditional qipao aesthetics, while other firms are developing functional denim and fashion collections.

That strategy looks promising, but the headline industry totals are reported figures rather than independently verified measurements, and the available account does not separate how much growth came from automation, branding or overseas demand. The clearest evidence is therefore found on the factory floor: more designs, shorter production cycles, fewer defects and products aimed at specific markets.

Sources (7)
  1. 中新网时政新闻Yudu: A single strand of yarn weaves a 100-billion-yuan industry (China’s 72 Transformations of Quality Goods)
  2. 中新网财经新闻A 3.17 trillion yuan industry with 500 million participants: Why is outdoor sports booming in China?
  3. NDTV News- SpecialRobot Trainers in China Earn Rs 85,000 a Month for Boring, Repetitive Chores
  4. 中新网财经新闻Where will 550 billion yuan in additional fiscal funds be used?
  5. 中新网财经新闻China’s economy in focus | New quality productive forces: With top-level design taking root, how will industries respond?
  6. 中新网财经新闻The magnetic appeal of China’s “No. 1 exhibition” draws more than 20,000 foreign arrivals through Baiyun Airport in a single day
  7. kjct8.comPalisade Historical Society digitalizing thousands of newspaper articles from past 100 years

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