Adapting to survive

Due to the uncertainty caused by the US tariffs and a cooling domestic garment market, low-margin operations are increasingly difficult to sustain.

Hu noted that some local companies are shifting to pet products like leashes and harnesses, since lace machines can be modified to produce other items.

"Nearby Shutou town is known for its leather goods. We send raw materials there to make elastic straps, bring them back to Mabu for processing, and export them as pet accessories."

This isn't the first time lace-making machines have been repurposed. Chen recalled that during the COVID-19 outbreak in 2020, local companies adapted their machines to produce ear loops for masks — up to 500 metric tons a day, enough for 1 billion masks. Many companies joined the effort, and even today, buyers still source ear loops from Mabu.

Given market volatility and seasonality, some orders placed with Yutang manufacturers are small — only 500 meters, making profitability difficult. "We rely on having many machines, many styles, and serving the national market. No matter the order size, we take it to keep the industry running," Huang said.

Many lace traders in Guangzhou are Wenzhou natives. One unnamed entrepreneur from Yutang set up a factory in Guangzhou and helped others from the village sell their products there.

The key to selling lace in Guangzhou, Huang said, is speed: "Lace is a semi-finished product used in fashion sampling. We stock our designs in Guangzhou so when clients need something, it's ready to go. Orders placed today can ship tomorrow."

Wenzhou Senzhong Knitting Co is an example of this business philosophy. Over 20 years ago, it moved one of its factories from Wenzhou to Guangzhou. Only recently have those operations returned home to a new factory.

"Now we have counters in Guangzhou, Yiwu, Shaoxing, and Hangzhou, shipping products from the factory to those counters for export," said Lin Aimin, manager of its Guoxing Lace factory.

The Mabu factory has five floors and 200 lace-making machines, though only a few operate currently due to the off-season. Lin said business is quieter this year, and demand usually rises again after July when production of winter lines begins.

Quality counts

To weather the current market slowdown, Lin said the company must focus on quality. "If our products are good enough, we won't be eliminated. We're constantly improving based on market needs," Lin said.

Huaweimei has the same mindset, and multiple awards for technological innovation are on display in Chen's office. "Design innovation is our specialty," he said.

The company has created nearly 2,000 lace patterns, some patented, and built a digital archive of all samples over the past 20 years. "We keep evolving our patterns and materials. Our pattern designs aren't just generated by software — they're rooted in the craft and creativity of our town's master artisans," he said.

Photos of Chen with international buyers hang in the showroom. Mabu's lace has earned global recognition, and some foreign clients come directly to the town's factories.

One Brazilian customer has partnered with Huaweimei for two decades, across two generations. "This young man is the son of our longtime Brazilian partner who has now retired," Chen said proudly, pointing to their photo together.

Many foreign buyers praise the variety of patterns Huaweimei offers. The company fulfills the full supply chain from raw materials, to production, to sales. "If others want to replicate our lace production, it would take at least a decade to match our infrastructure," he said.

Chen served as president of the Pingyang Knitted Lace Industry Association for 11 years and is now its honorary president. "Even though we hold patents, we allow others to produce them. Lace is a livelihood industry," said Chen.

Many lace products require hand-assembled parts, and Chen's factory often outsources this work to local residents. Components are gathered from other villages, assembled, and turned into final products.

In August 2024, Pingyang county launched a plan to integrate and upgrade the lace industry, offering policy support for consolidation and development. This includes priority resource allocation, project subsidies, and rent discounts.

For example, companies with annual output of 20 million to 100 million yuan receive a 0.9 percent sales rebate; those with 100 million to 500 million yuan get 0.95 percent; and firms over 500 million yuan receive 1 percent. Equipment upgrades are also subsidized by up to 5 million yuan.

Previously, household lace workshops were not taxed due to low profits, said Chen Jing, the president of the local lace association, and larger companies provided materials for villagers to process at home.

Now, government-funded incubators with factory spaces and equipment let villagers work on-site and earn monthly salaries ranging between 6,000 and 10,000 yuan.

"Before, villagers had to buy their own equipment and worry about power and safety at home," Chen Jing said. "Now they just come in to work. The new machines are enclosed, and workers wear aprons and hats. Regular patrols ensure safety."

About 21 companies have transitioned from individual operations to join the incubator project over the past three to four years. The project, funded by Mabu's government, offers a "lease-then-own" model that is rent-free for three years if performance targets are met. After this initial period companies can purchase space at assessed market value.

Since 2024, Mabu has focused on upgrading its traditional industries, attracting quality projects, and pursuing clustered, digital, green, and high-quality development.