Berliner Boersenzeitung - Chinese guitar capital's stairway to export heaven

This corner of the southwest province of Guizhou produces one in every seven of the instruments sold worldwide. A decade ago, it had no guitar-making industry to speak of at all.

There are hundreds of specialised manufacturing towns in China, producing items ranging from bicycles to socks.

But the speed and scale of Zheng'an's rise make it an example of the impact of China's industrial strategy when a combination of local and central government investment is deployed to maximise favourable local conditions.

For years, the town's working-age residents left to find employment in factories in Guangdong, southern China's manufacturing hub.

Among them was Zheng Chuanjiu, who eventually started his own guitar-making business in the provincial capital Guangzhou.

"The company was doing pretty well at that time and most of our staff in Guangzhou were also our fellow villagers from Zheng'an," the founder of Shenqu Guitar told AFP.

In 2012, Zheng'an local authorities rolled out an initiative called "return the phoenix to the nest", to encourage skilled migrant workers to return home and start businesses.

"The county officials reached out to us. They wanted us to come back and develop the industry," Zheng said.

Shenqu became the first guitar manufacturer to settle in Zheng'an's new economic zone.

"After I'd been working here for a few years, many friends saw how well I was doing and came here to join me to develop the industry," he said.

When AFP visited Shenqu in July, rows upon rows of finished guitars sat neatly on racks, awaiting final tuning checks before shipment.

"Why go far away to work when home is the best place?" a banner in the factory read.

- Natural advantages -

Within around 10 years, 87 home‑grown brands had emerged from the industrial cluster.

Authorities enticed companies with comprehensive financial, tax and employment support packages -- some were offered three‑year tax exemptions and 10 years of free rent.

Importantly though, Zheng'an has natural advantages in its favour.

The area's climate is perfect for guitar-making, according to master luthier Zhang Weiyi, who relocated his business from Guangzhou in 2019.

"Whether the industry is big or small, whether it's making an impact, that doesn't really matter to me," the 50-year-old said as he carefully sanded down a piece of ox bone to fit into the custom guitar he was making by hand.

"My clients are all longstanding clients... Plus, as artisans, we don't really care much about those things."

Zhang only produces around 150 guitars a year.

However, according to local authorities, Zheng'an as a whole manufactures 2.5 million a year, living up to the name plastered on banners across town: "Capital of Guitars, City of Music".

- 'Nice atmosphere' -

Zheng'an is now an export hub -- sending 248 million yuan ($36 million) worth of guitars to more than 40 countries in 2025.

Streamlining export-rebate procedures is another perk local authorities offer to local firms.

From January to July 2025, for example, registered local enterprises received 147 million yuan in tax reductions and exemptions.

Chinese state subsidies and other assistance have been criticised as unfair by the United States and Europe in recent years, especially in industries such as electric vehicles and solar panels.

But pursuing specialised regional industries is important to stop population loss to big cities, and to boost development in previously neglected areas, Zhejiang University economist Dong Xuebing has argued.

More counties should leverage their unique advantages and industrial foundations to pursue"distinctive, differentiated development", he has written.

The benefits are beyond just economic for locals.

"I think there's a really nice atmosphere around it," said master luthier Zhang, describing how music now often filled the main square.

"All over the streets and alleys, you see quite a few people -- both adults and kids -- carrying guitar cases, probably on their way to guitar lessons."

(A.Berg--BBZ)