Shifting the Limousine of Liuzhou to a new level

In response to the financial crisis, the Linyi Liubian industry faced significant challenges. Nearly all local companies are export-oriented, making them highly dependent on foreign markets. As a result, sales for most Liubian firms dropped by 10% to 60% in the previous fiscal year, with net profits declining by as much as 50% to 70%. Some smaller factories went out of business due to prolonged periods without orders and cash flow issues. This led to a major bottleneck in both purchasing and selling, severely impacting exports. To address these challenges, Linyi County, Shandong Province, adopted the "Chai Chuang Zao Zao, find rice under the pot" strategy. The local government guided enterprises to align with international market demands, adjust product structures, expand variety, and elevate the quality and competitiveness of their exports. With support from the Liuzhou Chamber of Commerce, the industry shifted from traditional trade partners to more strategic collaborations, forming a “cluster” model that helped overcome the purchase and sales bottleneck. This effort gradually established an integrated industrial pattern covering raw material sourcing, processing, production, and export. According to statistics, last year, the output value of Liubian products in Linyi County accounted for about 58% of the city's total. This year, the sector showed a positive trend: in the first half of the year, Liubian handicraft exports increased by 11.1% year-on-year, representing over 68% of similar products exported across the city. Meanwhile, the county’s willow planting area reached 107,000 mu, with farmers earning over 1 billion yuan in income—20% of the county’s total agricultural revenue. Linyi County also focused on expanding market access and improving supply chains. To strengthen the industry, the local government issued several supportive policies, including the "Opinions on Further Accelerating the Development of the Liuliu Industry" and the "13 Measures to Support the Liubian Industry." These measures included regional brand development, professional team building, R&D investment, and tax incentives. Over the years, the county has invested over 10 million yuan in subsidies for expanding planting areas and exhibitions, significantly boosting farmer participation. Before 2012, all willow-wrapping companies were exempted from forestry fees and river maintenance charges. Other administrative fees were kept at minimum levels. The county also promoted the "trinity" model of leading enterprises, peasant cooperatives, and standardized bases. In 2009, a project in Beigoutou Village planned to invest 1.2 billion yuan. Today, Linyi features a unique crafts garden, becoming the only wicker crafts professional park in China. Large projects have driven industrial growth, with significant investments in willow cultivation. In mid-August this year, Linyi signed a contract with Changshuihe Farm in Northeast China to plant 10,000 mu of tamarisk, aiming to reach 100,000 mu by 2012. The county plans to invest 10 million yuan over three years, building 100 steamed willow plants to ensure sufficient raw materials for weaving. This is expected to generate 540 million yuan in output value, easing the current shortage and boosting the industry’s growth. Currently, Linyi actively promotes the Liuzhou Chamber of Commerce, which organizes meetings to resolve industry challenges and build collaborative efforts. The chamber works closely with departments such as commerce, taxation, water conservancy, forestry, safety, and highways to establish unified management, procurement, and charging standards. It also encourages companies to enhance R&D and explore the domestic market while maintaining foreign orders. With a domestic market valued at nearly 100 billion yuan, the combined efforts of all stakeholders have led to impressive export achievements for Linyi Liubian.

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