By Hu Jian, He Linping, People’s Daily
One in five smart phones, one in four anime merchandise items, and one in five sweaters worldwide are made in Dongguan, a manufacturing hub in south China’s Guangdong province.
The economic pulse of Dongguan has long been synchronized with global industrial and supply chain dynamics.
In the first four months of this year, Dongguan recorded 486.35 billion yuan ($67.73 billion) in foreign trade, up 19.4% year on year. Exports alone reached 291.6 billion yuan, an 11.9% increase.
Dongguan has demonstrated notable resilience in navigating global market challenges, as evidenced by the performance of its manufacturing sector and companies like VIVO.
At VIVO’s quality testing laboratory in Dongguan, every new smartphone model undergoes a comprehensive series of rigorous assessments before move into mass production. Devices endure repeated 1-meter drop tests from 26 angles, undergo 150,000 power button actuations, and withstand 1,000 compression cycles under simulated real-world conditions.
In 2024, VIVO achieved global shipments exceeding over 97 million units, securing fourth position in worldwide market share by Q1 2025. The company maintains robust market resilience despite external challenges.
Vivo collaborates with nearly 400 supply chain partners across display, imaging, electronics, structural components, and semiconductors, with 25%of these partnerships have endured for over a decade. Multiple suppliers have achieved public listings during their collaboration with VIVO. This ecosystem reflects mutually beneficial growth between the manufacturer and its partners.
Currently serving over 500 million users across more than 60 countries and regions, VIVO emphasizes users-centric innovation. “Our commitment to customer-focused R&D investment provides the foundation to navigate market uncertainties, both domestically and internationally,” said the company’s executive vice president and chief operating officer Hu Baishan.
VIVO’s story reflects the evolution of Dongguan’s mobile phone and electronics industry. Since the city produced its first mobile phone in 1995, it has grown into a global production center, now accounting for 1/5 of the world’s total output.
In Dongguan’s Binhaiwan New Area, construction is in full swing on an “AI Island,” which will integrate technology R&D, product manufacturing, and data services. “We aim to establish a national AI application demonstration zone within 6 years, generating an industrial output of 60 billion yuan,” said Luo Bin, an official with Binhaiwan New Area.
“In an uncertain global market, the key lies in focusing on making great products,” said an official with Dongguan’s bureau of industry and information technology. According to the official, the city is selecting key sectors with strong foundations and broad applications to systematically promote initiatives ranging from robotics product development to technological innovation and market integration.
But resilience doesn’t mean there’s no challenge. “Unilateral tariff hikes imposed by the United States led to the sudden cancellation of over 1,000 of our overseas orders. Now that tariffs have been adjusted, customers are resuming shipments, but costs remain high,” said Wang Zhen, chairman of a Dongguan-based toy and baby product manufacturer.
“Trade with the United States used to account for 20% of our exports, so we seized this opportunity to accelerate our transformation,” Wang said, holding up a toy resembling a mythical Baku – a dream-eating creature with a short trunk and a horn. “We’ve developed a full line of Baku-themed toys, with over 150 products now exported to Southeast Asia, Europe, and Japan, generating annual export sales of more than 10 million yuan.”
Adaptability has been critical. The company has enhanced its brand identity with culturally creative products and refined its marketing strategies by exploring integrated domestic and foreign sales. When Chinese e-commerce giant JD.com launched a 200-billion-yuan program this April to help exporters pivot to the domestic market, the company secured a 50-million-yuan domestic sales contract through the initiative.
Diversifying international markets is a shared priority among Dongguan enterprises. In the first 4 months of this year, Dongguan’s trade with Belt and Road partner countries grew 28.8% year on year, trade with ASEAN nations 45.4%, and trade with the five Central Asian countries 56.3%.
In March, in Dongguan’s Chashan township, where a toy and baby product manufacturer is based, the local government signed a strategic cooperation agreement with technology firms and industry associations to build an intelligent industry cluster that combines AI and toys. Just a month later, the first batch of locally developed AI-powered toys hit the market.
According to an official with Chashan township, no matter how global markets shift, Dongguan will remain committed to moving its industries up the value chain, thus enhancing technology, branding, and service capabilities to drive high-quality growth.
