A tariff quake is reverberating across G20 markets, and the Chinese mainland's auto parts sector is feeling the tremors. In Anhui Province, a vibrant manufacturing hub, entrepreneurs are rewriting the playbook to survive rising tariffs and global trade uncertainties.
In this episode of BizFocus, our reporter Xu Yi travels to Hefei and Wuhu to meet innovators who are turning challenges into opportunities.
From Steel Rims to EV Powertrains
At Huaxia GearWorks in Hefei, manager Chen Li once specialized in traditional steel components. Faced with new tariff barriers, the company invested in lightweight alloy production lines tailored for electric vehicles (EVs). "Our overseas inquiries doubled after we showcased our EV modules," Chen says, highlighting a strategic shift that keeps export orders rolling in.
Digital Overdrive
Beyond retooling factories, Anhui's auto parts makers are adopting digital manufacturing platforms. By integrating AI-driven quality checks and real-time supply chain monitoring, small and medium enterprises can cut costs and accelerate delivery times. "We share design data on secure cloud networks with partners in the EU and the US," explains Zhang Ming, founder of Anhui AutoCloud.
Collaborative Clusters Fuel Growth
Local government incentives have also played a key role. Tax credits for new-energy components and grants for technological upgrades have helped dozens of startups expand their R&D teams. In industrial parks around Wuhu, networking events bring together suppliers, universities, and overseas buyers to spark new collaborations.
Looking Ahead
While the tariff quake shows no sign of abating, Anhui's auto parts entrepreneurs are betting on innovation, partnerships, and diversification. As global demand shifts toward greener, smarter vehicles, this resilient hub is poised to steer the Chinese mainland's auto sector into a new era.
Reference(s):
cgtn.com
