China is the biggest suitcase and bag producer in the world. Since the onset of the pandemic three years ago, the industry has been hit hard due to limited long term travels. But it is now gradually bouncing back, as the coronavirus control restriction eases across the world. Cao Chufeng visits a place in Guangzhou that is famous for producing suitcases and bags, to see the business prospects.

There are so many businesses involving suitcases, bags and leather goods located here in Guangzhou's Huadu district, that it was recently included in a national level list of industrial clusters announced by the central government.

A report by China's General Administration of Customs shows, the export of suitcases and bags increased by around one-third in 2022, compared with the previous year. And local businesses in Huadu have seen the same trend.

Ren Jiahui, Deputy General Manager of Guangzhou Aoweila Luggage Co.,Ltd, said, "In 2022, our business number is similar to the general trend. We had a lot of foreign orders. On the one hand, it may be that the control measures of the pandemic were eased earlier abroad, and on the other hand, China's production capacity had also recovered."

Local governments in Huadu are encouraging the digitization of suitcase and bag production and sales. Businesses are gradually starting to use digital machines and central control systems, which some say has helped their business.

Wang Jing, General Manager of Nadia Lishang Leather Products Co.,Ltd said, "In 2022, our business increased by 30%. The digital transformation has helped a lot. The quality of our products is better, the efficiency is higher, and the cost for our customer is decreased."

Cao Chufeng said, "This is a traditional leather cutting machine, and this is a digitally-controlled one. The owner says it is much more efficient, and the work is done more precisely. And all of these machines are controlled using a central system."

Most suitcase and bag producers in Huadu are located in Shiling town. And a local official believes in 2023 the industry will see an even bigger development.

Huang Zhongting, Mayor of Shiling town in Huadu district said, "There will be more international exchanges and more opportunities for us to participate in international exhibitions, which will increase the number of orders. And the same time, China is also trying to boost domestic consumption."

Businesses I talked to shared the same view as their mayor. They said stabilized production and allowing foreign customers to visit their factory, will give them more business opportunities. Cao Chufeng, CGTN, Guangzhou, Guangdong province.