Xiangzhou Woolen Mill

Workers of Xiangzhou Woolen Mill were working in the workshop. (Photo taken on July 20, 1991 by Xinhua News Agency)

BEIJING, Nov. 27 (Xinhua)--Xiangzhou Woolen Mill was introduced to Zhuhai before the establishment of the Special Economic Zone. It is the first industrial enterprise conducting compensation trades on the Chinese mainland. Therefore, it is the earliest example in Zhuhai of inbound industrial investment in terms of reform and opening-up policies.

The mill seems small in size but has left us with many legendary stories.

First of all, it was established in an astonishing short time. According to records, the construction of the mill started in November 1978 and completed in January 1979. The mill began production partially in May and fully in November. The entire process took only one year. It shows how earnest Zhuhai city was towards incorporating changes and realizing development through innovation.

Secondly, the equipment came from several countries, namely Poland, Japan,Britain and West Germany. The mill bought equipment as long as the quality was guaranteed. Though not very standardized, the equipment ran very well.

Thirdly, more than 50 diplomatic envoys attended the production initiation ceremony. Being the first enterprise engaged in compensation trade in the country, it caused a great sensation. Recalling the day of ribbon cutting, Huang Guoming, the 70-year-old former director, says he was very excited that day.“We had diplomatic envoys from more than 50 countries along with more than 500 guests and journalists. Newspapers in dozens of countries covered the event. It was really unprecedented,” recalls Huang.

Fourthly, it ended the system whereby “everybody eats from the same big pot” – equalitarian treatment of enterprises and individuals regardless of their performances. In order to ensure product quality and production efficiency, the mill rolled out a salary system featuring “piecework according to collective quota; commission according to the proportion of over-achieved workload”.The mill’s employees earned the highest salaries at that time across Zhuhai area. “Some workshop directors could earn 300-400 yuan a month, salaries higher even than mine, while back to those days, the average salary on the Chinese mainland was less than 100 yuan a month. That’s why a growing number of young people wanted to join us,” comments Huang.

Moreover, the woolen mill’s development also caught the attention of the Party and state leaders. Deng Xiaoping, the chief architect of China’s reform and opening-up, visited Xiangzhou Woolen Mill during his first inspection trip in Zhuhai in January 1984. He was very meticulous and asked many questions about the mill’s construction, raw materials’ sources and product sales.

Xiangzhou Woolen Mill accomplished glorious achievements and set a model for China’s reform and opening-up. Just as Huang Guoming understands,“Zhuhai might be a remote costal town. However, this woolen mill was a bright spot – a spot of reform and opening up. Don't frown at its smallness. It is brilliant, really brilliant.” (Reporter: Chen Yu)