Private sector powers Xingfu to become 30-billion-yuan industrial powerhouse

Forty years ago, Xingfu was a town defined by the autumn harvest and the exodus of migrant workers seeking a living elsewhere. Today, the flow has reversed. This tiny patch of land in Boxing county of Binzhou, Shandong province, spanning just 52 square kilometers — roughly the size of Manhattan — has transformed into a global manufacturing hub driven by the relentless energy of private enterprises.

Instead of skyscrapers, its landscape features a dense cluster of kitchen equipment billboards.

This unassuming town now produces over 40 percent of China's commercial kitchen equipment, generating more than 30 billion yuan ($4.39 billion) in annual output. It has turned local farmers into entrepreneurs, with products reaching over 60 countries and regions across Europe, the Americas and Southeast Asia.

With 41,000 registered residents and over 40,000 migrant workers, Xingfu is a living testament to the private sector's capacity for massive employment generation.

Family workshops to AI

The town's origins were modest. In the 1980s, family workshops produced traditional steamers. By 1993, this grassroots movement had already created over 100 "millionaire households", an extraordinary feat for the era. Today, that ecosystem has matured into a sophisticated network of 2,800 manufacturers and suppliers.

"The journey from family workshops to intelligent green transformation is a microcosm of the private economy," said Liu Dejun, director at the Shandong Academy of Macroeconomic Research. "Private enterprises are close to the market; they drive the technological iteration necessary for high-quality development."

That iteration is on full display at Shandong Kingbetter Commercial Kitchenware Co. Their latest smart stoves don't just cook; they collect energy data, diagnose faults and allow for remote control.

"In recent years, we've focused heavily on intelligent stoves," said Wang Tongxian, general manager of Kingbetter. "The market response has been enthusiastic."

Nearby at Shandong Haoxueer Electrical Appliance Co, innovation takes the form of ultra-low temperature cooling. "Our quick-freeze cabinet uses — 40 C technology to lock in nutrients," said deputy general manager Zhou Liwei. "Even a fish, after being frozen, maintains its cell structure and remains fresh upon thawing."

The company partnered with Qingdao University of Science and Technology on deep-freeze technology, energy-saving environmental protection and commercial refrigeration intelligence.

Their best-selling product, a specialized cabinet for keeping malatang (spicy hot pot) ingredients fresh, filled a market gap and consistently leads in sales.

Constant upgrades

Xingfu's entrepreneurs are increasingly looking beyond China's borders. For Kingbetter, overseas sales accounted for 45 percent of total revenue in 2025, and it has established subsidiaries in Los Angeles and Singapore.

The road to global respect hasn't been easy, though. "In the past, foreign buyers were prejudiced against us as a 'small town' operation," Wang said. To build trust, the company installed live cameras in its workshops as early as 2006, allowing international clients to monitor production in real time. Today, that transparency has paid off, with foreign customers now seeking out Xingfu brands by reputation.

"The early family workshops and local pioneers created a strong grassroots startup atmosphere," said Liu from the Shandong macroeconomic research academy.

For years, Xingfu town's industry relied on cost advantages and scale. But as competition intensified and consumer expectations evolved, weaknesses such as lagging technology, weak branding and shrinking profit margins emerged. Transformation became urgent.

Private entrepreneurs responded by committing to innovation. They invested heavily in advanced equipment, recruited talent nationally, and partnered with universities for research and development.

Today, the town's kitchen equipment products encompass 12 major series and thousands of varieties.

Kingbetter is transitioning from digitalization toward full intelligence.

"While our stoves and ovens are already individually smart, the future trend is the intelligent and digital integration of the entire kitchen," said Wang.

"With AI, the concept of a comprehensive smart solution is becoming a reality," he added.

Two years ago, Kingbetter launched a smart kitchen where any behavior failing to meet hygiene standards is immediately detected and corrected. The system enables complete traceability of the entire food processing chain.

"The core of building a smart kitchen is food safety, which is why many schools are particularly interested," said Wang.

Liu said that Xingfu town's entrepreneurs have consistently anchored themselves in manufacturing, pursuing intelligent and green transformation around their core business.

"This offers important lessons for resource-dependent and agricultural regions that upgrading existing traditional industries is often more sustainable than starting something entirely new," said Liu.

Wang from Kingbetter said: "Kingbetter has become a major producer in the commercial kitchen industry by scale. We expect exports to keep growing. Overseas sales may exceed domestic sales this year."

Shandong Jingdu Kitchen Industry Co, a relative latecomer to international markets, is catching up quickly. Starting exports only in 2024, the private company achieved over 10 million yuan in overseas sales in 2025, primarily to the Middle East and Southeast Asia.

"Exporting is the future trend," said Zhao Panjiang, the company's general manager. "There's enormous room for growth."

Supportive ecosystem

Xingfu town's success reflects a larger pattern. Binzhou city, which administers the town, has made private economic development a priority through reforms and an improved business environment.

In Binzhou, 90 percent of the city's enterprises are private, generating 80 percent of the tax revenue and 70 percent of the GDP.

Binzhou has implemented several initiatives to help entrepreneurs develop their businesses. A platform has helped 16,000 enterprises and 10,700 projects access 940 million yuan in subsidies. Regular talks bring government officials and entrepreneurs together to solve problems face-to-face.

"Activating innovation-driven development is essential to empowering the further growth and expansion of the private economy," said Li Chuntian, Binzhou mayor and a deputy to the 14th National People's Congress.

Binzhou has been promoting industrial progress through scientific and technological innovation, and private enterprises have played a significant role, contributing over 90 percent of the city's total investment in research and development.

Talking about the town's future in developing the private sector, Liu Dejiang said attracting skilled professionals is a challenge.

"Focus should be on the second generation of entrepreneurs and the transition to professional management, while attracting talent in research and development, digital operations, international trade and brand management," he said.

Entrepreneurs in the town are working on this. The town has partnered with multiple research institutes, undertaking over 12 provincial-level innovation projects, leading the development of several industry standards for commercial gas appliances.