Founders to Heirs: Can the Next Generation Keep China's Factories Running?

Why It Matters

Succession decisions will shape China’s manufacturing competitiveness and consumer sector evolution: generational shifts from production to branding and content-led growth could determine whether family firms sustain growth, modernize products and capture global markets. This transition has implications for employment, domestic private-sector dynamism and policy efforts to support high-quality development.

Summary

A three-generation Chinese family has transformed a failing township towel factory from 1986 into a national consumer brand, with the founder rebuilding the business into one of the country’s earliest household textile names and his sons later shifting strategy to branding and youth-focused content. The current generation pivoted into disposable face towels and lifestyle positioning, mixing Eastern design cues and heritage colours to drive product differentiation and global ambitions. Younger family members now use dramas, livestreams and short-form content to attract over 20 million new young users and revive the brand’s relevance. The story highlights a broader trend as more than 80% of China’s private firms face succession, forcing families to rethink factories, branding and digital engagement.

Original Description

At this year's Two Sessions, China once again emphasized the vital role of the private economy, widely seen as a key driver of the country's growth and innovation. But beneath the surface of policy discussions, a quieter shift is taking place: across the nation, thousands of family-owned businesses are entering a new chapter, passing leadership from one generation to the next. CGTN reporter He Jingyi explores how Grace, a Chinese private company, and its next-generation heir are navigating this transition and searching for fresh growth engines in a rapidly changing era.

📺 Subscribe to our YouTube channel and stay updated with our latest analysis and interviews:👇

https://www.youtube.com/channel/UCgrNz-aDmcr2uuto8_DL2jg 👈

Download our APP on Apple Store (iOS): https://itunes.apple.com/us/app/cctvnews-app/id922456579?l=zh&ls=1&mt=8

Download our APP on Google Play (Android): https://play.google.com/store/apps/details?id=com.imib.cctv

For more:

https://www.cgtn.com/video