SHIJIAZHUANG, April 19 (Xinhua) -- Despite being devoid of natural grasslands or sheep farms, Qinghe County in north China's Hebei Province has transformed into a major hub for cashmere raw materials. It processes 8,000 tonnes of cashmere and 50,000 tonnes of wool annually, accounting for 60 percent and 90 percent of China's total, respectively, and generated an annual revenue of 47 billion yuan (about 6.85 billion U.S. dollars) in 2024.

The industry began in 1978 with a farmer named Dai Zilu. He modified a cotton carding machine and combed over 1 tonne of cashmere from 4 tonnes of waste material, selling it for 50,000 yuan -- a fortune at a time when 10,000 yuan already qualified someone as wealthy.

"Locals traveled far to pastoral areas for raw materials, carrying samples to textile mills across the country. Through hard work and integrity, Qinghe cashmere gradually gained a foothold," recalled Zheng Chunyu, director of Qinghe's cashmere industry service center. Within just over a decade, the county became a nationally renowned hub for cashmere distribution.

Today, Qinghe boasts a complete industrial chain, from purchasing raw cashmere to combing, spinning, dyeing, and weaving for garment making and brand sales. The county is home to more than 1,700 cashmere-related businesses, employing over 100,000 people.

After achieving full-chain coordination, Qinghe ramped up R&D spending to advance smart manufacturing. At a shared factory, using intelligent knitting machines and whole-garment technology, a stylish cashmere sweater can be produced in just over 40 minutes. This technology removes the need for seaming, boosting efficiency by 46 percent, cutting costs by 15 percent, and giving the sweater a cleaner look.

As e-commerce thrives, small and medium-sized cashmere businesses in Qinghe face a challenge: their limited scale leaves them unable to afford advanced equipment or seize large, short-term orders during peak seasons. The county realized that innovation was key to unlocking the industry cluster's collective strength, so it actively promoted the "shared factory" model. Today, over 20 shared factories covering dehairing, spinning and knitting support nearly 100 businesses in renting equipment at low cost.

Over the past three years, the number of digital whole-garment knitting machines in Qinghe has increased by 3,300, reaching a total of 4,000. The shared model now enables an annual production capacity of 2,000 tonnes of dehaired cashmere, 6,000 tonnes of yarn, and more than 15 million knitted pieces.

"Even for an order of 200 to 300 pieces, if we send the design to a shared factory in the morning, we can pick up the finished sweaters in the afternoon. This model fits perfectly with our e-commerce rhythm of frequent, small-batch production," said Sun Yuchao, general manager of Hebei Wanting Cashmere.

Now, Qinghe is moving beyond raw materials and manufacturing. "International luxury cashmere coats easily sell for over 10,000 yuan and are highly sought after," Zheng said. "But due to a lack of branding and original design, Qinghe products once got stuck in price wars." To change that, the county government is guiding firms toward upmarket and overseas markets.

At Milan Fashion Week, two Qinghe companies, Jingshang and Daimengde, showcased over 100 fall-winter women's collections and secured deals with more than 50 clients. Wang Zixian, chairman of Qinghe Jingshang Cashmere & Wool Products Co., Ltd., attended Milan Fashion Week for the fourth time. "Based on experience, we introduced new knitwear tailored to European tastes, winning recognition from Italian fashion circles. This strengthens our resolve to enter the high-end European market."

During the event, Qinghe's delegation signed a strategic cooperation memorandum with the Italian fashion institution and appointed Mario Boselli, chairman of the Italy-China Council Foundation, as chief consultant, and signed a strategic cooperation memorandum with the Italy Milan Fashion & Design Association.

Boselli said that the Italy-China Council Foundation will fully promote in-depth cooperation between Italian designers and Qinghe cashmere enterprises, and help Qinghe cashmere build its brand in the European market. He believes that cooperation between the two sides will inject new vitality into the European fashion market.

"With superior quality and a complete industrial chain, Qinghe cashmere is making a breakthrough, from a raw material supplier to a brand and design player," Zheng said.