Huzhou Tax: Compliance Strengthens the Base as Small Parts Drive a Big Industry

In Huzhou, Zhejiang, seemingly unremarkable 'small parts' — precision gas springs for office chairs, precision busbars for power batteries, and porous carbon materials that boost battery range — are converging into a powerful force for high-quality manufacturing development. The Huzhou tax department focuses on manufacturing sub-sectors, using tax compliance as its core lever. In Anji, Zhejiang Ansheng Jida Precision Technology took the lead in automating manual welding, achieving an automation rate above 90%, annual capacity of over 20 million units and efficiency more than fourfold that of five years ago, with a defect rate under 0.01%. In Deqing, Zhejiang Youge Technology, a supplier of new-energy vehicle battery connector busbars to Volkswagen and Toyota, grew output value from over 100 million yuan in 2020 to 1 billion yuan last year; it is now building a project for 500 million battery connector pieces and 2 million cooling connector systems for artificial intelligence servers annually. Guoke Tanmei New Materials is advancing porous carbon and supercapacitor production. Tax authorities set up a 'tax-enterprise council' and a 'sci-tech enterprise service package' to help firms standardize R&D expense collection and deductions, securing compliance at the source.