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Over the past two decades, the landscape of Chinese manufacturing companies has showcased a prevalent growth pattern among many firms: they initially depend on major clients and then seek out new avenues for expansion. Some companies have achieved successful transformations. Take Luxshare Precision, for instance; it expanded its business from consumer electronics to automotive electronics and communications, thereby reshaping its revenue structure. Avonflow has also carved out a niche, becoming an “invisible champion” in the electric heated towel rack sector through technological innovation and brand development. However, some companies have experienced a decline due to strategic missteps or management turmoil. Chundu Group serves as a case in point; its blind diversification led to its downfall, and it has yet to overcome its initial limitations.
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