When sourcing custom display racks from China, one of the most common concerns for international buyers is supply chain stability and environmental compliance.
Recently, a client from the United States reached out to me with a pressing question: “Leo, I heard that the local government in Xiamen no longer allows in-house painting or powder coating workshops due to environmental laws. Is this true?”
It became clear to me that there is a significant amount of misinformation circulating in the market. As the manager of Chic Display, I want to provide first-hand clarity on the actual manufacturing landscape in Xiamen today.
The Myth vs. The Reality
The short answer is: No, painting workshops are not banned. However, the regulations have become much stricter and more specific, which explains why some buyers might be getting the wrong impression.
The “Grandfather” Clause for Established Factories
Our facility in Xiamen operates its own in-house powder coating and painting workshop, and we run our production lines every single day. The reason we can do this is that our facility was established with all the necessary environmental permits long before the new restrictions were introduced.
The 2-Year Policy Shift
Two years ago, the Xiamen local government introduced a new environmental policy. This policy restricts the approval of NEW “acid-washing” (pickling) and traditional painting workshops for newly built factories or small-scale operations that did not previously hold these licenses.
Why Some Suppliers Claim it’s “Banned”
If you are visiting a factory that was established within the last 24 months, or a smaller workshop that previously outsourced its finishing, they will likely tell you it’s “not allowed.” From their perspective, it isn’t—they cannot get the new permits required to build these facilities today.
Why In-House Coating Matters for Your Business
For a buyer, knowing whether your supplier has an in-house workshop isn’t just about legalities—it’s about quality and lead times:
Total Quality Control: We monitor every step of the powder coating process, ensuring the finish on your display racks is durable and consistent.
Faster Lead Times: By not relying on third-party coating plants, we avoid the “back-and-forth” logistics that often delay shipments.
Cost Stability: In-house operations protect our clients from the price fluctuations of external service providers.
Our Commitment to Green Manufacturing
Operating an in-house workshop in 2026 comes with great responsibility. We have invested heavily in VOC (Volatile Organic Compounds) treatment systems and waste management to ensure we meet and exceed national environmental standards. We believe that transparency about our “green” credentials is just as important as the quality of our steel.
Final Thoughts
The manufacturing world in China is evolving. While some doors are closing for new, less-regulated setups, established and compliant factories like ours continue to thrive and provide stable solutions for the global retail market.
Not sure if your current supplier is fully compliant? I am always happy to share my “front-line” insights, whether we end up collaborating or not. Feel free to reach out to me for a chat about the latest industry trends or for a tour of our Xiamen facility.
