Company threads its way to Middle East

"Some clothing companies from southern China can provide the same quality with lower prices as their logistics costs are less than those for companies in northern China," he said. This has "brought challenges to us, but we will continue to make efforts because the market is promising".

Ma Jun, a senior manager who is in charge of foreign marketing, said the company is considering opening stores in Sudan and Qatar.

Yang chose Wuzhong city, located in central Ningxia, for his business as it is one of the major settlements for Hui people in China. More than 55 percent of Wuzhong's population is Muslim, and many companies have located Muslim clothing businesses there.

Last November, Ningxia Hengfeng Group, a clothing company with an investment of 150 million yuan was established in Wuzhong, and is expected to provide 2,000 jobs when it begins production by the end of the year.

The company expects an annual production capacity of 5 million robes for Muslims, which it intends to export to Saudi Arabia, Turkey and the United Arab Emirates.

Gong Bo, the company's general manager, said the business should strengthen trading between China and Arab countries. The company expects to have monthly orders of at least $500,000 from the Middle East, Gong said.