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As Cai demonstrated his shoemaking craft at the new store, passersby, suitably impressed, placed nearly 25 orders on two afternoons. "Now we are also heading toward being more fashionable, in design and form," he said. "We have co-designed products with intellectual property such as comics."

As James recalls, his love of photography started at 8 or 9 through his father, who had an old box camera.

As China Daily tours the compound on a recent morning, Xue Meilan, a 37-year-old woman, is seen in another studio painting an old kerosene lamp. A Mao Zedong book and a match box also feature in her work that has a 3D effect. Since the right side of her body was paralyzed, Xue has relied on her left hand, even for painting.

Around 2010, the village started to acquire farmers' land to develop agricultural cooperatives that focus on growing cash crops such as oranges, bamboo shoots and dragon fruit.

As Leung explained, equipment manufacturing as well as research and development are included in the Made in China 2025 strategy. These companies usually invest heavily in their early days in machines, plants and all other related facilities. It will take a long time before they finally register sales and profits. With the new policy, the VAT can be retained, which means that companies can enjoy a tax rebate when they eventually report sales results. It can largely secure their cash flow and relieve this tax burden.