How one city in China became the fireworks factory of the world

Diwali fireworks will illuminate the Indian night sky tonight, likely originating from Sivakasi, a major production hub in Tamil Nadu. However, globally, China's Liuyang city stands as the leading exporter of fireworks. Liuyang's firework industry can trace its roots back to the Tang Dynasty (618 to 907 CE) and has thrived for centuries due to a combination of factors.

Initially, fireworks production in Liuyang was a perilous cottage industry, with families manually mixing gunpowder and filling shells, leading to safety risks and environmental pollution. The modern communist state, established in 1949, did not inherit the advantages of this legacy; rather, the industry experienced a revival after U.S. President Richard Nixon's 1972 visit to China.

Proximity to trade hubs, a large labor pool, lax regulations, and low production costs contributed to Liuyang's dominance in the global fireworks market, accounting for 60% of China's domestic market and 70% of its exports. The Lunar New Year and National Day celebrations fuel domestic demand, with Liuyang's Sky Theater hosting numerous firework displays, attracting over 7 million visitors since 2023.

However, recent safety and pollution concerns have prompted stricter regulations, including AI-enabled surveillance systems and the separation of dangerous chemical handling from human operations. Despite these efforts, new, less-polluting formulas have faced criticism and resistance from citizens who enjoy traditional firework displays during festivals.