In the face of the decline in foreign trade demand due to the COVID-19 pandemic, industrial enterprises in Lishui, East China's Zhejiang province, have not hesitated to invest in the research and development (R&D) of new technologies and products.

Data from the municipal science and technology bureau showed that from January to June this year, the city's industrial enterprises above designated scale – with an annual sales revenue surpassing 20 million yuan ($2.87 million) – invested 1.21 billion yuan in technological R&D, up 21.1 percent year-on-year. The growth rate ranks third in the province.

Since the COVID-19 outbreak, Zhejiang Benefit Pharmaceutical Co Ltd, which is based in Lishui Economic and Technological Development Zone, was among the earliest enterprises to resume production. It has been operating at full capacity to produce traditional Chinese medicine (TCM) granules and TCM decoction pieces. The output value in the first three months of this year exceeded that of last year.

Guo Lianping, deputy general manager of the enterprise, said that during this critical period, enterprises must have a sense of crisis and look to the long term, so the company increased R&D investment and plans to invest another 4 million yuan this year to develop new products.

According to officials from the science and technology bureau, in addition to a big increase in R&D expenses, investment in the city's high-tech industry also increased by 6.3 percent in the first half of the year.