The safety incident in Liuyang, China, on May 4, 2026, was followed by a comprehensive production suspension and safety rectification program across the city’s fireworks industry.
For China’s fireworks sector, this is more than a local industrial adjustment. It has become an issue with direct implications for the global fireworks supply chain.
For decades, international markets have relied heavily on Chinese manufacturers for consumer fireworks, festival fireworks, and professional display products. Liuyang, widely recognized as one of the world’s largest fireworks production and export centers, plays a particularly important role in this supply network.
When production in Liuyang was suspended, the impact was quickly felt in overseas markets. Delayed orders, revised production schedules, extended lead times, and the search for alternative suppliers became major concerns for international buyers during the second half of 2026.
For fireworks importers, however, the key question is no longer simply:
“Will Liuyang resume production?”
The more important question is:
“Once production resumes in September, will Liuyang have enough stable and compliant capacity to meet global demand for 2027?”
The answer depends on three closely connected factors: production recovery, safety regulation, and supply-chain diversification.
1. A September restart does not mean an immediate return to full production
According to the recently released List of Liuyang Fireworks and Firecrackers Enterprises Proposed to Resume Production on September 1, Liuyang is moving toward a phased production restart for companies that meet the required safety conditions.
This is important because “resumption of production” should not be interpreted as every factory simply reopening and returning to its previous operating capacity.
A more accurate description is a phased recovery of production capacity following safety upgrades, design reviews, inspections, and regulatory approval.
According to the published information, 22 fireworks-producing towns and subdistricts have submitted a total of 54 proposed production enterprises, including:
- 46 enterprises operating under the “one license, one factory” model;
- 8 independent production areas;
- 24 enterprises that have received design approval from the Hunan provincial authorities, completed the required upgrades in accordance with GB 50161-2022, and passed inspection;
- 16 enterprises whose designs are still awaiting review and approval;
- Other enterprises that remain under rectification or are waiting for final inspection.
For overseas buyers, the distinction is important.
September 1 should be viewed as the beginning of a phased production recovery—not as an immediate return of Liuyang’s entire fireworks industry to its pre-incident capacity.
This means that Liuyang’s export capacity will need time to recover.
In the short term, some manufacturers may continue to face limited production slots, tight production schedules, and pressure from delayed orders.
For importers already planning their 2027 purchasing programs, this recovery timeline deserves close attention.
2. Overseas buyers are right to diversify—but diversification does not necessarily mean leaving Liuyang
Over the past several months, some European and American buyers have begun exploring alternative sources, including:
- Wanzai and Shangli in Jiangxi Province, China;
- Other established Chinese fireworks-producing regions;
- Selected production bases in Southeast Asia;
- Mexico、Brazil and other overseas markets.
From a procurement perspective, this response is understandable.
No international buyer wants to be excessively dependent on a single production region. Supply-chain diversification is a reasonable strategy for reducing operational risk.
However, diversification should not be confused with complete replacement.
Fireworks manufacturing is fundamentally different from many conventional manufacturing industries. A mature fireworks product depends on far more than factory space and labor.
The underlying supply chain includes:
- Product formulation and effects development;
- Pyrotechnic effect manufacturing expertise;
- Raw-material supply;
- Safety management systems;
- Skilled technical personnel;
- Product testing and quality-control experience;
- Long-term manufacturing know-how;
- Export compliance and certification capabilities.
These capabilities take years to develop.
A factory may have sufficient labor and production facilities, but that does not automatically mean it can reproduce the same product range, quality consistency, production volume, and delivery reliability as an established fireworks manufacturing center.
For this reason, the more likely outcome is supply-chain diversification rather than the wholesale replacement of Liuyang.
3. Southeast Asia can become an important supplement, but replacing Liuyang will take time
Vietnam, Thailand, India, and other emerging production markets have attracted increasing attention from international fireworks buyers in recent years.
These markets can offer certain advantages, including lower labor costs and, in some cases, more flexible trade conditions.
However, labor costs are only one part of the fireworks manufacturing equation.
Some emerging production bases in Southeast Asia still rely, to varying degrees, on Chinese suppliers and expertise for raw materials, technical know-how, production experience, and other parts of the supply chain.
China’s established fireworks industry also retains significant advantages in areas such as:
- Large combination fireworks;
- Higher-end consumer fireworks;
- More complex pyrotechnic effects;
- Product development and innovation;
- Large-scale export production.
As a result, a more realistic long-term scenario may be gradual diversification rather than immediate replacement.
Some lower-cost and high-volume products may increasingly be sourced from multiple production regions, while technically demanding, complex, and higher-value products are likely to continue relying heavily on established Chinese manufacturing capabilities.
For European and American importers, developing qualified suppliers in Southeast Asia as a secondary source or supply-chain backup can be a sensible strategy.
However, completely replacing Liuyang in the short term remains difficult from an industrial-capacity perspective.
4. Other Chinese production regions can absorb some orders—but the broader regulatory trend also matters
Following the production suspension in Liuyang, some orders have shifted toward other Chinese fireworks-producing regions, particularly in Jiangxi, Beihai, Guizhou.
In the short term, this can help international buyers reduce supply pressure and create additional sourcing options.
However, there is another important factor that overseas buyers should consider:
China’s fireworks industry as a whole is moving toward stricter safety regulation.
The safety upgrades, engineering design reviews, facility improvements, and inspection procedures currently being implemented in Liuyang should not necessarily be viewed as a Liuyang-specific phenomenon.
As safety standards continue to evolve, other major fireworks-producing regions in China may also face increasingly rigorous production and safety requirements.
Therefore, simply moving an order from Liuyang to another Chinese production area does not automatically eliminate regulatory or supply-chain risk.
A truly resilient supply chain is not one that searches for the area with the least regulation.
It is one that identifies manufacturers with:
- Strong safety compliance;
- Stable production capacity;
- Experienced technical teams;
- Consistent product quality;
- Reliable raw-material supply;
- Proven export experience;
- International compliance capabilities;
- The ability to deliver consistently over the long term.
5. What does this mean for international fireworks importers planning for 2027?
The events of 2026 may change the way international buyers evaluate fireworks suppliers.
In the past, procurement decisions were often driven primarily by price, product quality, lead time, and service.
Going forward, supply-chain resilience may become an equally important consideration.
For 2027 purchasing programs, buyers should look beyond the question:
“What is the factory’s price?”
They should also ask:
- Has the factory resumed stable production?
- Does it have sufficient production capacity for the required volume?
- Has the required safety rectification been completed and approved?
- Can the supplier provide a reliable production schedule?
- Is its raw-material supply stable?
- Does it have sufficient export experience?
- Can it meet the regulatory and certification requirements of the target market?
- Is there a qualified second source if the primary supplier encounters another disruption?
This represents a broader shift in procurement strategy—from price-driven sourcing toward supply-chain reliability and risk management.
6. The bottom line: Don’t simply wait—and don’t simply walk away
For international fireworks importers, the planned September production restart in Liuyang is certainly a positive development.
But it should not be interpreted as a signal that the supply chain will immediately return to normal.
A full recovery will take time.
At the same time, the growing interest in Jiangxi, Southeast Asia, and other production regions does not necessarily mean that Liuyang will lose its position as a major global fireworks manufacturing and export center.
A more likely outcome is the development of a more diversified global fireworks supply chain.
Liuyang is likely to remain a core source of production capacity, while other Chinese regions provide additional capacity and selected overseas markets gradually become supplementary sources.
For 2027 procurement, the most practical strategy may therefore be neither:
“Continue relying entirely on Liuyang,”
nor:
“Leave the Chinese supply chain completely.”
Instead, international buyers may benefit from building a multi-supplier sourcing strategy—maintaining relationships with established suppliers while developing and qualifying additional sources in other regions.
For buyers who prioritize long-term supply reliability, the most competitive fireworks supplier may not necessarily be the factory offering the lowest price.
It may be the manufacturer that can consistently deliver on the four factors that matter most:
Safety. Quality. Capacity. Reliability.
The events of 2026 have highlighted an important reality for the global fireworks industry:
The competitive advantage of a fireworks supplier is increasingly moving beyond simply having the ability to produce. It is becoming the ability to produce safely, consistently, compliantly, and sustainably over the long term.