Shen Jianshan, president of Camda New Energy Equipment Co Ltd, said boosted investment in innovation and technology research had helped the company better tap the international market despite lower global demand.

Aftermath of Dongguan sex raid

Dongguan 'remains processing trade hub'

The Dongguan-based company has gone from just manufacturing diesel-powered generation equipment to making alternative-fuel products, after introducing high-level foreign technology.

"We are confident about growth because there is strong demand overseas for energy-saving and eco-friendly products," said Shen, adding the company's products are available in more than 50 countries and regions.

Shen said the crackdown on underground prostitution would help clean up the business and investment environment.

"It is not a good time to assess the effects brought about by the crackdown on prostitution on the local economy. But it will definitely help the local government build a good image for business and investment," said Shen.

A healthy business and investment environment will also help the local authority to accelerate economic restructuring, according to Shen.

"More private investment should go into the innovation and information technology sectors, rather than the hotel and entertainment industry. The city needs more funds in the IT industry to change its economic growth path," Shen said.

The huge flow of migrants to the city, along with the rapid development of the manufacturing industry, has helped boost the development of the hotel business in the city over the past two decades.Up to 90 percent of the hotels were developed using local investment, according to the local tourism authority.

Since the first five-star hotel was built in 1996 in Dongguan, local private investment amounting to 25 billion yuan has poured into the hotel sector, according to the tourism authority.

"Dongguan needs to develop the hotel business as a supplement to its rapid manufacturing development in the past. But now it has exceeded demand. More local investment should be put into innovation and IT projects," Shen said.

Xinhua contributed to this story.

Life during the fishing off-season in Dongguan	Innovation is the name of the game