Agricultural collectivization in the 1950s: Transition from family workshops to mutual aid groups and centralized production by cooperatives; in 1945, Heji and Jiujian paper mills were established in Xiakongzhai, later merged into a cooperative paper factory; after the commune system in 1958, production was accounted for by production teams.
Post-1978: Household-based paper production revived. Xia Kongzhai's paper income reached 135,400 yuan in 1978, accounting for 40% of the village's total income.
Post-1990s: Impacted by industrial paper mills, traditional workshops declined, with reduced output and workforce, threatening the craft's continuity.
June 2009: Yangcheng cotton paper craftsmanship was included in Shanxi Province's second batch of provincial-level intangible cultural heritage listings, advancing its protection and transmission.
Preservation and Revitalization: The government established training centers, organized exhibitions, and provided subsidies to cultivate inheritors. Some workshops resumed production, expanding applications through cultural creativity, calligraphy/painting, and restoration fields—such as ancient book restoration, high-end art packaging, and gift wrapping.
Current Status: The core production areas of Xiakong Village and Xiaozhuang Village preserve traditional techniques. Through experiential learning programs and e-commerce promotion, they have enhanced their influence, becoming cultural landmarks of Yangcheng.