China moves to stabilize global supply. Industrial enterprises near full production resumption

17/03/2020

Over 90% of the major industrial enterprises in China, except for certain areas including Hubei, have already resumed work and production thanks to region-specific restoration measures

 

Meng Wei, a spokeswoman with the National Development and Reform Commission, told to media that clusters such as “Zhejiang, Jiangsu, Shanghai, Shandong, Guangxi, and Chongqing almost saw nearly 100% of their enterprises back on production”. Moreover, nearly all major foreign firms in provincial regions, have resumed production, said Li Xingqian, director of the foreign trade department under the Ministry of Commerce, on March 13.  A good news for supply chain too. The Chinese government and local companies are stepping up efforts to stabilize the global supply chain despite the impact brought by the novel coronavirus epidemic. Recently central authorities policies aimed at facilitating foreign trade are paying off as Chinese foreign trade companies speed up the recovery of their business operations.

“China will continue to work with its trade partners to ensure stability in the global industrial chain and supply chain, and encourage cooperation between Chinese firms and companies across the world”, Li added. For example, East China’s Shandong province is home to about 90 percent of South Korean-funded manufacturers of wire harnesses, which occupy an important position in the global automobile supply chain. The province has made great efforts to help these companies resume production.

Meanwhile, policies has also been taken to ensure smooth logistics operations. More than 90% of China-Europe freight trains have resumed operations, according to the National Development and Reform Commission on March 8. Over 1,000 subsidiaries of China COSCO Shipping Corporation have gone back to work since Feb. 10 to help maintain normal international trade. “We have received more overseas orders compared with last year,” said Jin Ming, head of the company.

“It’s growth in real terms, as we only arrange production after the orders are placed. In the first two months of this year, COSCO Shipping secured a transport volume of 190 million tons. The corporation’s data shows that imports and exports by Chinese companies, including Haier, Hisense and Midea, are underway. Carrying 20,000 containers, COSCO Shipping’s container vessel Aries sails into major European ports from Chinese ports every week, carrying exports of electronic products, clothes and furniture, among others, to Europe.

 

 

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