Made In China Under The Epidemic: Is "World Factory" OK?

The sudden outbreak has affected many areas. Manufacturing in China has also experienced many fluctuations.

On the one hand, a large number of enterprises are rapidly switching production, resuming work and resuming production. The "hard core" operation is also difficult for some enterprises to reach production, and there is a risk of order delivery. With the spread of overseas epidemic, many export oriented manufacturing enterprises are under pressure.

Is the world factory okay under the epidemic?

How about the order?

Digital printing machine intelligent printing and dyeing, manipulator orderly convergence...... Inside the factory of Shenzhou International Park in Ningbo, one piece of clothing is "ready to go".

Shenzhou is the largest garment manufacturer in China. It is a foundry for many famous brands such as Nike and Adidas. Since the outbreak of the disease, with the ability to control the "hard core" of the whole supply chain from yarn, fabric and accessories to the whole supply chain of Shenzhou, the production capacity of Shenzhou has been fully restored, and the daily output of the Ningbo plant has reached 800 thousand. Ma Jianrong, chairman of the company, said there was no problem in the delivery of orders, and there was no reduction in orders.

In China's huge "camps", some enterprises rely on the control power of the supply chain to reach production quickly and defuse risks. There are also some industries and enterprises that are facing great pressure.

In December 2019, the new order index of manufacturing industry in China was 51.2%; in January 2020, it was 51.4%; in February, this figure dropped significantly. On the one hand is the delivery of the previous orders, on the one hand is the assurance of the new orders, the enterprises need to return to work, but also the full production and the production.

In the survey, reporters found that some leading manufacturing enterprises were affected by the closure of some foreign stores, and the risk of orders was delayed. Domestic SMEs, especially small and medium-sized manufacturing enterprises, faced more pressure from the supply chain.

Hubei is an important auto parts production and supply base in the world. Hubei stopped working for a long time, which made many vehicle manufacturers feel pressure. According to incomplete statistics, a number of automobile production lines have been affected.

"Our organization has combed the core supporting small and medium enterprises of more than 7000 global industrial chains, and has been promoting the joint service of relevant local and departmental services, and is actively looking for alternative suppliers." The head of the Ministry said.

The resumption of production is resumed in an orderly and effective way, and difficulties are being solved step by step with all links in the industrial chain.

According to public data, the average operating rate of industrial enterprises is over 95%, and the operating rate of SMEs is about 60%. As of March 12th, except for the north of the lake, more than 70% of the 60% key manufacturing enterprises in China were producing more than 50% of their output.

"Since March, the production and operation of foreign-funded enterprises in China has been gradually normal, and the completion of orders is improving, and the confidence of enterprises is recovering." Wu Hongliang, deputy director of the foreign investment division of the national development and Reform Commission, said.

Will it bring about industrial transfer?

Foreign media reported that the epidemic had an impact on China's whole industrial chain. After the outbreak, there are voices beginning to worry that enterprises will accelerate the relocation of factories overseas.

"The impact of the epidemic is mainly temporary setbacks or delays in production, and China's manufacturing capacity has not been damaged. We can not simply draw conclusions about the transfer of individual orders in short time. Luan group, director of the Institute of policy and law, Sai Di Research Institute, Ministry of industry and commerce.

It is undeniable that in recent years, some international brands and local manufacturing enterprises have chosen to build factories in Southeast Asia. This is a diversified layout of enterprises from their own considerations, and can not be simply interpreted as a transfer.

Experts believe that the manufacturing industry is a system with multiple links crisscrossing. The complexity of this system determines that it will take a long time to establish a supply chain in a country and region, and once established, it will be sticky. The foundation of China's long-term accumulation will not be affected by short-term fluctuations.

There are 1 pieces of swimsuit sold in the world every 4 swimmwear from Xingcheng, Liaoning, and Henan has produced more than half of the world's steel tape, "leather town" Haining, "international socks" Datang... In China's economic map, there are many seemingly unremarkable small manufacturing cities, which act as a node in the supply chain system to support China's manufacturing.

China is an important part of the global production system, and is also the center of many global supply chains. It may not be difficult to turn a factory around, but turning the ecosystem away is no easy task.

A large number of large manufacturing enterprises responsible for each person said that there is still a big gap between Southeast Asia and China in terms of supply chain matching and production synergy and efficiency. Although the epidemic will have an impact, other countries and regions will not have the ability to undertake manufacturing ecology.

In addition, China is also the largest consumer of many commodities, and the demand of the market will generate more vitality.

What are the implications of the epidemic?

An epidemic is like a big exam. Under pressure and challenges, China's manufacturing is also reflecting.

The safety of supply chain is very important. With the deepening of the international division of labor and the expansion of the global supply chain system, whether the supply chain can be in an advantageous position is an important index to measure the competitiveness of a country.

Since the outbreak of the epidemic, many domestic clothing, electronics and automobile enterprises have been able to switch their masks quickly, relying on a stable and flexible supply chain. In the future, it is better to deal with risks and challenges, seize opportunities, and also need strong supply chains.

"We take the lead in setting up an industrial chain collaboration and resumption of production working group to ensure the stable supply of the supply chain." Xin Guobin, Vice Minister of the Ministry of industry and commerce, said.

The reporter learned from the Ministry of industry and information that the Ministry of industry and commerce is formulating corresponding policies from the perspective of improving supply chain safety and industrial safety, focusing on safeguarding the supply of important raw materials, components and major equipment, promoting coordinated development and safeguarding the safety and stability of the global supply chain.

Digital transformation is imminent. "The epidemic will" force "some enterprises to enhance their risk awareness and pay more attention to practicing internal strength. Yang Yuanqing, chairman and CEO of Lenovo Group, said that establishing a scientific decision-making mechanism and process, increasing the information and digitalization of enterprise operation, and firmly taking the route of intelligent manufacturing is the only choice.

In recent years, the central government and relevant departments and local governments have made frequent use of the phrase "new infrastructure" in a series of policies to restore economic development. The Ministry of industry and information issued a notice on accelerating the development of 5G, speeding up the construction of 5G network and cultivating a new ecosystem.

A series of initiatives aimed at the front-end of science and technology and building a digital foundation are aimed at providing new energy for the development of high quality through digitalization.

Manufacturing and consumption, finance and other links are closely related. To ensure the stable development of the manufacturing industry, all links in the economic and social sectors should also be coordinated.

At the same time, the 23 departments such as the national development and Reform Commission recently issued joint opinions on the promotion of consumption expansion and upgrading to form a strong domestic market.

"Build a solid foundation, smooth circulation and strengthen integration, so that Chinese manufacturers can inject more power." Xin Yongfei, director of the policy and Economic Research Institute of China information and Communication Research Institute, said.