How Big Is The Industrial Impact Of The Epidemic? Li Yizhong, Former Minister Of The Ministry Of Industry And Commerce, Said So.

The impact of the new crown pneumonia epidemic on Chinese industry is unprecedented. With the improvement of the epidemic situation and the recovery of the economy, there are some positive changes in the industrial field. What is the impact of the epidemic on Chinese industry? What challenges will the industrial recovery face in the future and how to deal with it? China News Service reporter recently interviewed Li Yizhong, former Minister of Ministry of industry and information technology and President of China Federation of industrial economy.

Official figures show that in April, China's above scale industrial added value increased by 3.9% over the same period last year, from negative to positive. However, in 1-4 months, the figure was still 4.9% lower than the same period last year. In the same period, a number of indicators closely related to industry, such as consumption, investment, import and export, are still in a negative growth range.

Li Yizhong pointed out that this shows that the epidemic has hit the industry badly, and the demand and supply have both been impacted, and the impact is unprecedented. If the 2008 financial crisis is "roller coaster", then the impact on the economy and industry can be likened to "cliff fall".

Since the end of February, the resumption of labor and rehabilitation has achieved initial success. Li Yizhong pointed out that by the end of March, the average operating rate of Industrial Enterprises above designated size was 98.6%, and the rate of resumption of personnel was 89.9%. In April, almost all industrial enterprises resumed work and resumed production.

"This is of course good news, but it can not be blindly optimistic," Li Yizhong said. Statistics show that by the end of April, nearly 85% of enterprises with normal industrial production above half of normal production level had been regulated. 15% of the enterprises are less than half of the normal level.

Why is it impossible to work at full capacity after resuming work?

Li Yizhong pointed out that there are many factors: first, people must strictly implement normal prevention and control; two, the upstream and downstream of the industrial chain, raw materials, spare parts supply, manufacturing processes and product sales have not been completely opened up; three, logistics and transportation, especially through cross-border links across the province, there are still many difficulties. The four is capital, which is affected by the epidemic. The income of enterprises is reduced, the cost is increased, the liquidity is tight, and the investment ability is decreasing.

What challenges will China's industrial recovery face in the future?

Li Yizhong believes that these problems are gradually being resolved. The most important problem affecting the future industrial recovery is the unpredictable changes in domestic and foreign markets in the coming months and even next year.

The first is domestic demand. Some enterprises reflect that some customers who have already ordered the order have been released or delayed, the new orders have been reduced, and the demand has declined. Affected by the epidemic, it is very difficult for the economic entities to maintain normal income and there may be a decline in the income of some residents. Under this influence, unit consumption and household consumption may be more cautious.

The second is external demand. Overseas epidemic is still spreading. The impact of the epidemic on foreign economies is more serious and the recovery time will be longer. This leads to the cancellation of old orders abroad and the sharp reduction of new orders. Chinese enterprises have many key components, components and key materials, but also need to import large quantities. Some international supply chains may be interrupted. It also does not exclude the withdrawal of some foreign capital from the "return". All of these may pose challenges to Chinese industry.

The superposition of domestic and foreign circumstances will deepen the trauma of the economy, and demand and supply will be seriously affected. How to deal with it?

Li Yizhong said that there are three main ideas: first, expanding domestic demand is more urgent. We should start with encouraging consumption and expanding effective investment, and increase policy support to achieve effective results. Two, we should take effective measures to help enterprises, especially small and medium-sized enterprises, let them help themselves, overcome difficulties and maximize the protection of the basic economic market. Three is to seize the time, make up the short board, strong and weak items. Through innovation, technology development and effective investment, we can reduce import dependence on spare parts, components and key materials, and enhance China's ability of independent and automatic control.