China readies for supplying the world
China’s weeklong Spring Festival holidays are less than one month away. At this time last year, the coronavirus outbreak swept parts of the world’s second- largest economy, grounding production with a shutdown rate nearing 90 percent. But now, the world’s factory is roaring back, with 90 percent the rate at which production operates.
China’s industrial machines are primed to meet soaring overseas demand, even for the upcoming Spring Festival holidays, during which factories traditionally shut down for a couple of weeks and exports waned.
This year, as the sporadic resurgence of coronavirus infection cases prompts more workers not to return to their hometowns and labor shortages are eased, the world will likely see Chinese factories heat up production, shipping everything from stay- at- home products, electronic components, toys and vaccines, to medical gear such as facial masks, which China had produced 40 units for every person around the world in 2020.
No other country could rival China in the global supply chain and the silver lining it has provided to the world’s anti- epidemic effort.
Humming factories
At a toy- making factory in Dongguan, South China’s Guangdong Province, more than 100 migrant workers have decided to stay in the city during the upcoming Spring Festival holidays, traditionally a time for people to go home for family reunions.
The factory, which employs about 800 workers, most of whom are not locals, issued a new policy on Monday, giving migrant workers who would stay 1,000 yuan to 2,000 yuan, in addition to overtime pay.
The policy echoes calls from a number of local governments in recent days, including firsttier cities like Beijing and Shanghai as well as manufacturing bases like Dongguan and adjacent Foshan, to encourage employees to stay to reduce mobility against the backdrop of reported sporadic coronavirus cases.
For instance, Foshan said it will release consumption coupons worth millions of yuan and free entrance to all local top- level tourism spots as stay- in- Foshan benefits.
East China’s Yiwu, also known as the world’s supermarket, said it will organize different New Year events, such as making dumplings or New Year parties for those who choose to stay. The city also set up volunteer teams and Chinese and English hotlines for foreigners who need help during the weeklong holidays.
“In the past, operations at the factory were suspended for more than two weeks during the Spring Festival break. And we generally face a labor shortage issue afterward. But as more workers stay this year, we’re able to resume production very quickly after the holidays,” said Zhai Suoling, the toy- making factory’s manager.
Zhai’s company has received “overwhelming” orders from the US and Europe, and, so far, production has been booked until July.
“If we secure enough workers, we could shore up production and complete orders ahead of time, which bodes well for our profit margin that saw a 15 percent contraction last year,” Zhai said.
Manufacturers across China – from the southern manufacturing base of Guangdong to the east coastal region like Jiangsu – have painted a bustling and hustling picture in stark contrast to last year’s.
Stable supply during holidays
While the global supply chain has been thrown into chaos amid the pandemic, China is an exception. Its daily necessities and material supplies – which are underpinned by a complete industrial chain at home – have played a pivotal role in stabilizing the global price.
“Without Chinese supplies, the world would face an unprecedented inflation that could lead to social unrest and political upheaval,” said Tian Yun, vice director of the Beijing Economic Operation Association. He noted that China has helped bring down the global CPI by about 1 to 2 percentage points.
Production lines at vaccine- producer Sinovac Biotech’s factories are now running at 24/ 7, the Global Times learned. The company has been expanding production to increase annual production to 600 million doses. Its inactivated coronavirus vaccines have been exported to quite a number of countries.
Health Box, a domestic supplier of KN95 and N95 masks, saw its orders “increasing substantially” so far this year. The company offers a high protection level and can be used up to 60 times.
In 2020, China’s medical exports provided a ray of hope for the world plagued by the coronavirus and such export strength is poised to continue as the world battles a new wave of outbreaks, industry observers said.