The sudden epidemic has affected many fields. Chinese manufacturing has also experienced a lot of fluctuations.
On the one hand, there are the “hard-core” operations of a large number of enterprises to quickly switch production and resume production, and on the other hand, there are It is difficult for companies to reach production and there is a risk of order delivery. As the epidemic spreads overseas, many export-oriented manufacturing companies are feeling pressure.
Is the “world’s factory” okay amid the epidemic? What’s the status of the order?
The digital printing machine is used for intelligent printing and dyeing, and the robots are connected in an orderly manner. In the factory building of Ningbo Shenzhou International Park, pieces of clothing are “ready to go”.
Shenzhou does OEM work for many well-known brands such as Nike and Adidas. It is the largest clothing processing and manufacturing enterprise in China. Since the outbreak of the epidemic, Shenzhou has resumed production in an orderly manner with its “hard-core” control capabilities across the entire supply chain from yarn, fabrics, accessories to garment manufacturing. Currently, production capacity has been fully restored, with the Ningbo factory producing 800,000 pieces of clothing per day. Ma Jianrong, chairman of the company, said there were no problems with order delivery and the number of orders received had not been reduced.
In the huge “camp” of Chinese manufacturing, some companies rely on their control over the supply chain to quickly reach production and resolve risks. There are also some industries and companies facing considerable pressure.
In December 2019, my country’s manufacturing new orders index was 51.2%; in January 2020, it was 51.4%; in February, this number dropped significantly. On the one hand, it is the delivery of early orders, and on the other hand, it is the assurance of new orders. Enterprises must resume work, and they must reach full production and reach production.
In the investigation, the reporter found that some leading manufacturing companies are at risk of order delays due to the closure of some foreign stores; domestic small and medium-sized enterprises, especially export-oriented small and medium-sized manufacturing companies, are more likely to Facing pressure from the supply chain.
Hubei is an important auto parts production and supply base in the world. The suspension of production in Hubei has put many vehicle companies under pressure. According to incomplete statistics, some car model production lines of many automobile companies have been affected.
“We have organized and sorted out more than 7,000 domestic small and medium-sized enterprises that are core supporting parts of the global industrial chain, combined with relevant local and departmental key services, made every effort to promote it, and are also actively looking for alternative suppliers. “The relevant person in charge of the Ministry of Industry and Information Technology said.
The resumption of production and work is being promoted in an orderly and vigorous manner. As all links in the industrial chain are gradually opened up, difficulties are gradually being resolved.
Public data shows that the average operating rate of industrial enterprises above designated size nationwide except Hubei is over 95%, and the operating rate of small and medium-sized enterprises is about 60%. As of March 12, with the exception of Hubei, 60% of the country’s key foreign-funded manufacturing enterprises have resumed production at a rate of over 70%.
“Since March, foreign-funded enterprises’ production and operations in China have gradually returned to normal, order completion is improving, and corporate confidence is recovering.” said Wu Hongliang, deputy director of the Foreign Investment Department of the National Development and Reform Commission.
Will it bring about industrial transfer?
Some foreign media reported that the epidemic has affected my country’s entire industrial chain. After the outbreak, some voices began to worry that companies would accelerate the relocation of factories overseas.
“The impact of the epidemic is mainly a temporary setback or delay in production. The production capacity of China’s manufacturing has not been damaged. We cannot simply draw conclusions based on the short-term transfer of individual orders.” Said the Ministry of Industry and Information Technology Luan Qun, director of the Institute of Policy and Regulation of the Di Research Institute, said.
It is undeniable that in recent years, some international brands and local manufacturing companies have chosen to build factories in Southeast Asia. This is a diversified layout considered by the companies themselves and cannot be simply understood as a transfer.
Experts believe that manufacturing is a system with multiple links criss-crossing it. The complexity of this system determines that it takes a long time to establish a supply chain in a country and region, and once established, it becomes sticky. The long-term foundation of China’s manufacturing will not be affected by short-term fluctuations.
One out of every four swimsuits sold in the world is produced in Xingcheng, Liaoning Province. Shaogang Town, Henan Province produces more than half of the world’s steel tape measures. Haining, the “Hometown of Leather”, “International Sock City” Datang… In China’s economic landscape, there are many seemingly “inconspicuous” manufacturing towns. As nodes in the supply chain system, they jointly support China’s manufacturing.
China is an important part of the global production system and the center of many global supply chains. It may be easy to move a factory away, but it is not easy to move an ecosystem away.
Many leaders of large manufacturing companies said that there is still a big gap between Southeast Asia and China in terms of supply chain support and production synergy and efficiency. Although the epidemic will have an impact, other countries and regions will not have the ability to undertake the manufacturing ecology.
In addition, China is also the largest consumer of many commodities. If the market demand is there, it will breed more vitality.
What revelations does the epidemic bring?
An epidemic is like a big exam. After experiencing pressure and challenges, Made in China is also reflecting.
Supply chain security is crucial. As the international division of labor continues to deepen and the global supply chain system continues to expand, whether the supply chain is in a dominant position is an important indicator of a country’s competitiveness.
Since the outbreak, many domestic clothing, electronics, and automobile companies have been able to quickly switch to mask production, relying on a stable and flexible supply chain. To better cope with risks and challenges and seize opportunities in the future, a strong supply chain is also needed.
“We took the lead in setting up a working group for the coordinated resumption of production of the industrial chain to ensure the stable resumption of production of the supply chain.” said Xin Guobin, Vice Minister of the Ministry of Industry and Information Technology.
The reporter learned from the Ministry of Industry and Information Technology that the Ministry of Industry and Information Technology is formulating corresponding policies from the perspective of improving supply chain security and industrial security, focusing on ensuring the supply of important raw materials, parts and major equipment, and promoting collaboration develop and maintain the security and stability of the global supply chain.
Digital transformation is urgent. “The epidemic will ‘force’ some companies to increase their risk awareness and pay more attention to internal skills.” Yang Yuanqing, chairman and CEO of Lenovo Group, said that we should establish scientific decision-making mechanisms and processes, increase the informatization and digitalization of corporate operations, and firmly follow the route of intelligent manufacturing. It’s the only choice.
Recently, the term “new infrastructure construction” has appeared frequently in a series of policies issued by the central government, relevant departments, and local governments to restore economic development. The Ministry of Industry and Information Technology issued a notice on promoting the accelerated development of 5G to speed up the construction of 5G networks and cultivate a new ecosystem.
A series of initiatives aimed at focusing on the front end of science and technology and building a solid digital foundation. The purpose is to provide new momentum for high-quality development through digitalization.
Manufacturing is closely related to consumption, finance and other aspects. To ensure the stable development of the manufacturing industry, all aspects of the economy and society must also coordinate.
While increasing “new infrastructure”, 23 departments including the National Development and Reform Commission recently jointly issued the “Implementation Opinions on Promoting Consumption Expansion and Quality Improvement to Accelerate the Formation of a Strong Domestic Market”. In particular, it is proposed to build a “smart” consumption ecosystem and promote the dual upgrading of industry and consumption.
“Only by building a solid foundation, smoothing circulation, and strengthening integration can Made in China inject more power.” said Xin Yongfei, director of the Institute of Policy and Economics of the China Academy of Information and Communications Technology. </p
