SOURCE / ECONOMY
China’s successful handling of COVID-19, adequate industrial chains guarantee world supply amid pandemic
Published: Dec 22, 2020 03:13 PM

Employees of Masito work on production line in the company? workshop in Dongguan, South China's Guangdong Province on December 16. Photos: Cui Meng/GT



"These car models will be exported to the US, and products on that production line is exporting to Europe," John Ng, a factory manager of Maisto, a car model manufacture in Dongguan, South China's Guangdong Province, told the Global Times from the company's factory.

Inside the factory, workers are busy on production lines, everything looks normal as if it a global pandemic never happened.

Increased export

The sales of Maisto, which currently exports car models to more than 140 countries, has witnessed a more than 10 percent increase in 2020, despite the impact of the pandemic Ng said.

During a trip to Dongguan, the Global Times learned that, Maisto is not the only one company in this position. Many factories and companies in Dongguan, known as the world's factory, have seen an increase in exports.  

What is interesting is that, even though some component parts suppliers who are in the middle of global supply chains are affected by the pandemic with many of their clients in the downstream areas overseas having to suspend operations due to the pandemic, export of finished goods such as beddings that people still need have seen increase during the pandemic, local business representatives said.

What is behind of the phenomenon is that despite the operation suspension in many countries caused by the pandemic, people's demands in the world, especially daily goods, are still there, and China, with its successful handling of the pandemic and strong supply chain, has ensured the global supply amid the pandemic, they said.

Liu Fengzhen, an executive at De Rucci Healthy Sleep Co, a mattress maker based in Dongguan, told the Global Times that the company that also manufactures products for other overseas brands has seen obvious OEM orders increase this year as many clients could not finds factories in other countries.

"Many of the OEM orders are from Australia and Southeast Asian countries, because many local companies could not start production," Liu added.

Amid the pandemic, China is the only major power, predicted by the IMF, to record economic growth throughout 2020 with its successful handling of the pandemic. These businesspersons' comment also echoed by China's official export data.

According to Chinese Customs, China's exports have increased 3.7 percent in the first 11 months of 2020. And the export in November even saw a 21.1 percent increase year on year. Among the increase, plastic product exports increased 20.1 percent while furniture exports increased 11.2 percent.

The increased export figures reflect China's strengths - the successful handling of the pandemic, highly-developed supply chains which ensure factories can obtain sufficient raw materials and well-regulated labor market which offers business certainty s, local employers said.

John Ng, factory manager of Masito introduces a model in the company's exhibition room in Dongguan, South China's Guangdong Province on December 16. Photos: Cui Meng/GT



Guaranteed production
 

These advantages allow enterprise to conduct business operations and even expansion, the Global times learned.

According to Tony Ye, international operation director of IEF elevators Co, a listed elevator maker in Dongguan, China's successful handling of the pandemic has ensured their operation, and the company has seen a near 50 percent of sales increase year-on-year.

"We secured a 1000-elevator order from Saudi Arabia this year, which accounts for the major contribution to our growth," Ye said, adding that China's pandemic control played an important role during the negotiation.

Aside from handling the pandemic, strong supply chains mean the factory can easily access raw material, said Jason Bai, marketing director of IEF elevators Co.

"Based on our study, nearly 80 percent of global demand for elevators are in China, so almost every leading elevator maker in the world including Mitsubishi would choose to establish factories in China, which has facilitated the development of the country's elevator supply chain," Bai added. 

"Guangdong is one of China's two major elevator manufacturing bases, we can get almost every standard component within a single day," Bai said.

For many business representatives in Donguan who both have business in China and other countries, Chinese workers' industrious attitude and efficiency are also crucial factors that makes China's manufacturing sector so attractive.  

Compared  workers with other countries, Chinese workers are more willing to work longer to earn more money for their family, Cao Minglian, a cofounder of Funrest, a latex products manufacturer based in Donggyan, told the Global Times.
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