SOURCE / COMPANIES
Chinese PPE suppliers ‘cautiously optimistic’ about exports to US
Large order comes from US after Biden’s moves on fighting COVID-19
Published: Jan 24, 2021 09:08 PM

People wearing face masks walk along the Fifth Avenue in New York, the United States, Jan. 5, 2021. (Photo by Michael Nagle/Xinhua)





Immediately after US President Joe Biden's pledge for a serious fight against the COVID-19 pandemic, Chinese medical suppliers - in particular mask producers - have seen soaring orders and inquiries from the US. 

While some painted a promising picture of an export market that could top billions of yuan, a majority of Chinese personal protective equipment (PPE) makers are only taking a "cautiously optimistic" attitude, industrial insiders said.

Aiming to end the pandemic, Biden signed executive orders on Thursday, the first full day he was in office, to harness the Defense Production Act to produce more vaccine supplies like needles, syringes and PPE, a move that won applause from experts, CNN reported on Sunday.

Forecasting the new administration's priority would be to fight the epidemic, many US traders and importers approached Chinese factories weeks in advance, asking about or placing orders of an unprecedented magnitude, in stark contrast with the chilly period during the Trump administration last year.

Li Lin, general manager of Anhui Fumei Medical Co, told the Global Times on Sunday that there have been some US clients approaching him, making inquiries on N95 masks in recent days.

Fumei produces masks and protective clothing, with exports totaling 900 million yuan ($138 million) last year. The firm's US clients include DuPont.

"The volume of inquiries is not very huge, as Biden just announced anti-epidemic measures after taking office. It may take some time for the industries to see a dramatic increase in exports to the US," Li said.

But he noted that the firm's main focus for 2021 will remain the European market, where he has maintained "good relationships with long-term clients and an environment that is more predictable." 

Li said that as qualified mask producers have all gained FDA certifications, there is no difficulty for Chinese firms like Fumei to scale up exports to the US, except that the company's production is fully scheduled until July.

However, some industry insiders expressed concern over whether US customs would "deliberately set barriers" that would delay the exports of Chinese PPE.

Cao Haoquan, president of Weini Technology Development based in Guangzhou, South China's Guangdong Province, one of the top 10 mask makers in China, told the Global Times on Sunday that the company has received an actual order from the US for 50 million masks, asking that they be delivered before the Spring Festival, a request that cannot be met.

"We cannot get adequate raw materials such as non-woven fabrics since many suppliers are now about to take a holiday," said Cao, noting that it will have to postpone the order until after the Chinese New Year.

An order of 50 million masks from the US is common these days compared with December last year, but Cao maintains a cautious attitude toward the US market.

"American traders tend to keep the price very low to be profitable, and there are risks that the goods cannot be cleared in time when they arrive in the US," said Cao.

In addition to masks, several large nucleic acid test kit suppliers in China also have some concerns, the Global Times learned.

A source at Maccura Biotechnology Co, a producer of nucleic acid test kits, told the Global Times on Sunday that although the company wanted to make a great contribution to US epidemic prevention, due to relevant factors, the US was not a priority for the time being.

"In terms of the use of nucleic acid reagents, they need to be used in combination with a supporting operating system. We also hope to do a good job in the service work during the whole process, strengthen the mutual trust of both sides, and solve related problems," said the source, noting that all this is based on the normal development of trade.

Another PPE supplier said that it is seeing soaring orders from US traders every day. Although the company is looking forward to entering the US market, the FDA application that it submitted in January is not expected to be approved until May.

After relentless trade friction between China and the US, many PPE producers have not made the US their primary market in a bid to avoid uncertainty, Chen Hongyan, secretary-general of the Medical Appliances Branch of the China Medical Pharmaceutical Material Association, told the Global Times on Sunday.

"Even though trade may have been eased these days, it still took some time for companies to apply for the needed export markings like the FDA," said Chen.