Chinese companies stabilize global supply chain amid epidemic

Added On March 7, 2020

Companies in China's manufacturing heartland Guangdong province are making all-out efforts to stabilize supply chain to meet global demand amid the novel coronavirus outbreak. Economy report has the story. As one of the world's largest suppliers of household appliances, Xinbao, headquartered in Guangdong's Foshan city, has occupied a 10 percent share in the global market, with its main product coffee machine hitting a 40 percent share. SOUNDBITE(CHINESE): ZENG ZHANHUI, Chairman of Xinbao Electrical Appliances Co., Ltd "Customers' orders can't wait, Walmart for instance, it will open with empty shelves if we stop supplying." Due to the outbreak of the novel coronavirus this year, millions of Chinese workers returning to their hometowns have had to extend their weeklong Spring Festival holiday. After taking a series of measures, Xinbao retrieved more than 70 percent of workers and resumed operation, ensuring more than half of their orders be delivered on time. Xinbao is just an epitome of China's move to deal with severe challenges posed by the deadly virus and maintain the stability of the global supply chain. Galanz, another Foshan-based company, a major microwave producer, has promised to never delay or call off deliveries amid the epidemic. To honor its promise, the company resumed production on Feb. 10 after taking a series of unprecedented strict prevention measures including temperature checks at least twice a day and making sure employees wash their hands six times a day. According to the chairman, to further deal with the shortage of line workers, the company has mobilized more than 160 managerial staff to work on the production line. SOUNDBITE (CHINESE): LIANG ZHAOXIAN, Chairman of Galanz Group Co., Ltd. "First, it is very important for us to take responsibility for our long-term cooperation. Second, to help build our partners' confidence amid epidemic." Apart from being honest and efficient, Chinese companies have also been highly flexible and adaptive when facing the crisis. Foshan-based Guangdong Sunwill company, a plastic air-conditioner van producer, exports about 30 million sets of vans per year, accounting for one-third of the global share. After the suspension of its branch company in Wuhan, the epicenter of the virus, the company has relocated production materials and accessories to other offices to ensure production and delivery. The chief of the company said instead of increasing the ex-factory price due to the epidemic, they finished deliveries without considering the loss. They even received more global orders this year. She added that the virus is not just a threat or a crisis, but also a test to China's supply chain and Chinese companies' ability to survive the risk.