How long will China’s economy take to recover after the corona virus epidemic?

Despite the complicated outbreak of corona virus, the Chinese government urged businesses to resume operations to rescue the crippling economy.

According to the South China Morning Post , curbing the corona virus epidemic (Covid-19) is still the top priority of the Chinese government at this time. However, Beijing has also sent a clear message to local governments. That “overreacting” to the epidemic will kill economic prospects.

But factories, construction sites or office buildings cannot resume operations overnight. Because China’s economic centers – including the Yangtze River Delta, the Pearl River Delta and major cities like Beijing or Shanghai – will face the risk of disease spreading as the influx of farm workers The village was massively back.

Companies producing medical equipment (including masks) and delivery services were the first group of businesses to operate again at the behest of local governments. Factories and manufacturers employ only local labor and follow strict quarantine measures as the next group.

The factory began to resume production

For example, in Hangzhou, workers were only allowed to return to work on the condition that they had been in the city for the previous 14 days , were in good health, had never been to an epidemic area since the beginning of the year, had no contact with patient or suspected coronary virus infection .

Companies must provide full masks for employees, averagely 2 workers a day, although the Chinese market is in a shortage of masks .

SCMP quoted Linda Chen, an employee of a company in Ningbo (Zhejiang Province), saying: “Only about 5% of the businesses have turnover of more than 20 million yuan ( 2.8 million USD ) / year. This activity in Ningbo has resumed operations . Our company was reopened , but only 20% of the workers went to work and most were local workers . ”

Lisa Li – the director of a jacket-making business – said her company did not provide enough masks for employees. “We can only arrange for 200 citizens to work on the factory’s production line in Guangdong,” Ms. Li lamented.

“The government requires each business to provide employees with 2 masks per day and have enough stockpile for 10 consecutive days. Thus, the company must have at least 4,000 masks in stock every day. Need more masks if you want more workers back to work “.

With the major maker of China – the core component in the supply chain – for applying for work again easier . Tesla’s Shanghai factory resumed production on February 11.

Foxconn, meanwhile, had a license to restart part of the assembly, though many rural workers were still absent. Volkswagen has also reopened six factories in China and another eight will go into operation next week.

Still have to wait

Meanwhile, small-scale, labor-intensive factories, especially rural immigrants, will have to wait longer. “Very few footwear companies with several hundred workers in Dongguan are allowed to resume operations,” said SCMP , quoted by Wang Jie, owner of a company in Dongguan.

Other manufacturers do not have enough financial resources to buy enough masks for workers or arrange quarantined spaces according to government regulations.

“It is unfair for the local authorities to hold small production facilities fully responsible for infected workers ,” Wang said. He said that just one case of infection would be disastrous for the entire production facility.

Cheng Chi-hung, owner of a helmet manufacturing company in Dongguan, said many businesses need end-of-life manufacturers to resume production.

“We only have enough raw materials for 15 to 30 days of operation while 50% of the workers are ready to work . If suppliers do not resume operations before March 1, we cannot restore production, ”said businessman Cheng.

Even factories that have welcomed workers’ return after the long Tet holiday will take a long time to return to normal operation.

“The company has resumed production, but my workers now only sterilize the factory because most of the suppliers are still in a state of paralysis,” said Xie Jun, owner of a furniture export company in Yangtze Delta, sad.

Ms. Channey Zhen, director of a high-tech ceramic wares maker in Chaozhou (Guangdong), also said the company was back in operation on February 10, but it was still in trouble .

“The entire manufacturing industry in China is closely connected. If only one supplier is paralyzed, the entire production chain will be in trouble,” Zhen said.

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