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China's supply chain has obvious advantages

by:VIPUTRANS     2020-07-25
   At present, various industries in China have basically resumed work and production, people's lives have gradually returned to normal, and the market has gradually shown a recovery trend. In response, He Xiaoqing, global partner of Kearney, a global well-known consulting firm and president of Greater China, said in an interview with a reporter from Economic Daily that “the ability of countries in the world in terms of international cooperation and social cohesion will largely determine the future”.

   'During the epidemic, the Chinese government and people made every effort to fight the epidemic and adopted a series of effective measures, which not only provided reference for other countries, but also brought a positive impact on China's economic development in the second half of the year.' He Xiaoqing said.

  Data shows that my country's economy in April continued the recovery momentum since March, and the main indicators showed positive changes. The government has issued a series of related policies to stabilize the market and stabilize expectations. He Xiaoqing believes that compared with the 2008 international financial crisis, the proportion of consumption in China's GDP has increased significantly. Consumption promotion policies can quickly restore national consumption capacity and restore economic vitality.

   He Xiaoqing believes that the acceleration of China’s “new infrastructure” including 5G will boost industrial upgrading, drive entrepreneurship and employment, and inject new momentum into the Chinese economy. 'The government actively supports small and medium-sized enterprises, the service industry, and actively supports foreign trade enterprises. These measures are effective and can help enterprises accelerate transformation and strengthen risk prevention capabilities.'

   Since the outbreak of the new crown pneumonia, various parts of China have actively taken strong measures to help foreign companies in China resume work and production safely. For foreign companies, China is not only an important consumer market, but also an important production base and R&D base. The resumption of work one day earlier in factories and institutions of foreign companies in China will greatly support the stability of the global supply chain.

   'We have seen that the Chinese government has made a lot of efforts in attracting and retaining foreign companies in China, which shows China's determination and responsibility to continue to play a key role in the global supply chain system.' He Xiaoqing said.

   'In the final analysis, which country and region a foreign company chooses to develop in is determined by the market and supply chain.' He Xiaoqing said that 30 years ago, foreign manufacturers began to produce and purchase in China and only one factor was considered-cost. Trade frictions have prompted foreign companies to consider the second factor-risk. After the outbreak of the epidemic, foreign-funded companies have added a new consideration-supply chain resilience. 'This is the most important consideration.'

'The outbreak of the new crown pneumonia epidemic has caused many countries and regions to stagnate social and economic activities. China took the lead in controlling the epidemic, various industries have resumed work and production, and the consumer market has gradually recovered vitality. This has brought hope and confidence to the restart of the economy in the European and American markets. 'He Xiaoqing said: 'China's strength in fighting the epidemic and recovering the economy has made European and American companies clearly aware of China's supply chain advantages.'
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