Foreign media reported on Monday (6th) that officials of the Ministry of Commerce of China indicated that the process of resuming production and resuming production of foreign-funded enterprises in China showed signs of acceleration.
As of March 30, 86.9% of key foreign-funded enterprises had 66.9% of their production capacity the recovery rate is over 70%, and only 14.5% of enterprises’ capacity recovery rate is less than 50%.
In terms of industries, the recovery of foreign-invested enterprises in the manufacturing industry is progressing faster, with a recovery rate of more than 70% of the production capacity reaching more than 70%; while in the service industry, about 60% of foreign-funded enterprises have achieved an average turnover of more than 70%.
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In addition, of the 241 major foreign-funded projects under construction, 238 have been resumed, and construction progress is accelerating.
The Ministry of Commerce of China pointed out that the magnetic effect created by China’s huge market scale has not changed due to the epidemic situation.
The comprehensive competition in terms of industrial support, human resources, and infrastructure has not lost its advantage.
According to a survey conducted by the American Chamber of Commerce in China on March 25, 40% of enterprises will expand their investment in China according to the original plan, which is an increase of 17 percentage points from February. This proves that when the epidemic stabilizes, foreign investment expectations in China have tended to Stability, investment confidence is accelerating recovery.
Since the outbreak in Wuhan, coastal provinces such as Jiangsu, Shandong, Guangdong, Shanghai, and Zhejiang have adopted various economic stabilization measures, and have achieved positive results at the level of “stabilizing foreign investment.”
The Ministry of Commerce of China points out that Jiangsu has established a three-level service coordination mechanism at the provincial, municipal, and county (district) levels to coordinate and promote the resumption of production and production of many international large factories such as Honeywell and LG Chem.
The Ministry of Commerce also mentioned that since the pneumonia epidemic, China has signed 118 projects with foreign investment, with an estimated total investment of US $ 14.36 billion, including the introduction of index projects such as Starbucks Kunshan Coffee Innovation Industrial Park.
In addition, Guangdong uses the connection mechanism between the governor and multinational companies to closely discuss key projects under construction with the German factory BASF, Exxon Mobil, CNOOC Shell Phase III, etc. to accelerate the construction progress.
However, the Ministry of Commerce of China also acknowledges that the Wuhan pneumonia epidemic has shown a trend of accelerating spread globally, which has caused a new negative impact on China’s attraction of foreign capital and the resumption of production by foreign-funded enterprises.
These impacts include:
- more restrictions on the departure or entry of foreign senior executives and technicians;
- the closure of ports in Europe and the United States and the suspension of routes;
- some high-level technical components and important materials required by foreign companies are facing a crisis of cooking;
- The decline in overseas demand and cancellation of orders or it may cause a new impact on the business development of the company.