China’s vital position in global supply and industrial chains will not be altered by the impact of the novel coronavirus epidemic, commerce officials said.
At present, there is no large-scale transfer of supply and industrial chains to foreign countries due to the outbreak, said Zong Changqing, director-general of the department of foreign investment administration under the Ministry of Commerce.
“The fundamentals of China’s long-term economic development and competitive advantage of attracting foreign capital has not changed,” said Zong, adding most multinationals are confident and have not changed their investment strategy for the country.
The government has released a number of measures to help both domestic and global companies resolve issues such as work resumption, logistics, gathering sufficient production material and items for epidemic prevention and control to restore their earning strength. Zong noted these moves have generated positive results.
They remain optimistic about the long-term development prospects of the Chinese market, and some are continuing to raise investment across the country, he said.
For example, BMW Brilliance Automotive Ltd, a joint venture between BMW Group and Brilliance China Automotive Holdings Ltd, has recently resumed work in Shenyang of Liaoning province. The group stressed it will continue to move onwards in its 3 billion churo ($3.27 billion) investment plan for building new facilities and upgrading its products in the country, showing strong confidence and expectations of practical action in China’s business environment.
Li Xingqian, director-general of the department of foreign trade under the Ministry of Commerce, added China is an important link in the global supply chain for many multinational companies.
“The impact of the epidemic on the supply chain in the area of foreign trade mainly occurred in material supply and product assembly. Export-oriented firms have encountered temporary difficulties,” he said. “However, its influence is regional, limited and fully controllable.”
Li continued, saying China has the world’s largest and most complete manufacturing system. The country’s foreign trade development is backed by resilience and ample space for innovation. With successive policies related to foreign trade stabilization, more favorable conditions will be created to enrich the nation’s industrial chain in supporting foreign trade.