(Fighting new crown pneumonia) Manufacturing industry "turn crisis into opportunity" reflects Guangdong's economic resilience

China News Agency, Guangzhou, February 24th (Reporter Cheng Jingwei) has a GDP of more than ten trillion yuan (RMB, the same below). Guangdong, China's largest economy, is pushing ahead with the impact of the current new crown pneumonia epidemic. The industry resumed production in an orderly manner, production capacity gradually picked up, and economic operation reflected strong resilience.

The state of Guangdong's economic operation has a great impact on the whole country, and plays an important role in defusing the impact of the epidemic and promoting economic development. Guangdong officials stressed the need to "turn crisis into opportunities" and "promote the province's economy to move steadily on the high-quality development track."

According to the Guangdong Provincial Department of Industry and Information Technology, as of February 21, nearly 42,000 industrial enterprises above the designated size in Guangdong resumed work in an orderly manner, with a return rate of more than 80%, and the pace of resumption was significantly accelerated. Among them, the 102 key manufacturing enterprises that Guangdong Province directly follows, have all resumed production.

"Especially the leading companies not only resumed smoothly, but also achieved a good level of capacity utilization." Yang Pengfei, deputy director of the Guangdong Provincial Department of Industry and Information Technology, said, for example, Huawei ’s capacity utilization rate exceeded 90%, Gree was close to 80%, and More than 70%.

On February 20th, in Guangdong Jinjingke Electronics Co., Ltd., located in Nansha District, Guangzhou, the return workers wore masks to work in an orderly manner in the production workshop. Photo by Chen Xin, reporter from China News Agency

At the same time, Guangdong is also vigorously coordinating the upstream and downstream industry chain companies to promote synergy and resume production in all aspects. As of February 20, Huawei's first batch of 57 core suppliers has resumed work, and 51 of the second batch of 52 core suppliers have resumed work; 18 of ZTE's 21 suppliers have resumed work; Midea's 169 suppliers have 149 resumed work.

In Foshan, a major manufacturing city in the Pearl River Delta, Guangdong Keda Jeneng Co., Ltd., a leading company in building materials machinery, is currently accelerating production and completing the delivery of backlogs from previous years. Wu Muhai, the company's president, said that after the resumption of work, the company had new orders in Indonesia, Iran, Turkey and other countries and regions.

Data from China Southern Power Grid Guangdong Grid Corporation showed that in the first week of resumption of production in Guangdong (February 10-16), the province ’s cumulative power consumption increased by 17.3% compared with the week before the resumption. The large increase reflects from the side that the production and operation order of enterprises in the Pearl River Delta is recovering.

The rapid and orderly resumption of production in the manufacturing industry is behind Guangdong's effective implementation of tiered and differentiated prevention and control strategies.

On the one hand, the epidemic situation in the province has improved, with newly confirmed cases on a single day from February 16 to 23 hovering in the single digit "low." On February 24, the level of emergency response to the new crown pneumonia epidemic in Guangdong Province was adjusted from the first-level response to major public health emergencies to the second-level response.

On the other hand, since February 10, Guangdong has adopted a series of scientific and powerful measures to allow people's flow, logistics, and capital flow to rotate in an orderly manner, smooth the economic and social cycle, and create good conditions for the recovery of enterprises.

This year's epidemic made the labor shortage in Guangdong enterprises more prominent after the Spring Festival. Guangdong has joined forces with neighboring major labor-exporting provinces and autonomous regions in the past few days to take sufficient precautionary measures and organize workers to return to Guangdong through special point-to-point special trains. Ge Guoxing, deputy director of the Guangdong Provincial Department of Human Resources and Social Security, said that in addition to multiple high-speed rail trains, Guangdong has planned to arrange more than 1,000 special return trains.

Guangdong also recently issued related policies to open a green channel to support the logistics and delivery industry to resume work and resume production. It is clear that it is necessary to ensure the smooth flow of freight vehicles to and from designated points within and across provinces, and to simplify the review process of logistics and delivery companies' resumption of work.

In terms of smooth capital flow, the Guangdong Provincial People's Government proposed in the "Resumption of Production and Resumption of Production 20" a number of policies to strengthen financial relief, support corporate guarantee financing and lease financing; the Guangdong Provincial Financial Supervision Administration, the People's Bank of China Guangzhou Branch A number of institutions have jointly issued special financial documents supporting SMEs during the epidemic prevention period.

Nonetheless, the negative effects of the outbreak on Guangdong's manufacturing industry, such as rising labor costs, reduced orders, and industrial transfer, cannot be underestimated.

"At present, Guangdong should resume the production operations of manufacturing companies and related upstream and downstream supply chain companies as soon as possible; priority should be given to the restoration of production and related logistics and transportation in global value chain industries as soon as possible." Professor Li of Guangdong University of Foreign Studies and Secretary-General of Guangdong Institute of International Strategy Qing believes that Guangdong should turn the pressure of the epidemic situation into a driving force, accelerate the automation and unmanned production and transformation of export-oriented manufacturing enterprises, strengthen core competitiveness, and improve the position of Guangdong's manufacturing industry in the global value chain.

"The epidemic will eventually pass and it will also bring more thinking to enterprises: effective measures to deal with risks, such as accelerating the pace of automation, accelerating the landing of the industrial Internet, and reducing costs and increasing efficiency through lean manufacturing, will be more valued." Guangzhou Ruisong, which manufactures robots According to Sun Zhiqiang, chairman of Intelligent Technology Co., Ltd., after this "epidemic", Guangdong's robot and intelligent equipment industry will accelerate its development. (Finish)