Since the outbreak of the new crown pneumonia epidemic, some industries have been impacted to a certain extent, and there have been rumors that China is worried about China's economic trends. Some people claim that multinational companies will accelerate the shift of production capacity and China's important role in the global supply chain and industry chain will be replaced. The more it is at this time, the more comprehensive, dialectical, and long-term perspective is needed to look at China's economic development, strengthen confidence, and strengthen confidence.
A sound industrial system is our foundation
On March 9th, KN95 protective disposable masks and medical disposable masks produced by Gree Electric Appliances went online. This was less than half a month after it announced that it would adjust its production line and focus on the production of epidemic-related products.
Gree Electric's cross-border war "epidemic" is a microcosm of Chinese companies' flexible and flexible production conversion. Previously, SAIC-GM-Wuling Automobile Co., Ltd. independently produced a fully automatic mask machine in only 76 hours; Midea Group "vacated" a water purifier production workshop and started multiple self-purchased mask production lines; Sinopec built one in 12 days. The production plant of melt-blown cloth for mask materials is expected to be completed and put into operation in mid-April ... "Whether it is to stabilize production and supply, or to switch to production of epidemic prevention materials, all of them reflect China's strong production capacity, complete supporting capabilities and high efficiency. Xu Zhaoyuan, director of the Research Office of the Ministry of Industry and Economics of the Development Research Center of the State Council.
A complete industrial system and complete upstream and downstream industry supporting capabilities are the foundation for the rapid conversion of Chinese enterprises. It is understood that China currently has 41 major industrial categories, 207 medium industrial categories, and 666 small industrial categories. It is the only country in the world with all industrial categories listed in the United Nations Industrial Classification. With a complete range of industries, complete infrastructure, and open financial, investment, and service policies, China has increasingly become a world manufacturing center and creation center, and has become increasingly important in the world's industrial and supply chains.
"It can almost be said that without the normal operation of China's manufacturing industry, the world's manufacturing industry cannot operate normally." Qiu Haiping, a professor at Renmin University of China, said that the current basic pattern of the world's industrial chain and supply chain is the fourth step in China's reform and opening up. For more than a decade, especially in the context of the rapid development of China's manufacturing industry since the new century, it is impossible to have a sudden change due to an epidemic. So far, although there is a voice of "declining" China's important role in the global supply chain and industrial chain, there have been few reports of foreign companies withdrawing contracts from Chinese companies or relocating them to other countries. "China's important status is widely recognized by the global business community." Qiu Haiping believes.
The huge consumer market is a decisive structural variable
"From January 20th to February 18th, JD.com Fresh only sold nearly 88,000 tons of fresh products, a year-on-year increase of 226%. The sales of beef and chicken in the station grew rapidly, with sales increasing by 329% and 42% year-on-year, respectively. ... "Recently, Jingdong Sheng, the person in charge of Jingdong Fresh, introduced it in an interview with CCTV.
Not only the fresh industry, but since the outbreak, a number of new industries, new formats, and new models, including online consumption, unmanned delivery, free applications, medical health, and shared formats, have continued to develop. "This is essentially a huge driving force for consumption. China's per capita GDP has exceeded $ 10,000, and it has the largest consumer group in the world. The huge consumer market has promoted the upgrading of the production industry, promoted the increase of production capacity, and promoted the upgrading of the manufacturing and consumption patterns. "Said Wang Junchao, an associate professor at the Central Party School (National School of Administration).
According to World Bank data, the population size of countries with per capita GDP of more than US $ 10,000 in 2018 was nearly 1.5 billion. With the addition of nearly 1.4 billion people in China, the global population in this rank will be close to 3 billion. This is China's contribution to the world as a developing economy, and even more so for the global supply chain and industry chain. A decisive structural variable.
The data show that among the 20 major industries, the consumption share of 17 industries in China accounts for more than 20% of the total global consumption. Taking the information electronics industry as an example, China's mobile phone sales account for about 40% of global sales, electric vehicle sales account for 64%, and semiconductor consumption accounts for 46%. It is both a supplier and a major market for global manufacturing, with significant economies of scale and the largest consumer groups. These factors continue to strengthen China's important position in global manufacturing.
"At present, the comprehensive advantages of China's industrial chain not only cannot be replaced by other countries, but will also be improved with the addition of new industries." Said Chu Shijia, director of the Comprehensive Department of the Ministry of Commerce. In the long run, the impact of the epidemic on the supply chain and the industrial chain is phased. With the epidemic spurring the rapid growth of industries such as 5G and the "cloud" economy, China's role in the global supply chain and industrial chain will only increase, not Will weaken.
Better business environment is significant for stabilizing the global supply chain and industry chain
At 9:30 am on February 25, a cargo plane carrying urgently needed accessories from American car company General Motors took off from Pudong Airport. The flight carried 80.45 tons of auto parts and 422 pieces. In the early morning of the 26th, the cargo plane arrived in Chicago. This is the first time that Shanghai has adopted a large-scale charter charter to provide multinational auto companies with the supply of spare parts. It is also a powerful action for Chinese companies to maintain the stability of the global supply chain.
Previously, these batches of parts were shipped overnight from Chongqing and other places to Shanghai, and successfully completed with the cooperation of logistics companies and airlines. According to the relevant person in charge of the airport customs, "It took only eight days from the multinational car company to request charter flights, to complete the charter procedures, and to coordinate the customs declaration in multiple places."
In recent years, China's business environment has significantly improved. The Global Business Environment Report 2020 released by the World Bank shows that China's business environment has been ranked 31st in the world in 2019, ranking among the top 40 in the world, and has been included in the global optimization for two consecutive years. The top ten economies with the largest improvement in the business environment. "China has made great efforts to improve the business environment for SMEs, maintained a positive pace of reform, and made commendable progress on a number of business environment indicators," said Rui Ze, director of the World Bank's China Bureau.
As one of the important measures to optimize the business environment, the data shows that in 2019, China's tax and fee reductions exceeded 2.3 trillion yuan, accounting for more than 2% of GDP, which effectively reduced corporate burdens, increased household income and consumption capacity, It has promoted enterprises to increase investment in research and development, stabilize investment and expand employment, and strongly supported the stable development of the real economy, especially the manufacturing industry. "The impact of the epidemic is limited and temporary. The continuously optimized business environment is the most critical factor for attracting global companies, which is of great significance for stabilizing the global supply chain and industry chain." Qiu Haiping believes.
China's economy is a sea, not a small pond. A squally shower can overturn a small pond, but it cannot overturn the sea. At present, under the strong leadership of the Party Central Committee with Comrade Xi Jinping as the core, the situation of the epidemic prevention and control is actively improving, and the resumption of production and production is advancing in an orderly manner. This is China's responsible big country, and it is also stabilizing the global supply chain and industry chain. Vivid practice of economic vitality. (Reporter Xue Peng)