How to correctly understand the impact of coronavirus epidemic on the supply chain of Made-in-China products?

Logistics for made-in-china products

Whether you are importing products from China or providing international freight forwarding service like me, it is necessary for you to have a correct understanding of the impact of the 2019 new coronavirus epidemic, which is currently rampant in China, on the products made in China and the supply chain, so that you have all-around knowledge, and make a correct judgment and take the right measures. 

supply chain for made-in-china product

Background

2019 new coronavirus (2019 nCOV) was found due to viral pneumonia cases in Wuhan in 2019 and named by the World Health Organization(WHO) on January 12, 2020. Coronavirus is a large virus family, which is known to cause cold, Middle East respiratory syndrome (MERS) and severe acute respiratory syndrome (SARS) and other serious diseases. The new coronavirus is a new strain of coronavirus which has never been found in human body before.        Since December 2019, surveillance of influenza and related diseases has been continuously carried out in Wuhan, Hubei Province. A number of cases of viral pneumonia have been found, all of which are diagnosed as viral pneumonia / pulmonary infection.

The common signs of people infected with coronavirus are respiratory symptoms, fever, cough, shortness of breath and dyspnea. In more severe cases, infection can lead to pneumonia, severe acute respiratory syndrome, renal failure, and even death. At present, there is no specific treatment for the disease caused by new coronavirus. But many symptoms can be treated, so it needs to be treated according to the clinical situation of patients. In addition, supplementary care for infected people may be very effective.           

People need to protect themselves, including: keep basic hand and respiratory hygiene, adhere to safe eating habits, and try to avoid close contact with anyone who shows symptoms of respiratory diseases (such as coughing and sneezing).   
On the evening of January 30, 2020 local time, WHO announced that the new coronavirus epidemic was listed as a public health emergency (PHEIC) of international concern.

As of 24:00 on February 4, the National Health Commission has received 24324 confirmed cases (1 case deducted from Hainan Province) reported by 31 provinces (autonomous regions, municipalities directly under the central government) and Xinjiang Production and Construction Corps, 3219 serious cases, 490 dead cases, 892 discharged cases cured and 23260 suspected cases. A total of 39 confirmed cases have been reported from Hong Kong, Macao and Taiwan: 18 cases (1 death) in Hong Kong, 10 cases in Macao and 11 cases in Taiwan.

 

1. At present, the actions of the Chinese government are very responsible, reflecting the style and level of a big country.

After the outbreak of the epidemic, the Chinese government quickly mobilized huge national human and material resources to support Wuhan. The people in China and cross the world have extended their help and supported the protection and care work in Wuhan. Let’s prove it with concrete examples.

1) The closure of Wuhan reflects the Chinese government’s attitude of being responsible to the people.

In the history of similar outbreaks in the world, such measure is very rare. This responsible attitude reflects the strength of China’s national machinery. What’s more, as Chinese, we all support the policies and measures of the central government.

2) In order to better isolate the epidemic, China quickly built  and put into use the Huoshenshan Hospital within 10 continuous days and nights.

This reflects China’s strong economic strength and construction level. If you already have many years of experience doing business with Chinese companies, you must know that Made-in-China products are very popular in your country or region. But you should also know now that the advantages of Made-in-China can accomplish tasks at an incredible speed whenever needed. The Huoshenshan Hospital has proven the strength of Made-in-China, and the Leishenshan Hospital under construction will continue to prove it.

3) The Chinese people are brave people, and we firmly adhere to the consistent value that one side in difficulties shall get supports from all other sides.

Since the outbreak of the epidemic, we Chinese people have offered our advice and money to help Wuhan. Take the donation of masks as an example. Many Chinese of all trades have taken action to purchase qualified masks all over the world. Even some Chinese businessmen directly buy all the shares of a foreign mask factory, so as to produce masks faster and better, thus to support Wuhan and further the whole China. History has proved that no disaster or difficulty will frighten the great Chinese people. History will continue to prove the truth. As Dr. Kissinger, the former State Secretary of the United States, described it, “the Chinese have always been lucky, they have always been well protected by the bravest.”

2. Impact of the epidemic on Made-in-China products and the supply chain

In order to better prevent the spread of the virus, the central government of China has decided to delay the Spring Festival holiday, and local governments have launched various programs in line with their own regional programs according to their own actual situation. The overall idea of planning is to delay the start-up time of factories and schools, so as to win the victory of epidemic prevention and control. These policies will eventually have an impact on the industrial chain of Chinese manufactured products.

1) Many workers in export factories are unable to return to work according to the preset plan, which affects the delivery time of products.      

China Factory workshop     

Most of the workers in China’s foreign trade factories go home for holidays during the traditional Spring Festival holiday. Now, due to the delay in work commencement and other related restrictions on transportation between provinces and cities, the original commencement time of the factory will be affected, which will delay the delivery of orders. The delay due to the epidemic outbreak was unforeseen and shall be regarded as force majeure.

2) China’s domestic logistics will also be affected.  

China’s domestic logistics is also limited by the lack of drivers. Drivers, like factory workers, will not be able to get back to work in the same time as in previous years. It will slow down the efficiency of domestic logistics, which will affect the allocation efficiency of production factors in manufacturing plants, and thus affect the completion of goods production and delivery time.

3) The impact of PHEIC on the international logistics of products manufactured in China.

        As WHO classified China’s epidemic as PHEIC, many countries have taken targeted measures of prevention. We have seen that the United States, Singapore, Australia, the Philippines have introduced measures to strengthen the quarantine and supervision of ships attached to Chinese ports. This is bound to affect the time of goods transportation.

3. Advice from Twingsupply

First of all, we have to look at the views of WHO, a professional organization. See the screenshot below:           

WHO ADVISE

Why is it safe? We can simply explain that there are several reasons.           

1) Coronavirus infects people through people.           

This is a basic knowledge. Coronavirus can’t be transmitted through other carriers, which means products and express delivery, letters and packages of Made-in-China are safe.

2) The transportation time from China to other countries is very long.           

Products made in China need to be transported by means of transportation, and the virus cannot survive for such a long time. So based on the above common sense, the products made in China are very safe. So you don’t have to worry about all those horrible rumors. Made-in-China has gone through various tests from the start of reform and opening up to China’s accession to the WTO, and even today. It has always been popular with the people cross the world, which has been proved. It’s ridiculous to lose confidence in Chinese products and enterprises because of the current epidemic.

Conclusion 

As an international freight forwarder in China, I personally hope to spread this article as far and fast as possible so as to assure importers all over the world. China will definitely overcome the epidemic, resume production in the fastest time, and continue to provide cost-effective products for all parts of the world. There is a Chinese proverb: charcoal in the snow is better than icing on the cake. In this difficult period, I sincerely hope that all importers and Chinese suppliers can stand together and fight side by side. The Spring of 2020 is coming, though she may be a little late.

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