Made in China under the epidemic: dangers and opportunities in the supply chain.

Manufacturing relies on complex and integrated production systems. The "butterfly effect" is easy to appear in a key area or link. The epidemic has made many companies feel pressure from the supply chain and has brought the seemingly obscure term supply chain into the public eye.

At the G20 leaders' special summit on March 26 to deal with the new coronary pneumonia, ensuring the security and stability of the global supply chain was a common call.

How important is the supply chain? What are the dangers and opportunities in the supply chain under the epidemic?

Cutting wire, card buckle, wiring, tape...... Qingdao Jimo Jingxin Electronics Co., Ltd. 22000 square meters of production workshop, the workers nervous busy. "We are trying our best to catch up with the order. The automatic cutting equipment operates 24 hours a day." Park leap, director of the company's management department, said that about 200000 sets of automobile wiring harnesses have been produced and sent to South Korea one after another.

Automobile wiring harness is mainly used to transmit signals and power supply to various parts of the automobile chassis, engine, motor, etc., and is called the "nervous system" of the automobile ". More than 30 South Korea automotive wiring harness industry chain enterprises, Shandong accounted for the vast majority. Every move to resume production is related to the smooth progress of vehicle production.

Behind a piece of clothing are yarn, fabric, accessories, trademarks and other chains. The production of a car involves tens of thousands of parts. The manufacturing industry is interlocked, and each node is intertwined.

The supply chain determines cost control. The strength of China's supply chain network lies not only in its large scale, complete variety and fast logistics, but also in the fact that many supplier enterprises can produce high-quality parts and semi-finished products at a lower cost.

The supply chain also determines efficiency and industrial security.

Dishang Group is a well-known foreign trade clothing manufacturing enterprises, not long ago converted to protective clothing. Zhu Lihua, chairman of the company, said the global epidemic is spreading and there are fluctuations in the production of protective clothing. "Many materials and auxiliary materials come from different suppliers, and production in one region will be affected if production is blocked."

A number of heads of large manufacturing enterprises said that due to the influence of terminal consumption and supporting supply in some countries, many enterprises in Southeast Asia are also facing the lack of orders and the pressure of survival, resulting in the "Matthew effect".

"The international division of labor is deepening, and the global supply chain system is expanding and deeply intertwined." Luan Qun, director of the Institute of Policies and Regulations of the CCID Research Institute of the Ministry of Industry and Information Technology, said that the importance of the supply chain and the significance of win-win cooperation are more prominent.

Market volatility, chain disruption, rising costs ...... Under the epidemic, many manufacturing companies are feeling the pressure from the supply chain.

Welded pipe was once the most anxious thing for Jiang Jinglei, general manager of Ningbo Yixiang Blow Molding Furniture Co., Ltd. Since the resumption of work, the supply of upstream raw material welded pipe has put the company in trouble. The local government urgently contacted and screened several suppliers with an annual output value of more than 15 million yuan for docking, and the enterprise side was operating normally.

"Can not control, very helpless, also very powerless" is the feeling of many enterprises.

Pressure always forces companies to think and move forward. Under the crisis, many industries and enterprises began to reflect on the "supply chain.

More resilient businesses survive better. Many small and medium-sized enterprises began to focus on the development of "Plan B", reserve alternative suppliers, improve the industrial chain. And many large enterprises, already in the layout or strengthen the control of the supply chain.

Shenzhou is the largest garment processing and manufacturing enterprise in China. With the control ability of the whole industry chain, such as yarn, digital printing and surface accessories processing, Shenzhou has completely resumed production in a short time, and the order has not been affected. "We should put the core link at home and make an extension of manufacturing overseas." Shenzhou International Chairman Ma Jianrong said.

Industry experts believe that the epidemic will, to some extent, accelerate the restructuring of the global supply chain and promote the adjustment of the global manufacturing landscape. Seize the opportunity to enhance the competitiveness of manufacturing, is a top priority.

In Luan Qun's view, the epidemic is like a comprehensive "physical examination" of the manufacturing industry, which can be better aware of which links are weak and make up for the shortcomings in a timely manner, which is conducive to seizing opportunities in the changing situation.

Accelerating the development of the industrial Internet to increase the integration of the supply chain is also a current opportunity.

In a series of recent "new infrastructure" initiatives, the Ministry of Industry and Information Technology specifically proposed to speed up the popularization of industrial Internet pilot demonstration. Tian Ye, deputy chief engineer of the China Industrial Internet Research Institute, believes that this move aims to promote the sharing of information, technology, production capacity, and orders, and achieve precise configuration and efficient docking, thereby strengthening the coordination of the supply chain.

China has the most complete manufacturing system in the world. Among the more than 500 major industrial products announced by the United Nations, the output of more than 220 kinds ranks first in the world, and it is the center of the global supply chain of many manufacturing industries.

To a certain extent, China's supply chain is stable, and the global supply chain is stable.

The People's Bank of China and other five departments require that relevant industries and enterprises with development prospects but temporary difficulties, especially small and micro enterprises, should not blindly withdraw loans, cut off loans and press loans. The Ministry of Finance has increased its support for subsidized loans for individuals and enterprises affected by the epidemic. The Ministry of Industry and Information Technology has sorted out more than 7000 small and medium-sized enterprises supporting the core of the global industrial chain and provided accurate assistance to practical difficulties. Only Foxconn has resumed production in coordination, we will coordinate the mobilization of resources in nearly 20 provinces and promote the resumption of work by more than 60 core supporting enterprises.

The executive meeting of the State Council held on March 24 specifically proposed to deploy to further enhance my country's international air cargo capacity and strive to stabilize the supply chain.

At present, the average operating rate of regulated industrial enterprises in the country, except Hubei, exceeds 95%. From the Ministry of Commerce to grasp the 10,000 key foreign-funded enterprises to resume production situation, as of March 12, in addition to Hubei, the country's 60% of the manufacturing key foreign-funded enterprises to resume production rate reached more than 70%.

Since the outbreak of the epidemic, China has promoted the industrial chain to resume production in an orderly manner, contributing to the stability of the global supply chain.

China will increase the supply of raw materials, daily necessities, epidemic prevention materials and other products to the international market, especially to ensure the production and export of enterprises and key products that have important influence in the global industrial chain, and to support enterprises to negotiate online and hold online exhibitions ...... Insist on expanding openness and launching a series of initiatives to provide security for the global supply chain.

"Risks and challenges highlight the importance of unity and cooperation." Zhang Weiguo, a second-level researcher at the Shandong Academy of Social Sciences, said that China should contribute to maintaining the stability of the global supply chain and share development opportunities for international companies.