China manufacturig industry resume in Feb.

1. Japanese automakers plan to resume production in China

Honda said on Feb. 7th that it expects to resume production at its four-wheeler factory in Wuhan city after 17th of Feb. Toyota Motor also decided on the 7th to postpone the restart of four factories in China scheduled to resume work as early as the 10th until the 17th. NISSAN will restart factories in and around Wuhan after 14th. For other plants in places like Guangzhou, Honda and NISSAN are also likely to resume work later than the scheduled day Feb. 10th.

Source from mainichi.jp, auto.qq.com, etc.

2. Auto, smartphone makers like BYD, Foxconn to produce masks

A shortage of face masks in China amid the coronavirus outbreak has prompted the entry of new manufacturers, from some unexpected fields. They include an automaker and a smartphone producer.

Shenzhen-based electric vehicle maker BYD says it will begin mass-producing the masks as early as Monday. Officials have set a target of five million per day by the end of the month. They've also set a daily goal of 50,000 bottles of disinfectant.

Taiwan's Hon Hai Precision Industry or Foxconn, a maker of iPhone handsets for Apple is also pitching in. A group firm of the company says it aims to be producing two million masks a day within the month at its factory in Shenzhen.

A quarter of mask producers in China had yet to restart production as of Monday due to travel restrictions and a shortage of workers. Many government-backed businesses have been importing masks from abroad.

Source from NHK WORLD JAPAN

3. National Development and Reform Commission: the recovery rate of mask manufacturing enterprises exceeds 76%; the recovery rate of protective clothing enterprises is 77%

On Feb.11th, the State Council of the People's Republic of China (CPC), held a press conference on the joint prevention and control mechanism for pneumonia caused by the novel coronavirus. Cang liang, secretary general of the National Development and Reform Commission said that at present, from the national situation, the provinces, regions and municipalities other than Hubei are gradually resuming production, especially the key enterprises in medical supplies, energy, food, logistics and other key sectors have been back to work. According to the latest data, the recovery rate of mask manufacturing enterprises has exceeded 76%, and that of protective clothing enterprises has reached 77%. The recovery rate of grain production and processing enterprises under national key monitoring is 94.6%, and that of coal mining enterprises is 57.8%. Electricity, natural gas and refined oil are in sufficient supply, and civil aviation, railway and water transport networks are operating normally.

Source from CHINANEWS.COM

4. Chinese smartphone makers like Huawei, Oppo, Vivo, ect are endeavor to keep factory lines running

Huawei smartphones are on display at the company's recent Lunar New Year celebrations in Brussels.

Smartphone makers are working hard to maintain normal operations as the novel coronavirus outbreak is posing challenges to logistics, supply and manufacturing operations.

The efforts came as a report forecast that due to the virus epidemic, smartphone shipments from China will likely fall by 5% this year, while global smartphone shipments are set to see a 2% drop.
Chen Mingyong, CEO of Oppo, a Chinese smartphone major, said it is undeniable that the outbreak will have a certain impact on the company, but that will be temporary.
"The development momentum of Oppo won't be changed, because the company's fundamentals have not changed, and the trend of the entire industry has not changed," Chen said. The Dongguan-based company has been promoting remote work for most of its employees, and its manufacturing centers in Indonesia, India, Algeria and Bangladesh will support the company to make handsets globally.
The efforts follow market research company Strategy Analytics' latest report that the outbreak of novel coronavirus will affect supply and manufacturing of smartphones, with the biggest impact likely to be on China's smartphone market.
China makes 70% of all smartphones in the world. Any delay in operations of factories, through quarantine or travel restriction, will inevitably cause a temporary labor supply shortage, Strategy Analytics said, adding that other connected economies will also feel a ripple effect, like Japan or the United States.
Still, Chinese smartphone companies are scrambling to resume some of their work, while ensuring the health of their employees is not compromised.
Huawei Technologies Co Ltd said the company has restarted normal operations and production of consumer electronics and telecom equipment, with most of its recovered business located in Dongguan, Guangdong province.
Vivo, another smartphone major, said the company has taken a string of measures to safeguard the health of its employees and it will continuously evaluate when to restore factory production to normalcy.
Xiaomi Corp is also working to maintain normal operations. The Beijing-based company said it will unveil its latest flagship smartphone Mi 10 series on Thursday via online livestreaming.
CITIC Securities Co Ltd said in its latest research note that electronics companies will face risks of low output in February due to uncertainties involving labor shortage, but it is worth noting that companies that have overseas presence, high-level automated production and are proficient in research and development will see fewer impacts from the epidemic.
CITIC Securities said for most companies in the electronics manufacturing industry, the first quarter is the traditional offseason, accounting for less than 20 percent of their annual revenues. The virus' impacts on the industry still remain to be seen, it said.

Source from CHINADAILY.COM

5. Over 4,000 companies in Dongguan, Guangdong resume work,  of which manufacturing accounts for nearly 80%

As of the evening of February 10th, a total of 4,491 enterprises had started to resume work in Dongguan, of which 79.54% were in the manufacturing sector. It is estimated that the government has granted over 168 million RMB subsidies to enterprises for stable employment. In order to help enterprises stabilize their operations, Dongguan has introduced "15 measures" to support enterprises and help them solve their difficulties, which is expected to reduce the burden of enterprises by more than 2.5 billion RMB.

Source from CHINANEWS.COM

6. Ministry of Industry and Information Technology: support digitalization & intelligent transformation, and help SMEs to resume production

The ministry of Industry and Information Technology (MIIT) issued a notice on Feb. 10th about how to cope with the outbreak of the novel corona virus pneumonia and help small and medium-sized enterprises (SMEs) to get back to work and recover from difficulties. In the notice, it will take 20 measures in 6 aspects to support enterprises in their digital transformation and upgrading of smart manufacturing, to help SMEs resume production in an orderly manner and tide over difficulties. Also, Chinese government is actively promote online office, video conferencing, remote collaboration and digital management. In addition, it will also accelerate the deployment of 5G and industrial Internet applications, and guide large enterprises and professional service institutions to launch cloud manufacturing platforms and cloud service platforms for small and medium-sized enterprises.
Source from cmiw.cn