Under the influence of the epidemic, there have been many breakpoints in the global supply chain, and the voice of encouraging American companies to move their production layout back to the United States has sounded again. Will the Huamei Enterprise withdraw its industry chain from China? PwC’s latest survey results show that over 70% of the U.S. companies interviewed said they would not relocate production, supply and procurement operations overseas due to the impact of the epidemic.
Recently, the American Chamber of Commerce in China, the American Chamber of Commerce in Shanghai and PricewaterhouseCoopers China jointly conducted a survey to assess the impact of the new coronary pneumonia epidemic on the supply chain activities of large US-funded companies in China . The survey was conducted from March 6 to 13, 2020, and received responses from 25 companies, most of which have operated in China for more than 20 years, covering industries such as industrial products, consumer businesses, healthcare, and information technology.
The survey shows that about half of the interviewed companies have not yet fully resumed production in early March. 44% of the companies surveyed are expected to return to normal production levels by the end of March or April 2020, while 48% of companies said they have not yet determined a timetable for returning to normal production levels.
When asked about the biggest challenges facing companies in the next month, “logistics limited” is the most answer given by companies, followed by the decline in supplier capabilities and employees insufficient. However, 68% of the companies surveyed expect that the company’s supply chain will return to normal within 3 months.
36% of the interviewed companies and 44% of the interviewed companies indicated that the impact of the epidemic on the company ’s import and export supply chains is limited, which accounts for More than the most answered, there are 24% of companies that have no impact on the import and export supply chain. Only 16% of the companies surveyed said they had a serious impact on the import supply chain, and 8% of the companies surveyed said they had a serious impact on the export supply chain.
Fifty-six percent of the companies surveyed said that in the support policies of all levels of government in China, accelerating the approval of resumption of work application is the most helpful to the company ’s business and the second highest For tax relief. All interviewees said that the Chinese government’s support policies for enterprise supply chains based on the impact of the epidemic are also effective for foreign-funded enterprises.
84% and 72% of the companies surveyed said they would not relocate their production / supply business and procurement business to other parts of China or overseas due to the impact of the epidemic. 40% of the companies stated that the company’s long-term (3-5 years) supply chain planning in China will not change due to the new coronary pneumonia epidemic.
Previously, some American media questioned Kudlow, the chief economic adviser of the White House, about the withdrawal of Huamei from the US. He said that the US government encourages companies to returnLocally, all expenses incurred by a company moving from overseas to the United States can be used to tax deductible in the current period.
The Ministry of Commerce spokesman Gao Feng said on April 16 that, overall, although the epidemic has a certain impact on foreign-funded enterprises in China, China will not and will not appear The large-scale withdrawal of foreign capital. Foreign investors continue to be optimistic about China, and their confidence and determination for long-term business development in China have not changed.
Gao Feng said that the current global industrial chain supply chain pattern is the result of joint efforts and joint choices made by enterprises of various countries over the years, and is the factor cost, industrial support and infrastructure of various economies. The results of such comprehensive factors are not formed overnight, nor can anyone or any country change at will.