MOFCOM: No major relocation of production and supply chains to other countries
By Wang Hui
01:26

China's Commerce Ministry (MOFCOM) said on Thursday that it has not seen a major relocation of production and supply chains to other countries because of the coronavirus outbreak. 

At an online press conference, the ministry said it believes the acute problems that foreign companies have faced during the epidemic are temporary, and will be resolved by authorities soon.

"The coronavirus outbreak has caused difficulties for China's companies, including logistic blockage, lack of labor, and the increase of operation cost," said Zong Changqing, head of the Department of Foreign Capital of MOFCOM.

"Local governments have been working to support work resumption in key industries," added Zong. "Nearly all key foreign companies in Shanghai have resumed operation. And the Shanghai government has visited 720 key foreign companies, and tried to help them resolve problems."

Zong says some problems will be resolved gradually. In the long run, the outbreak's impact on China's supply chain and production chain is temporary.

"China's important position in those areas won't change. The outbreak has not caused big shift of supply chain and production chain."

Zong adds that a recent survey conducted by American Chamber of Commerce in China shows that more than half of the companies say it is too early to tell the outbreak's impact on their long-term strategy. And one third do not think it will affect their operations in China. 

Nearly one-third of respondents expect a return to normal business operations by the end of March, and 12 percent project delays to extend through the summer, according to the survey.

Zong said many recent surveys show that the positive trend in China's economy has not changed, and the confidence many international companies have had in investing in China has not changed, and they are still positive about the Chinese market's long term development.