People work on the production line of YTO Group in Luoyang, central China's Henan Province, March 5, 2020. /Xinhua
The industrial chain in China is resuming operations on a steady pace with the operating rate of large industrial enterprises reaching over 95 percent in provinces outside Hubei Province, but the country still faces uncertainties given the out-of-sync resumption of the upstream and downstream enterprises, coupled with the rapid spread of COVID-19 overseas, said an official with China's industrial authority on Friday.
Domestically, the country needs to cope with problems related to personnel logistics, shortage of cash flows for small and medium-sized enterprises (SMEs), insufficient epidemic prevention supplies, and asynchronous resumption of industrial chains, said Xin Guobin, vice minister of the Ministry of Industry and Information Technology (MIIT).
Therefore, the MIIT has given top priority to the smooth resumption of major industrial chains to better coordinate logistics, people and capital flow. It is also necessary to drive upstream and downstream enterprises to resume work and resume production, further helping the country's industrial sector get back on track, said Xin.
Yang Liping, chief inspection officer with the CBIRC speaks at a press conference, March 13, 2020. /CGTN
Tackle cash flow problems for SMEs
The ministry will step up its efforts to tackle problems related to the SMEs, crucial players in the industrial chain, through the implementation of supporting fiscal and financial policies, including reducing costs and enhancing credit support.
The new yuan loans in the first two months totaled 4.24 trillion yuan (605 billion U.S. dollars), up 130.8 billion yuan year on year.
In the first half of 2020, the growth rate of inclusive small and micro enterprises' loan balance should be no less than 30 percent year on year. On the basis of last year, policy banks will increase 350 billion yuan in special loans with preferential interest rates for private, small and medium-sized enterprises, said Yang Liping, chief inspection officer at the China Banking and Insurance Regulatory Commission (CBIRC).
A worker transports goods at a logistics center in Taiyuan, north China's Shanxi Province on March 12, 2020. /Xinhua
Meanwhile, banks and financial institutions this year will try to increase loans to individual industrial households by more than 500 billion yuan compared with last year, said Yang.
Domestic demand will be further boosted through new forms of consumption, including 5G technology applications, remote medical services and online education while stabilizing mass consumption in sectors, like vehicles, said Xin.
Risk remains as the global industrial chain faces impact
Since COVID-19 progressed to a "pandemic," China's manufacturing industry may inevitably face certain challenges.
Given the largest industrial scale of China and its big domestic market demand, Xin noted that the country's industrial development basis is relatively sound, so the impact on China is still manageable.
However, China is deeply involved in the global industrial chain, so the country will monitor the situation and cooperate with other countries to smooth resumption of production and minimize possible risks on the domestic economy, Xin added.
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