Truck component maker sees business growth amid COVID-19
By Wei Lynn Tang
03:34

42-year old Zhu Ting, who owns a truck component processing business in Chongqing, almost thought he wouldn't be able to pull through the COVID-19 pandemic.

His 30-staff strong company, which makes parts for trucks' gear boxes and axles, resumed work in the middle of February.

"Our three weeks of ceasing operations due to the coronavirus outbreak cost us a direct economic loss of about 300,000 yuan (over 42,000 U.S. dollars)," said Zhu, owner of Chongqing Sanchuang Auto Parts Co., Ltd.

"At that point in time, there was zero confidence. I thought my company may not be able to survive this crisis, and even faced the risk of shutting down. But as it turned out, not only did we avoid this, but we also achieved a counter-trend growth."

Zhu said the local government assisted a lot in providing both guidance in prevention and control work and in materials.

Zhu Ting said his company benefited from pandemic-related financial policies. /CGTN

Zhu Ting said his company benefited from pandemic-related financial policies. /CGTN

He also commended the central government's financial policies, which were dispensed to enterprises at a swift speed.

"We obtained an 800,000 yuan loan, at the benchmark interest rate, by using our intangible intellectual property as collateral and basis for evaluation. We used this to fund our working capital, to purchase raw materials and pay suppliers, thus solving our temporary liquidity issue," he shared.

"Also, we received a partial refund of social security payments, and a rate reduction from February until June. This amounted to about 80,000 yuan in total and was very helpful to us."

Thanks to policies above, Zhu said it allowed his business to pick things up quickly.

Fundamentally, Zhu said demand for truck parts is increasing, spurred by a recovery in the transportation industry and in infrastructure projects, which includes road construction and repairs.

Zhu said his products mainly serve China's truck aftermarket, after their guarantee period is over.

Wang Yu said measures to stabilize employment have been so far effective. /CGTN

Wang Yu said measures to stabilize employment have been so far effective. /CGTN

In fact, his entire operation will be relocated to a new spot in the next few months, where he is able to double his production output.

Zhu's company is 10 years in the making. Before this, he worked in other provinces as a migrant worker in a related field for a decade.

Wang Yu, head of the Human Resources and Social Security Bureau for Migrant Workers in the Qijiang District, Chongqing, said measures taken to stabilize employment within the migrant workers space have been effective.

"We have subsidized or reduced the social security payment of employees. This has helped to reduce the labour costs of enterprises, so they can focus on resuming production," Wang said.