Foreign companies and joint ventures expect a strong 2020 performance in China, despite the economic impacts of the COVID-19 outbreak. Statistics show that 80% of foreign companies in Shanghai have resumed work since Feb. 10, and are now pushing forward the recovery and expansion of their production capacity.

Coordinating with the government

As one of Coca-Cola’s biggest bottling plants in Asia Pacific, Shanghai Shenmei Beverage and Food Company resumed work on Feb. 10, with 85% of employees having returned. Production of the company’s two plants in Shanghai (one in Jinqiao and the other in Minhang) has fully begun, to meet the demands in Shanghai and other sales territories.

(Bottles of Coca-Cola drinks on the production line)

“The main difficulties we ran into while preparing for the resumption of work included the absence of employees who had to travel back to Shanghai, and the blocked transportation of raw materials from other provinces,” said a person in charge of the company.

After learning of the situation, the authorities in Jinqiao and Pudong New Area assisted the company in obtaining a license to ensure timely transportation of supplies. As of Feb. 28, nearly 90% of the company’s production capacity has recovered. The warehouse and logistics center are also fully stocked, demonstrating a strong belief in the rapid recovery of the market and in the Chinese economy after the epidemic is over.

Many people working in Shanghai live in nearby provinces like Jiangsu and Zhejiang, not far from Shanghai. Ms. Yu Xianmei, a resident in Taicang City in Jiangsu, is such a commuter. She is an employee of Amore Pacific’s Beauty Campus in Shanghai’s Jiading District. Due to the shutdown of provincial crossing, she was unable to turn out for work. However, thanks to the long-distance commuting permit issued by the Jiading district government, she is now at work with the help of her company, after a 14-day home isolation. “In my company, another five employees like me have all obtained the permit and come back to work,” said Yu.

Confidence in Chinese market

In Waigaoqiao, a bonded warehouse of the logistics company C.H. Robinson is also back to its busy state. Located in the Shanghai Free Trade Zone, it boasts a transportation network that covers the Eastern part of China and even stretches to the entire country. As of Feb. 28, “the transportation capacity in the Central China region has been restored to 50%, and we are doing our best to ensure the smooth, safe and stable transportation of the stored goods,” said the company.

“We have full confidence in the Chinese market,” said the company. “Despite the recent decrease of exports, the shipments will recover with factories’ gradual resumption of work. We know the demands for logistics will rise rapidly after the economic recovery, especially in the semiconductor and high-tech industries, as well as e-commerce logistics. All employees of C.H. Robinson will work hard to meet our customers’ demands, and together, we will strive for a recovered market.”

(A warehouse of C.H. Robinson in Waigaoqiao)

With the steady resumption of work, many foreign companies have instilled strong impetus in production. On Feb. 24, the first car rolled off the production line after the restart of work in SAIC Volkswagen’s JV Anting Plant. So far, the company’s production bases in Yizheng (in Jiangsu province), Ningbo (in Zhejiang) and Changsha (in Hunan) have also resumed production. Staff in R&D, quality assurance, procurement, security and other departments have all returned to their posts and are ready for the rapid restoration of production.

Zeiss, another multinational whose Greater China headquarters is in Shanghai, also looks forward to the post-epidemic growth. Now, all companies under Zeiss China have restarted work, including five production bases across China, with R&D capability 100% restored. “Due to the differences in prevention and control measures in different regions, it may take some time for the supply chain to fully recover. But we are optimistic. By March, all the factories’ production capacity will be expected to have been restored to 100%. Zeiss will continue to cultivate the Chinese market this year, as we believe after the epidemic, the Chinese market demand will soon recover and bring new opportunities for growth,” the company said.

(A plant of Zeiss Industrial Metrology in Shanghai Free Trade Zone)