SCIO briefing on the efforts to support the coordinated and orderly resumption of industrial chain operations

The State Council Information Office held a press conference Friday morning in Beijing to introduce the works of the Ministry of Industry and Information Technology and the China Banking and Insurance Regulatory Commission to support the coordinated and orderly resumption of industrial chain operations. March 18, 2020


China is one of the world's largest auto makers and auto markets. And Hubei province is home to numerous suppliers of auto parts. Reports indicate some overseas auto manufacturers have been forced to suspend production due to lack of the car parts. So what measures will be taken to support the resumption of the whole automotive industrial chain? Thanks.

Xin Guobin:

Thanks for your question. The auto sector has a long industrial chain that covers a wide range of areas and exerts an enormous impact on other fields. It's a typical international industry. China's auto manufacturers need to import some auto parts from the international market, and multinational enterprises also need to import auto parts from China. We know that each car has tens of thousands of parts, and each company has hundreds of tier one automotive suppliers and thousands of tier two and three suppliers. Hubei province is China's fourth largest automobile production base. In the process of epidemic prevention and control, some multinational enterprises, such as Volkswagen, BMW and Hyundai Motor, reported that some of their car parts were usually made in Hubei province and there was a shortage in stock. And these companies will face the risks of suspending production if their suppliers are unable to resume production and operation in time. Some domestic car makers also have suppliers in Hubei province. For example, among over 400 auto parts suppliers of Guangzhou Automobile Group, 156 are located in Hubei. To overcome such difficulties, the Hubei provincial department of industry and information technology worked with the companies to dispatch relevant inventory to meet production needs. Hyundai Motor, the South Korean multinational automotive manufacturer has wire harnesses manufactured in both Hubei and Shandong provinces. The company had to halt production due to a short supply of wire harnesses. To fix that problem, we worked with the departments of the related provinces to prioritize the resumption of work at the wire harness manufacturers. Now, Hyundai Motor is back on track of normal production and operation.

In addition, as the epidemic has been effectively contained in Hubei, we should put the resumption of work and production on the propriety agenda. We have already made contacts and communicated with the Hubei provincial joint prevention and control mechanism, the provincial department of industry and information technology, and the prefecture-level cities of the province. We plan to give priority to the resumption of auto parts manufacturers, which has also earned great support from the CPC Hubei Provincial Committee, the Hubei Provincial Government and the Hubei provincial joint prevention and control mechanism. Auto parts manufacturers in Hubei now are resuming production in an orderly way. For example, Dongfeng Motor Corporation is located in Hubei province, and most of its automobile production enterprises and auto parts suppliers are located there as well. So, Dongfeng was hit hardest by the outbreak. However, its truck production base in Shiyan city has already resumed work and production, with a daily output of more than 200 vehicles. Some auto parts manufacturers in Xiangfan city have also resumed work. Two passenger car manufactures in Wuhan city have resumed production, including Dongfeng Honda and Dongfeng Motor Corporation Passenger Vehicle Company. 

With combined efforts, we will forge ahead with the resumption of normal operations in China's automotive industry in an orderly manner. That will play a pivotal role in stabilizing the global supply chain. We will work to follow the resumption process of these companies, help them to solve any problems they may encounter promptly and ensure a stable global supply chain. Thanks.

Hu Kaihong:

That concludes today's press conference. Thank you, Mr. Xin and Ms. Yang. Thank you all.

Translated and edited by Wu Jin, Fan Junmei, Li Xiao, Wang Yanfang, Li Huiru, Lin Liyao, Zhang Junmian, Yan Xiaoqing, Zhou Jing, He Shan, Duan Yaying, Wang Qian, Wang Yiming, Wang Wei, Zhang Rui, Cui Can, Yuan Fang, Mi Xingang, Yang Xi, Zhang Liying, Guo Xiaohong, Wang Zhiyong, Zhu Bochen, Huang Shan, Jay Birbeck, Laura Zheng, David Ball, Geoffrey Murray. In case of any dispute over a discrepancy, the Chinese version is deemed to prevail.

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