Would coronavirus destory China as the world factory?

Since the outbreak of coronavirus, China, the world biggest factory has been going through the overwhelming hit on economy, which caused the huge concern to other countries across the globe.

Would the coronavirus affect the China manufacturer or world economy? The answer is absolute yes, After the virus broke out, almost all walks of life have been in lockdown except those necessary fields which people cannot live without like supermarket, vegetable market etc, it drove China economy to the ground with no doubt and it’s expected that it may take years to recover comprehensively.

But how would the virus affect manufacturer? Since it happened, all factories were closed and this hasn’t stopped so far, without supply, it not only hit the domestic economy, but also affected the world economy, yet, it is only short-term changes, in long run, this will make a positive difference to China manufacturer and benefit the world economy, how？

1. Due to depression of economy hit by virus, the competitive power will go severe, those companies who don’t have a strict standards or follow the rules will be kicked out of the market, as a consequence, the China manufacturer will be much better than ever.
2. After the outbreak of virus, a hospital in Wuhan was built within 10 days, it has never happened in any other countries, some people concerned that China as the world factory would be replaced by India or Vietnam. Let’s take a look: considering labour cost, industrial regulation, transportation, efficiency. Compared with another 2 countries, Chinese labour cost is a little higher than what other 2 nations are; Speaking industrial regulation, most of factories in China locate in coastal areas like Ningbo, Yiwu, Shanghai, Shenzhen, all these cities are developed regions which are ahead of almost all Indian or Vietnamese areas, so the production environment and standard in China is more prior; Speaking of transportation, Shanghai, Shenzhen and Hong Kong have way busier airlines than what India or Vietnam has, so it can guarantee and save International delivery time; As for efficiency, the Huoshenshan hospital has fully proved how efficient and capable China is. Therefore, aside from labour cost, China’s position will not be replaced by others, at least in the next few years, this won’t change.

So China as the world factory, the position won’t be changed, and it’s expected that it will improve themselves and be more competitive to bring the good products to feed the world.

Like electric gift trade business, our customers are across the world from east to west, they are anxious and concerned how long would Chinese suppliers need to turn on the machine and help them? They are worried their supply chain would break off, in fact, we had the same concern in Jan, but we tried so hard to be back and we are back now, except our custom products are still working on, all other normal products are available to provide, since our abundant stock before and our timely reply during Chinese New Year holiday and virus in such a difficult time, it didn’t make too much difference to our customers and some of the orders were already delivered to their hands, as a result, there’s no worry about supply, you’re free to go on our website or come to us for all your needs.