iDG2022-03-23 10:45:16
Equal emphasis on epidemic prevention and production, making use of policies and seeking survival, smoothing industries at upper and lower reaches while ensuring operation…This has been a picture reflecting the experience of Dongguan’s foreign trade enterprises in the past two years.
As key players of Dongguan’s foreign trade development, Dongguan’s foreign trade enterprises have experienced shocks and waves resulting from the impacts of the COVID-19 pandemic and the challenges posed by unilateralism. Nevertheless, as epidemic prevention and control advance smoothly in China, benefits of policies and measures for stabilizing foreign trade keep releasing. Through arduous efforts, foreign trade entities are finally greeted by the spring blossoms. From January to February this year, Dongguan’s imports and exports value reached 213.36 billion yuan, up by 4.9% year-on-year, ranking first among Guangdong Province’s top 5 cities in growth speed of total value of imports and exports.
Crisis and opportunity are dialectic. Hit by the COVID-19, foreign trade enterprises have been seeking survival under policy support and self-salvation. However, crisis also means opportunity. During the pandemic, Dongguan foreign trade enterprises have deeply realized the importance of improving core competitiveness of enterprises and the ability to guard against risks. Their risk awareness, innovation awareness and global awareness have become stronger.
Combination of static and dynamic
Equal emphasis on epidemic prevention and production
On March 21, slogans of epidemic prevention and control were almost omnipresent inside Guangdong Lingyi iTECH Manufacturing Co., Ltd., a leading enterprise in global telecommunication field. More than 7,000 employees had removed from the rental housing outside the factory and moved to the dorm inside the factory. The company had also specially arranged form for pregnant employees. Outside the factory, several trucks were about to deliver a batch of semi-finished products across the country. The person in charge of the company told the journalist that the factory was now gearing up production for orders of the first quarter and Huangjiang factory witnessed steady growth in terms of the number of orders in the first quarter.
On March 20, 500 cartons of components of electric toothbrushes for export were delivered from the suppliers at the upper reach from Dalang Town and Changping Town to Guangdong Roman Technology Co., Ltd. Some have been sent to the production line for assembly. “These are foreign trade orders with a long detention time covering three or four million yuan.” Yi Shengli, the company’s warehouse manager, expressed that under the impacts of the pandemic, the company now has a tight schedule for shipment. “Through coordination of the government department, the goods were finally delivered. The goods were delivered to the production line with measures on epidemic prevention and control being ensured.”
The “super factory” of DeRucci Group in Houjie Town is now in full swing. In order to ensure normal delivery, DeRucci has placed equal emphasis on epidemic prevention and production. Closed-off management was carried out in the factory, and the company also asked all the staff to sign the letter of commitment for the post.
Inside the cell workshop of Dongguan Amperex Technology Limited arose sounds of roaring machines. It is learned that the company had already put in place relevant coordination and arrangement before the outbreak of the pandemic. When the pandemic hit, the company was able to manage it well with rapid and orderly response.
Inside the production workshop of Dongguan Dailywin Watch Co., Ltd., a Hong Kong-invested enterprise in Fenggang Town, multiple production lines were up and running at the same time. During the pandemic, the company had closely followed the deployment of epidemic prevention and control both at the city and town levels and timely adjusted the company’s instruction for epidemic prevention to ensure work in epidemic prevention and production. The company’s number of orders in the first quarter increased by 15% year-on-year, and the growth of revenues from main businesses is expected to grow by 20%.
Employees of Dongguan Rifu Fiber Technology Co., Ltd. in Tutang Village, Changping Town, were wearing masks and maintaining a safety distance of 1.5 meters, busy operating the fast-running machines. “This year, the number of orders is expected to grow by 10% with the sales revenues reaching 200 million yuan.” Zhang Qing, Manager of the company’s Business Department, is full of confidence in accomplishing the company’s production target this year, “Efforts will be made to continue strengthening epidemic prevention and control and improve capacity to catch up with the time and orders delayed due to the pandemic.”
Lung Cheong Digital, a Hong Kong-invested company in Changping Town, is also accelerating production. “Lockdown of Changping Town was lifted on March 20, the employers were very excited. The factory is now making all-out efforts to promote production,” said Liang Zhongming, General Manager of the company.
Government-Enterprise Collaboration
Preparing for a rainy day and collaborating to stabilize enterprises and supply chain
“Thanks to communication and coordination of government of Fenggang Town, we managed to ship our goods to Hong Kong in a timely manner.” Liu Ren, General Manager of Dailywin Watch, told the journalist.
“We have received notice from China Council for the Promotion of International Trade Dongguan City Committee, asking whether we need the help of issuing ‘proof of force majeure’. Though it’s not financial assistance, it cheered us mentally,” said Liang Zhongming, General Manager of Lung Cheong Digital.
“Dongguan Bureau of Industry and Information Technology had issued vehicle permits for factories with urgent needs, which ensure our timely delivery to clients and receiving of raw materials needed for production.” According to the person in charge of Lingyi iTECH, the rapid logistics of Dongguan’s factories was attributed to the joint efforts of government departments at various levels in Dongguan.
Issuing 13 “proofs of force majeure” for enterprises involving contract value of about 26 million RMB; releasing “Dongguan Industrial Enterprises’ Epidemic Prevention and Control Work Guidance” to 197,000 industrial enterprises; posting nearly 100,000 messages warning of epidemic prevention to people in charge of Dongguan’s key enterprises; issuing 3,086 vehicle permits for logistics transport vehicles for 216 key enterprises; extending key support to enterprises needing bailout and expansion of production and operation in the affected towns and districts (industrial parks); there are 95 newly added application on the “financing platform for SMEs” in March alone with the financing exceeding 62 million yuan…
Behind the statistics are collaboration of government and enterprises in stabilizing enterprises and supply chain.
What merits attention is that the journalist also felt in the interview that the key why Dongguan’s foreign trade enterprises were able to carry out production in a timely manner within a short period of time is that enterprises not only collaborated with the government but also conducted scientific epidemic prevention for a rainy day.
“We have accumulated experience for the epidemic. Before this outbreak, we have prepared the raw materials two weeks in advance. We were not badly hit by this outbreak because of the preparation,” said Liang Zhongming, General Manager of Lung Cheong Digital.
DeRucci Group, on the other hand, had released prediction plan for long-term materials supply in advance. It had coordinated with the supplier in rapidly adjusting frequency and time of delivery in accordance with market fluctuation and epidemic prevention and control policies during the pandemic. It also had flexibly adjusted the time of production, optimized safety reserve of various materials, and prepared stock by cutting peak and filling valley.
Amperex Technology Limited even established a mechanism for information feedback. During the preliminary judgement, the company had arranged 900 employees working with R&D and sales to work from home, 3,500 employees working with production to stay in the factory. In this way, the research personnel were kept in the periphery to reduce density; on the other hand, the resources saved would allow the company to make faster and better response and arrange fast production. Meanwhile, the company had also integrated statistics of cases in certain places to predict severeness and the amount of resources needed to make fast warning for changes in the supply chain.
Moreover, aside from ensuring operation, some enterprises also worked with industries at the upper and lower reaches to jointly stabilize the supply chain. During the pandemic, apart from implementing epidemic prevention and control, Dailywin Watch also exerted unified management on about 200 employees of three suppliers in the industrial park. Liu Ren expressed that only by “huddling together” can we put in place epidemic prevention and control and ensure sustainable development for enterprises.
Turning crisis into opportunity
Enterprises are actively innovating with a strengthened risk awareness
Most foreign trade enterprises had similar experience in 2020 and 2021 with low starting and high ending and transformation of crisis into opportunity. Foreign trade enterprises had sought survival amid adversity and brought about a turn-around just over a year, which has contributed to growth amid adversity for Dongguan’s foreign trade in 2021 and also accumulated experience for themselves in the new round of outbreak.
The “test” presented by the COVID-19 pandemic allowed foreign trade enterprises to realize the importance of strengthening ability to prevent risks, allowing them to focus more on weak links existing in aspects such as products, management and operation. For enterprises, this represented an arduous process to cope with external challenges and a profound process to know, evaluate and plan for themselves.
In addition to pursuit of “stability”, many visionary foreign trade enterprises are also building on the momentum to accelerate transformation and lay foundation for long-term development. Some enterprises are starting to shift their focus from overseas to equal emphasis on both domestic and overseas market. For instance, some enterprises are looking for ways to create their independent brands, some are increasing proportion for domestic sales and some are accelerating comprehensive global deployment.
For instance, on the basis of ensuring epidemic prevention and control, Dailywin Watch also developed watch and jewelry business department to expand lines of business and increase sales at home. Liang Weihao, president of the company, also started live streaming commerce in person to increase brand awareness at home.
With a strengthened risk awareness, foreign trade enterprises take a more active part in innovation activities. Many foreign trade enterprises believe that competitiveness of the company can be effectively improved only by increasing investment in innovation, standardizing management mechanism, improving technology proportion in products and adjusting market operation strategies.
Amperex Technology Limited, for example, though a top industry player in terms of market share, still expressed efforts to continue ensuring reserve of talents equipped with multiple skills, accelerate application of technologies such as digital and manufacturing execution system (MES) import, explore lean production in-depth and speed up transformation and upgrading. DeRucci Group, also an industry leader in digital production, expressed in the interview with the journalist that the production line of the company’s intelligent manufacturing factory is now undergoing further iteration, and moving toward deeper digitalization to improve efficiency.
Crisis and opportunity coexist. There is no denying that the crisis has made many foreign trade enterprises suffer a lot. Nevertheless, through the crisis, the enterprises have developed broader perspective, strategies of longer term and more flexible measures. Many foreign trade enterprises are pushing forward innovation and upgrading with greater speed and strength to accelerate metamorphosis.
“We should not underestimate the difficulties, waver in confidence and slack in work.” Dongguan’s foreign trade enterprises, as players in the “World Factory”, have experiences winds and waves. Just as Tan Rongbo, President of Dongguan Nanxing Plastic Co., Ltd. put it in the Moments of WeChat, “Only by embracing imperfection in life can be weather the ups and downs in the world”.
After endless mountains and rivers that leave doubt whether there is a path out, suddenly one encounters the shade of a willow, bright flowers and a lovely village. Foreign trade enterprises will reap more wisdom and ride the waves by accumulating experience and moving forward.
Planner: Yu Qingping
Executive Planner: Yin Changsheng, Sun Benyuan
Interviewed and written by Cao Lijuan, Chief Correspondent
Script by Cao Lijuan, Chief Correspondent; Pictures by Zheng Zhibo; Video by Yang Zhihong; Edited by Zhang Dongchang
