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Multinational companies are not planning to leave the Chinese market because of problems associated with the pandemic COVID-19. And some are located in the PRC factories global giants even demonstrate record performance and launch new investment projects.

In particular, record production after the outbreak of the coronavirus epidemic was shown by the manufacturing plant of the American company for the production of microchips Micron Technology in Xi’an (Shaanxi Province). Manish Bhatia, executive vice president of global operations, said this: “The chip packaging and testing plant has been operating at full capacity since January. The local government has helped us a lot in maintaining production. None of our employees were infected with the virus. We we really appreciate them, during the outbreak of the coronavirus epidemic, all plant employees continued to come to work and ensure continuous production at the highest level. This is truly an exemplary figure. ” The company does not plan to change its strategy in China, added Bhatia.

Toshiba is just one of the foreign companies that have benefited from the huge market of China

The country is making steady progress in improving its business environment. Global managing Director of consulting company Roland Berger Denis DEPA drew attention to the fact that China boasts a robust industrial system, efficient infrastructure, advanced technology and a rich talent pool that ensures an incomparable market for companies with foreign investments. According to estimates by Roland Berger and the French business school em Lyon, over the last five years the American Corporation Apple and Intel and Finland’s Nokia has achieved a 60% growth in their revenues in China. “Today, when there is a growing trend to antiglobalization, China still aims to offer more opportunities to companies with foreign investment, improving its legal framework and expanding access to markets, significantly increasing the confidence of foreign investors,” said Denis DEPA.

A sign of the recovery of China’s economy after the outbreak of the epidemic can be called the beginning of construction in Huizhou (Guangdong province) chemical complex oil and gas Corporation Exxon Mobil. It started on April 22. Complex with a total investment of about $ 10 billion will be built in two phases. The first phase, with the ethylene cracking and production of products further processing, should be completed by 2023, when construction will begin on the second phase. The Chairman of the Board of Directors and CEO of Exxon Mobil Darren woods said that the company will continue strategic long-term investment in the country, as China supports foreign direct investment and stimulates innovation.

On the formation of global supply chains, which ensure efficient circulation of goods and services took decades, said the representative of the Ministry of industry and information technology of the PRC Juan Libini. “Well-planned industrial system of China and robust infrastructure give us confidence that we will keep the foreign company in its market. We will also work harder to create a favorable environment for doing business and offer them better services,” he said.

According to a recent report by the American chamber of Commerce in China and American chamber of Commerce in Shanghai, 68 percent of American companies expect return to normal activity in China less than three months. “Unlike some global predictions, our data show that most of our members are not going to leave China in the near future”, – said the President of the American chamber of Commerce in China Alan Beebe. Some companies in certain industries, according to him, can diversify their activities outside China or even to expand production capacity in the United States, given the current situation. But it is “costly, time-consuming and largely irreversible process,” he said.

China is ahead of the global curve when it comes to restarting the economy

“China is ahead of the global curve when it comes to restarting the economy after months of slowing, and many of the reasons why companies are interested in the Chinese market, remain in force today,” added Alan Beebe. Decisive action by the Chinese government on the outbreak of the coronavirus also caused the approval of foreign companies and strengthened their confidence in the country.

The President of Intel China Yang Xu said that the company’s plants for the production of chips in Dalian (Liaoning province) and Chengdu (Sichuan province) have worked without interruption during the period of the outbreak. “We shared anti-epidemic the experience of China with our global production sites in other regions,” said Yang, adding that China and the United States are the engines of the global economy over the next 20-30 years. According to Jan, the Intel has a sustainable long-term development strategy in China. The recent focus of China on a new infrastructure, including base station 5G and data centers also will provide new opportunities for foreign companies, says the President of Ericsson China Zhao Csonto. “Flash will not change China’s position as an important part of the global supply chain”, he concluded.

Source: Russian newspaper

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EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure will not be perfect.

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