MNI INTERVIEW: China,Japan,Korea Need Supply Chain Cooperation

By Wanxia Lin

     BEIJING (MNI) - China could consider broader coordination with Japan and

South Korea to safeguard supply chains disrupted by the coronavirus outbreak,

Wei Jianguo, former vice minister of commerce, told MNI in an interview on

Wednesday.

     "The three countries could strengthen communication on their production

chains, supply chains, and consumer markets, as well as share information about

epidemic control," said Wei, now vice chairman of the China Center for

International Economic Exchanges.

     Although production is resuming across China as new cases of the virus

decline, outbreaks in both Japan and Korea could cause additional disruption

given that these two countries supply more than 50% of electronic materials and

around 30% of electronic components and equipment for China.

     "It is very difficult to find new suppliers in the short term," said Wei.

     Temporary coordination led by governments involving customs,

transportation, quarantine and health departments could help manufacturers in

all three countries better match their supply and demand to minimise the

epidemic impact, said Wei, who believes big data will play an important role in

the effort.

     --SMALL MANUFACTURERS

     Wei still sees Q1 growth at around 5% and full year growth hitting target

if most manufacturers return to production in March, although he estimates it

will take another three or four months for domestic manufacturers to resume full

capacity.

     "We can still achieve 6% growth this year," said Wei.

     Factories in Zhejiang province have booked aeroplanes and buses to collect

migrant workers from their hometowns, while the resumption of over 90% of

central government-owned producers will ensure supply of raw materials, helping

the whole chain, he said.

     Small and medium-sized manufacturers should also better coordinate their

production, helped by government, to avoid losing orders and markets, said Wei.

Companies should be encouraged to tap into markets which have not been affected

by the virus to obtain new orders, or switch production to meet demand for

masks, disinfectant and medicines. 

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI London Bureau; +44 203 865 3829; email: jason.webb@marketnews.com

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