In this factory in Canton, in southern China, which specializes in the manufacture of furniture for export, producing has become a daily headache. With the restrictions linked to Covid-19 in the region, the delivery of raw materials has become uncertain, laments the boss of the factory: “The transport of materials is a problem, explains a manager. For example, Dongguan was locked down in April, all of our materials could not be delivered.”
“With the health restrictions, the trucks were not allowed to enter the factory. We no longer have the means to organize production in the normal way as before.”
the boss of a Canton furniture factoryat franceinfo
The turnover of this factory has already been divided by three since the start of the pandemic. The zero Covid policy and the serial confinements decided by the authorities – including that of Shanghai, particularly drastic, sparked an unprecedented wave of protest – are causing the Chinese economy to suffer. In April 2022, exports grew by only 3.9%, the weakest pace for nearly two years. Industry is the first victim. Large companies are affected but also many SMEs.
In addition to supply difficulties, there are recruitment problems. Like in this foreign company that produces mechanical lathes in northern China. Impossible every morning to know how many workers will be present, says a manager: “Most of our workers live in Hebei Province [à l’Est], they come to work at the head office in Beijing or at our assembly plant in Tianjin. With the epidemic, some can come, but others cannot, because they are in quarantine. It’s becoming the norm.”
“There are also employees who cannot come to work because their health QR code no longer works. That, in addition to logistical problems, there is a real impact on our production.”
the manager of a company in northern Chinaat franceinfo
The Canton furniture factory used to show its production at the great annual fair in the port city. But the face-to-face event was canceled this year and foreign customers are starting to go elsewhere. “I hope our foreign customers can come to China soon, explains the owner. Today, because of our situation, they prefer to buy in Vietnam or Indonesia. My clients from the Middle East tell me that they have been to Turkey. Even if the furniture there is a little more expensive, there are no sanitary restrictions. Because before buying, they want to see the products. Video conferencing is not enough, they don’t blindly trust us.”
Under these conditions, the risk for China is that it will not be able to meet its ambitious growth target for 2022 at 5.5%.