Dongguan resumes production, and to maintain high-quality growth

The number of new confirmed cases of the coronavirus (NCP) on the Chinese mainland outside Hubei province, the heart of the epidemic, has been decreasing from Feb 2nd to 10th. At the same time, more patients in Guangdong have been cured and discharged from hospitals.

Dongguan, once called ‘the world’s factory’, is a major hub for the manufacturing industry. According to statistics, by February 10th, 4491 enterprises in Dongguan, which are mainly in the manufacturing and service sectors had resumed production.

A series of supportive measures by the central, provincial and municipal governments have been put in place to help enterprises and their workers overcome the difficulties caused by the epidemic. For instance, the municipal government is offering help to  enterprises that cannot afford the social insurance premiums. It is estimated that over 1.21 million employees from those enterprises will receive a total of over 168 million yuan in subsidies.

In the meanwhile, Dongguan has launched a special online platform to provide recruitment information for 83,000 positions in over a thousand enterprises, including a special column for positions related to epidemic prevention and control supplies, which will greatly promote recruitment for key enterprises.

The epidemic will impact Dongguan’s industrial growth in the first half year to a certain extent, especially in the first quarter, estimated Liu Jintang, deputy director of Dongguan’s industrial and information Bureau. But in the long run, Dongguan will still maintain high-quality economic growth.

The delay in resuming production will affect production schedules for many enterprises. The number of employees may decline, bringing recruitment difficulties, said Liu. Due to the overall impact of various factors, consumer industries like catering services and entertainment will be greatly affected.

Liu also pointed out that the temporary restraint in the market will result in a bounce for all industries after the epidemic. In addition, the epidemic will spur new businesses. New market opportunities will spring up in industries like health care, online food delivery, cloud-based offices and online education.

After the epidemic, consumption and investment will recover, and the city will see an economic rebound, said Liu.