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China's Government Encourages Local Consumption Instead of Export | Israel today

2020-04-11T21:19:05.967Z


economy


The Chinese are not attacking the markets for now, and returning to the routine turns out to be an easy task. • Many products are likely to be costly due to a shortage of raw materials • The South China Consul, Peleg Levy: "They remember well who helped them - and help us"

  • Photo: AFP

Beijing has already internalized that they cannot wait for a complete liquidation of the Corona before returning to normal, because the downtime may be unbearable.

Already on March 29, China discovered that more than 429,000 businesses had gone bankrupt, or continued their operations even after the restrictions were lifted. In mid-March, the proportion of small and medium-sized businesses returning to normal was about 60%, while at the end of the month - about 77%. This is according to data from the Beijing Ministry of Industry.

First the restrictions were removed from the energy companies, and within a short time many production lines were converted to the new economic missions within a few days. Major automakers, such as GAC, which began selling electric vehicles in Israel, have converted 50% of the production lines to manufacture corona masks and kits. Companies engaged in medical manufacturing have converted the production lines to virus detection kits, and have also begun to focus on the manufacture of specialized drugs for the treatment of corona.

Authorization is not enough for a reopening of the factories. Following the epidemic, the Chinese Ministry of Health has implemented new regulations, such as ventilation, disinfection and worker protection equipment. The Israeli consulate in southern China, led by Consul Peleg Levi, made sure to work with the authorities to expedite the opening permits for Israeli-owned enterprises.

Alongside the openness of the factories, we try to do everything possible to prevent a second wave of infection in the country. The heat tests at the entrance to the factories and the walking with the mask are ongoing and it is estimated that the prevention routine, such as wearing masks and measuring the heat at the entrance to public places, will continue in the next four months. Although the roads are crowded and people walk the streets, the international fairs that were a routine issue do not return to normal, along with many industries, such as tourism and restaurants, which continue to be damaged.

But China is determined to save its economy and the collapse of business. A series of mitigating measures have been introduced, such as approval for the rejection of social security contributions for employees. "My team wants to stay and keep going. We all believe we will go through the difficulties together," Xinhua News Agency Ho Chunlay, owner of a restaurant in the Liaoning Province capital, Shenyang, told the news agency.

quid pro quo

The decline in exports from China has led the administration to encourage domestic consumption, meanwhile, without much success. Another concern created by Beijing is the expected shortage of raw materials in both the heavy and high-tech industries over the next few weeks, which itself started to emerge from the crisis with a 11.6% drop in the first two months of the year to 800.8 billion yuan (about $ 114.4 billion). Of course, the shortage of raw materials, which may slow down Chinese production lines, is also likely to lead to an increase in products in Israel and worldwide.

This epidemic has heightened tensions between the US and China. "We must not allow China to control a supply chain in any industry," he said in an interview with Fox News Republican Minority Leader Kevin McCarthy.

Israel, in contrast to the US, benefits from the economic tension-free relationship with China. One such example is the joint operation with the Ministry of Defense, the Foreign Ministry, El Al and ICL, in which 11 airplanes were sent to China to bring millions of essential medical equipment items to Israel. .

"A fight that is jungle"

The task of "putting hands" on Chinese goods rests with the Israeli delegations in China, and in particular on the consulate in southern China - an area which is the "factory" of the giant state. "The struggle for Chinese goods between the countries is a jungle," Israel's consul in southern China, Peleg Levi, told Israel Today. He says, "We are in the field, that's our job. Starting from checking if a plant has a way of helping aircraft landings to physically reaching goods."

The consul notes that Israel is not in a serious crisis. "We're not big buyers and that works to our advantage," Levy explains. Beyond that, "China's relationship is good and it serves us. All procurement is officially done between the Israeli embassy in Beijing and the Chinese Ministry of Industry - which allows us to purchase the best goods. Unlike other countries that found themselves with no useful equipment, Israel did not Purchased from all of the following and is still one of the few countries in the world not to fall into sting exercises. "

Remember, Israel was one of the first countries to make supplies to the Chinese - while they were deep in the Corona crisis. "The Chinese do not forget, now we are receiving medical equipment donations back," Consul Levy adds, "These are the amount of tens of thousands of masks and protective equipment, along with financial contributions to hospitals in Israel. The donors, most of the time, have received donations from us two months ago and are now giving back." .

Source: israelhayom

All news articles on 2020-04-11

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