Coronavirus (COVID-19) — China Manufacturing F.A.Q.
A ‘what to do’ when it comes to manufacturing your product in China.
Michael T. Osterholm (author of Deadliest Enemy) spoke regarding the recent coronavirus outbreak on ‘The Joe Rogan Experience’ Podcast: “My job is not to scare you out of your wits; it’s to scare you into your wits.”
He also said, “This is not coronablizzard, this is coronawinter.” This is not an issue that can be swept under the rug and quickly forgotten. We will likely not have a vaccine tomorrow and we will have to deal with this. It’s a big deal, but I believe if we keep our wits about us and don’t go hysterical as a world, we’ll deal with it over time.
Please remember that in previous centuries that these issues were not prevalent international conversation topics. They couldn’t be. Today, however, we have social media. The last person I would want to receive coronavirus advice from is my cousin’s friend’s roommate. This article is not about advice…it is my opinion on the situation regarding doing manufacturing and business in China.
While I am far from an expert, living in China and running a business here has led to countless hours of reading and research on the outbreak that has affected almost everyone I know. This coronavirus is not something to be taken lightly. Precautions must be taken. But I believe that if those precautions are setup globally, not only is there a light at the end of the tunnel, but there is optimism now to excel where others fade in fear.
Certainly, the virus originated in China. Sure, China could potentially have responded quicker to the initial outbreak in Wuhan. However, I cannot speak highly enough in regards to my feelings towards living in China and the incredible response that they have made in facing this outbreak.
Unfortunately, we live in a world full of clickbait. Clicks, views, and ads make money. Videos of zombies running rampant in Wuhan are more likely to appear on your Facebook wall than videos of the Chinese government figuring out how to deal with this virus in an efficient manner. I have boots on the ground here, I speak fluent Mandarin and have many friends and colleagues who have also had to make extreme changes to their lives. I would think that because of this, my opinion of the way things have been handled would be more valuable than some idiot reporter who has never even been to China.
So here goes…
I’ve seen the process first hand and the fact remains that China has done as good of a job as anyone could have been expected to regarding the containment of the virus.
I am the CEO of MorphoMFG. We are a CM (Contract Manufacturer) who specializes in helping international businesses manufacture their products in China.
The overwhelming majority of our customers have asked us questions regarding how this will affect their product, their supply chain, and the future of their business. While the coronavirus is certainly a real threat and it shouldn’t be taken lightly, I’d like to put some commonly discussed concern items to bed so that business can proceed as usual, because it certainly is close to being as such within the borders of China.
Q: What is the current status in China regarding the coronavirus?
On the up and up. The Chinese government and its citizens have taken the threat of this virus extremely seriously. From the internationally covered quarantine of at least 56 million to the travel restrictions put on up to 1 Billion, the government made an almost immediate effort to stop the spread. While some may say that their initial response could have been much quicker, the follow-up lockdown has been done impeccably. Due to this response, it seems as though things are cooling down quickly. Furthermore, China’s aggressive response has bought the rest of the world precious time to prepare. Business has had some intense regulations as things get back underway, but the Chinese are an extremely ambitious and industrious people. Their willingness to fight through this has been impressive, to say the least. Restaurants, barbers, retail shops, and more are all starting to open. I expect that by the end of March that most operations within China will be as smooth as usual.
Q: How is it living in Guangzhou, China today?
The streets are relatively empty because Chinese citizens are fantastic at listening to the counsel of their government. Because of that, China has seen massive improvements and a downtrend for both new cases as well as deaths. With this collective effort, normal life is all but back to normal!
Mandatory mask-wearing and temperature screening at all entrances to buildings are common but people are back on the street and getting to work!
Guangzhou, China coming back to life quickly (dude in red needs to pull up that mask though!)
Q: Are Chinese numbers reputable? Is the situation actually getting better?
While I can’t be 100% certain as I wasn’t involved in putting those numbers together, I can tell you this: Chinese social media makes Western platforms look like child’s play. If there were HUGE problems in China, we would know about it. Videos are often taken out of context and made to be something they are not. I believe in the Chinese government’s ability to handle this situation. Seeing as they are the epicenter of the virus and have received blame internationally both from uncouth mouths and reporting channels, why lie? Their economy has already ground to a halt. What more do they have to lose? What exactly would lying about the numbers serve?
While I can’t give you the details, I can give you a prediction. This matter is all but contained in China. China has already started quarantines on all incoming traffic from ‘high-risk’ countries. Other countries simply are not suited to deal with this matter as well. I fear that there will be larger issues outside of China than inside their borders going forward. I hope that the world follows suit and this is solved internationally as soon as possible.
Q: Will my business be ruined?
I’m a big believer that all businesses can find ways to survive trivial times. If you are talented enough and can find a way to sell your services or products through this crisis, you will find a way to do so. If you are not, then you will probably have issues.
Remain vigilant on your end and develop your business because Chinese manufacturing will not be your bottleneck!
Q: When will Chinese factories begin working again?
The majority of our entire supply chain, approximately 1000 factories in our approved audit network, is already operating normally. While the virus breakout occurring during Chinese New Year (CNY) created a vortex of possibilities for spreading (CNY is the largest human migration in the entire world), it also allowed for a fairly smooth transition. Every CNY there are hundreds of millions of people who return home for the entirety of the holidays. This mass migration makes it a very difficult situation for factories. Employees know that they can get a job at any factory they want and factories don’t want to fire their employees. Because of this dynamic, the CNY celebration goes on for over a month. This year the official holiday (7–10 days) was officially extended for another week. With or without this extended holiday / virus the reality of the situation is that China usually doesn’t get back up to full speed for at least a month after CNY.
Q: What if Trump and the U.S. government don’t allow Chinese products into America?
Tariffs are one thing. Complete elimination of all Chinese products is impossible. As societies develop, they move away from production and manufacturing towards services. That happened with the U.K. and is now happening in the U.S.A. The reality is that making most products in America these days is not realistic. Never mind price and timing, there are tons of products that literally cannot be manufactured in America (or most Western countries for that matter) due to the lack of factories, tools, and equipment.
Q: Will there be delays in mass production deliveries?
The short answer is YES. I’m not going to sit here and tell you that China and business influenced by it are perfect already. This is a very serious threat to both China and the rest of the world. Having said that, China is on it. The factories have no interest in being closed and have already begun the post-CNY structure. I would expect delays, but, if you have a reliable partner the most important aspect of your business, re: supply chains, is calculating accurate timelines. If your partner can provide reliable timelines for your business, that will allow you to deliver ‘on time’.
*Shameless MorphoMFG plug* — Why? Cause it’s my article.
Q: Should I come to China to inspect my goods?
I wouldn’t. Why would you?! Just make sure you have a solid partner on the ground to ensure everything is going smoothly (no different than any other time in recent history IMO).
*I have a biased interest in MorphoMFG making your products
Q: Can products shipped from China carry the virus? Should I disinfect my product in China prior to shipping?
Short answer: No. But, I’ll refer to the experts on this one for their more educated opinions:
1) “There’s no evidence that there’s been spread from infected mail or packages,” said Michael Merson, a dean’s special adviser at the New York University School of Global Public Health.
2) “In general, because of poor survivability of these coronaviruses on surfaces, there is likely very very low risk of spread from products or packaging that are shipped over a period of days or weeks at ambient temperatures,” Dr. Nancy Messonnier, director of the Center for Disease Control’s Center for Immunization and Respiratory Diseases, said in a Monday morning press briefing.
3) “I would not worry about the virus hazards,” said David Evans, a professor in the Department of Medical Microbiology and Immunology at the University of Alberta in Canada. “I would be very, very surprised if there was any type of active detectable virus on pretty much any surface.”
To be sure, there isn’t enough research about the specific resiliency of this virus, because it is so new. But studies show that its cousin viruses, SARS and MERS, only live for few hours on the surface of an object. They are spread most often by respiratory droplets from one person to another. (Most Doctors/researchers etc are citing 5 days survivability on surfaces as an average)
Q: Will taxes increase because of the coronavirus?
The trade war will not be negatively affected by the coronavirus. In fact, if anything, it will have a positive effect. China has already shown a willingness to decrease tariffs on specifics health-related products in order to remain vigilant in the efforts to contain the virus. I expect America to reciprocate, at least for the time being.
Q: Should I wear a mask?
Everyone in China does. Everyone in China does every single day. In fact, it is essentially law! While there has been science and biased information put out that masks don’t prevent you from getting the disease, there has also been science put out that masks do prevent you from spreading the virus if you have it. Chinese cases are going down almost daily. I would guess that at the very least, wearing a mask can’t hurt, so why not!
*I’d also like to add that hoarding of masks and/or profiteering of the re-sale of said masks is pathetic. Be better than that in a time of need for the world.
Q: Should I wash my hands?
DUH!
In fact, not only should you wash your hands, PLEASE wash them properly by following the guidelines outlined by the CDC found at the following link:
https://www.cdc.gov/healthywater/hygiene/hand/handwashing.html
Q: What does 武汉, 加油or 中国,加油 mean?
Wuhan, Jiayou and / or Zhongguo, Jiayou is a phrase coined by the local community and popularized by the international community supporting both Wuhan and China as they fight the virus.
Wuhan is a large city in China with a population of 11 million people that is commonly agreed upon as the epicenter (a.k.a Ground Zero) of the virus.
Zhongguo is the Romanized spelling of the Chinese (Mandarin) pronunciation of China.
Jiayou is an encouraging term often used in sports, it is equivalent to the Western ‘Let’s Go Insert Team Name, Let’s go!’. The exact translation is Jia 加(add +) You 油 (oil) or ‘add oil’. If your car needs a pick me up, adding oil / gas will help get it over the hump and win the game, or in this case, defeat the virus!
See below a photo of the tallest building in the world, Burj Khalifa, located in Dubai, UAE with Wuhan Jiayou (武汉, 加油) presented via light on the entire face of the building.
Support sent to Wuhan from Dubai, U.A.E.
This virus has an obviously huge potential to cause a lot of loss both economically and health-wise.
It is so important for the international community to remain united as we fight this. Refrain from the blame game or racism at all costs. This thing is nobody’s fault and will only be solved by everybody’s united front participation.
If you have more questions about life in China with the virus or how it is affecting business, in particular manufacturing, in China please feel free to reach out and ask at josh at morphomfg.com.
If you are experiencing difficulty with your supply chain or are looking for a solution to build your dream product, feel free to reach out to MorphoMFG to learn more about our business. Our team on the ground is always ready to manufacture the next big thing.
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