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Chinese factories recovering from coronavirus


It’ll come as no surprise that China’s manufacturing and non-manufacturing purchasing manager’s index (PMI) fell in February. The outbreak of coronavirus meant that plants and factories were temporarily closed, and travel restrictions were imposed so labour supplies were down. 

China optimistic of economic bounce back 

Despite the slump, Chinese businesses remain optimistic that the figures will recover and rise significantly over the next few years. According to the monthly Caixin survey, China’s General Services Business Activity Index, “manufacturers were confident that output would rise over the next year, with the degree of optimism reaching a five-year high” and that they “expect production to rebound once restrictions related to the virus are lifted.” 

Considering the significant savings businesses can make when outsourcing their manufacturing to the Asian country, this isn’t all that surprising. Experts have also identified lots of opportunities for investors in China, particularly in the healthcare, financial and real estate sectors, demonstrating a real confidence in the country’s ability to pick up its economy. 

Factories return to manufacturing 

What’s more, China’s stringent measures to contain the virus have been effective. The number of new cases has all but stopped and in a recent report from a Joint Mission consisting of 25 of the top health experts and the World Health Organisation (WHO), China has managed to contain the spread of the virus extremely well. They said: “China’s bold approach to contain the rapid spread of this new respiratory pathogen has changed the course of a rapid escalation and deadly epidemic… This decline in COVID-19 cases across China is real.” 

Thanks to these strict measures, people in China are starting to return to work in their hoards and factories are being kicked back into gear to make up ground lost during the closures. It would appear that in China at least, the worst of the coronavirus epidemic is over. 

China is one of the world’s most popular countries in which to outsource manufacturing because of the excellent savings available. To find out more about how outsourcing to China can help your business save a significant amount on its manufacturing, get in touch with the experts at China Outsourcing Ltd today on +44 (0)1202 606141