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News from China
China moves to ensure quality of medical supply exports
1st April 2020

 China has taken new measures to ensure the quality of medical supplies exports amid the global fight against the novel coronavirus disease, authorities said.

 
Starting Wednesday, exporters of medical products including COVID-19 testing kits, medical face masks, medical protective suits, ventilators and infrared thermometers need to provide extra documentation when they go through customs clearance, according to the commerce ministry.
 
The document, in either print or digital form, should contain a declaration that the products have been officially registered in China and meet the quality-control standards of respective export destinations, the commerce ministry said in a notice on its website.
 
The customs will release the exports based on certificates of registration approved by medical product administrations, according to the notice jointly issued with the General Administration of Customs and the National Medical Products Administration.
 
The notice urges exporters to ensure the quality of their products to help the international community fight the epidemic.
Source: Shanghai Daily, April 1, 2020
China's manufacturing PMI rebounds in March
31st March 2020

 The purchasing managers' index for China's manufacturing sector firmed up to 52 in March from 35.7 in February, the National Bureau of Statistics said on Tuesday.

 
A reading above 50 indicates expansion, while a reading below reflects contraction.
 
The rebound came as the country's arduous efforts in coordinating epidemic control and economic and social development have generally filtered through, NBS senior statistician Zhao Qinghe said.
 
With positive changes taking place in domestic epidemic control and prevention, 96.6 percent of China's large and medium-sized enterprises have resumed production, up 17.7 percentage points from one month ago, NBS survey showed.
 
A sub-index for production, rallied 26.3 points from one month earlier to 54.1, hinting at reviving production activities.
 
However, Zhao said the single-month rise does not necessarily mean the production has been back to pre-outbreak levels, noting that more data should be observed.
 
The upturn of economy, Zhao said, only comes when the PMI moves up for at least three consecutive months.
 
Tuesday's data also indicated a remarkable improvement in market demand, as the sub-reading for new orders stood at 52 in March, higher from 29.3 in February.
 
Meanwhile, the PMI for high-tech manufacturing, equipment manufacturing and consumer goods all stood in expansion zone, signaling quickened restoration in the sectors, according to Zhao.
 
China's March composite PMI rose significantly to 53, up 24.1 points from February.
Source: Shanghai Daily, March 31, 2020
How to navigate cross-border trade after outbreak
30th March 2020

 The COVID-19 pandemic is disrupting international shipping and flights. Many countries and regions have started imposing tighter restrictions on cross-border travel and import-export operations.

 
In China, after an all-out assault on the virus, the epidemic is easing and businesses are slowly starting to return to normal. That is now a top government priority.
 
However, infection cases originating from overseas arrivals have been rising. That has prompted public calls for more stringent inspection and quarantine measures to be applied to both imported and exported goods.
 
Such “trade safety” measures pose a greater challenge for businesses on the cusp of returning to normal operations.
 
Since early 2018, the function of entry-exit commodity inspection and quarantine has been reformed and transferred to China Customs from another inspection administration.
 
As the epidemic in China eases, further strengthening over the administration of trade compliance can be expected. That means more comprehensive requirements for credit-risk management. As such, it’s time to think about adjustments that may need to be made in trade strategy and compliance.
 
The Authorized Economic Operator is a certification program currently adopted by China Customs, in alignment with international standards, for credit and risk management. The objective is to create effective supervision over legitimate cross-border trading activities.
 
Importers and exports can benefit from lower inspection rates, simplified documentation procedures and priority in the clearance process.
 
The certification standard was updated in 2019 to incorporate additional assessment criteria and requirements for commodity inspection and quarantine.
 
On the one hand, improvement of internal controls and safety procedures will be helpful in the prevention of epidemics once business activity is back to normal. For example, the certification standard places great emphasis on safety in the areas of access, workplaces, personnel safety, business partnerships and cargoes.
 
In particular, the standard includes new content related to quarantine requirements for transportation vehicles and containers, and measures for crisis management and safety training.
 
All these elements will promote the safer working environment required by businesses to resume normal operations.
 
On the other hand, accreditation as certified businesses will enable companies to quality for smoother processing through inspection and clearance.
 
Companies are advised to heed licensing requirements, quality and safety compliance, and rules related to commodity inspection and quarantine.
 
Businesses are encouraged to establish risk-prevention systems for improving trade compliance and to meet the Authorized Economic Operator certification requirements.
Source: Shanghai Daily, March 30, 2020
China's industrial profits fall in January-February as virus hurts activities
27th March 2020

 Profits of China's major industrial firms slumped in the first two months of 2020 as the novel coronavirus outbreak deals a huge blow to industrial production, data from the National Bureau of Statistics showed on Friday.

 
Profits of industrial companies with annual revenue of more than 20 million yuan (US$2.84 million) totaled 410.7 billion yuan in the Jan.-Feb. period, down 38.3 percent year on year, NBS said in a statement.
 
Many industrial companies suspended operation during February in response to the novel coronavirus disease, resulting in a significant decline in production and sales, said NBS official Zhang Weihua.
 
Factors including rising costs, lower prices of industrial products and reduced profit margins for most industrial sectors also contributed to the drop, Zhang said.
 
Profits in 37 of the 41 industrial sectors surveyed fell compared with one year earlier, according to the NBS.
 
Industrial firms in the manufacturing sector saw combined profits slump by 42.7 percent year on year while firms in the mining industry registered profit decline of 21.1 percent.
 
Profits of state-owned industrial firms dropped 32.9 percent from one year earlier while that for private companies fell 36.6 percent.
Source: Shanghai Daily, March 27, 2020

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