The impact of the epidemic on the three major industries in China

 

1. The impact of the epidemic on the primary industry, namely agriculture

 

First of all, from the supply side, the epidemic broke out in late winter and early spring, when it is known that the "spring plowing" time of agriculture is approaching. agricultural production activities. On the other hand, in order to better cope with the epidemic, most rural areas adopted measures to close villages or roads, which made it difficult for some farmers who rented land in other villages to carry out production activities, and also for some large production households, which needed to employ a large amount of labor, and there was not enough labor in their own villages to meet production needs and carry out farming activities. And in some areas where the epidemic is more serious, some agricultural activities that require assistance from the government or relevant departments in terms of science and technology, etc., are forced to stop. Secondly, from the distribution side, the epidemic has led to the closure of many cities and the suspension of many logistics companies, which has resulted in the inability to transport agricultural products from some places and shortages in many places, with farmers facing large losses. The prices of agricultural products in many areas have risen and fallen significantly, mainly as a result of the road closure policy. However, in the near future, three ministries jointly issued an emergency notice to implement the "green channel" for agricultural products. Finally, from the consumer side, the shortage of agricultural products in some areas has led to a significant increase in prices. Although the source of the epidemic is still uncertain, the prices of some Chinese herbs are bound to rise in response to the epidemic. However, due to the epidemic, many buyers reduced their procurement activities and the corresponding logistics companies were unable to provide services. Some of the irrational purchasing and hoarding behavior can lead to a much higher demand than the market supply, and higher prices are inevitable. However, it is also due to the increase in the price of local agricultural products that the online sales channels of agricultural products have been needed to a great extent, which has to a certain extent promoted the transformation and upgrading of agricultural products sales, and farmers have a larger economic hinterland for their agricultural products, which has a certain progressive significance to the overall development of agriculture. Overall, the prices of agricultural products will rise briefly, but will definitely return to normal levels after the epidemic is effectively controlled and with the joint efforts of the government and all sectors.

 

Recommended Quality Sellers:

Hebei Dayu Seeds Co., Ltd.    (Main business:Vegetable Seeds, Grain Seeds, Field Crop Seeds, Fruit Seeds)

Hebei Marshine New Material Technology Co., Ltd.   (Main business:Plastic Seedling Tray, Seed Propagator, Air Pruning Pots And Seed Starter Trays)

Hebei Laike Biotech Co., Ltd.   (Main business:Herbicide, Insecticide, Fungicide, Plant Growth Regulators And Fertilizer)

 

2. Impact of the epidemic on the secondary industry, i.e. industry

 

First of all, from the perspective of the light industry, the retail sales of major household appliances will be hit, which belongs to the offline physical stores suffered, as well as the furniture industry and the electronics industry. Although the online sales of cell phones are now very hot, the sales channels of China's mainstream cell phone brands are still mainly sold offline, and the online sales of some domestic brands account for less than ten percent, and the domestic Oppo, Vivo, Huawei and Xiaomi Vivo, Huawei and Xiaomi these big brands, only Xiaomi's online and offline sales ratio is barely equivalent, the other are offline sales than online. From the supply side, these companies are labor-intensive, so they are located in large manufacturing provinces, but the epidemic led to a lack of labor supply after the holidays, the cost was forced to rise, and the supply also fell to some extent, and the epidemic led to extended holidays, subsequent orders are required to work extra overtime in order not to default, both grassroots staff and management, have great pressure, most light industrial factories are Most light industry factories are facing this problem. The cash flow of many SMEs has been adversely affected by the epidemic, and although the state and the central bank have implemented measures to help companies survive the epidemic, the manufacturing industry has been affected by the complex problems it faces. In the apparel industry, for example, retail sales of clothing, shoes, hats and knitwear have been hit, as the impact on these companies has been mitigated by means of online sales. But mask protective clothing manufacturers and the production of non-woven fabrics and meltblown cloth will not be affected. From the point of view of heavy industry, the first industry to bear the brunt is the oil-related industries, because not long ago the Organization of Petroleum Exporting Countries OPEC announced that it would not cut production, resulting in a significant drop in oil prices, and China's oil-related industries, which were also affected by the epidemic, suffered a greater impact, which is not conducive to industry stability. The heavy industry, on the other hand, due to the long shutdown during the epidemic, has led to insufficient production and broken capital chains. With the help of the state and the central bank, most enterprises can tide over the difficulties, but their non-opening has a great impact on the workers' lives, so it is an inevitable trend for heavy industry to open. And many enterprises that need heavy industry products are also shutting down, so heavy industry enterprises also have no source of income, and at the same time have a negative impact on foreign enterprises, many countries have to shut down the relevant enterprises, which has a great negative impact on China's foreign exports. But because of the income elasticity of heavy industry, so after the resumption of work, the disadvantage can soon be reversed. The enterprises engaged in raw material extraction are particularly affected, first of all, during the epidemic, the former various labor forces have returned home, labor shortage, labor-intensive industries are too dependent on labor, and the mode of transmission is also human-to-human, so once the work starts, to put health to do enough preparation work, for enterprises that have not started a long time to make profits, is not a small pressure. But the industry of medical device production will be positive earnings growth for a certain period of time. Overall, China's industry, despite the short-term impact, from a general point of view the good. Industrial enterprises may lose money in the short term, but they will recover quickly after the start of work.

 

Furniture Industry Leaders:

You Wood Furniture Manufacturing Co., Ltd.   (Main business:Living room furniture, office furniture, commercial furniture, outdoor furniture, etc.)

Zhejiang WEWORTH Furniture Technology Co., Ltd.    (Main business:office furniture)

 

Apparel/Textile Outstanding Factory:

Xinxiang Xinxing Special Fabric Co., Ltd    (Main business:FR fabric,Flame Retardant Fabric)

Dongguan Zhong Aide Garment Co., Ltd.  (Main business:Nipple Cover,Nipple Pasties,Nipple Cover)

 

Leading Machinery Companies:

Hebei Daya Rubber Roller Co., Ltd.  (Main business:Industrial Rubber Roller)

Hebei Annuo Automation Technology Co., Ltd.   (Main business:Hot Dip Galvanizing Plant and Solutions)

TONEDO Tech (Zhongshan) Co.,Ltd.  (Main business: X Ray inspection system, Metal detector and related service)

Wuxi Geepro Machinery Import & Export Co., Ltd.    (Main business:Gear Hobbing Machines, Spiral Bevel Gear Machines, Gear Shaving Machine)

 

3. The impact of the epidemic on the tertiary industry, i.e. service industry

 

(1) Consumer industry in the early stage of the epidemic, people are affected by the panic and will hoard a lot of various materials, so consumption in the short term has increased, but because supermarkets and other trading places have been maintaining supply, and the price will not fluctuate too much under the government adjustment, so after the panic, people have not finished digesting the materials hoarded in the early stage, but trading places have been maintaining supply, so supermarkets and other businesses will be adversely affected, and a large number of goods cannot be consumed, resulting in waste. During the epidemic, people's consumer confidence and expectation index will fall off a cliff, but after the epidemic, a retaliatory rebound will occur. And third-party e-commerce platforms will gain benefits. Many consumer establishments have been closed during the epidemic, but due to the government's introduction of relevant measures to give preferential treatment to merchants from various aspects, banks also help with loans and relaxed deadlines, etc. In order to share the pressure of merchants' operation, over 20 real estate companies, such as Wanda, Longhu, China Resources, New City and Sino-Ocean, have reduced rents for tenants of their own properties to the extent of RMB 4 billion.

(2) Restaurants, hotels and tourism, which are largely related industries and are largely affected by the epidemic in the same trend, are analyzed together. Affected by the epidemic, people will have less demand for tourism and crowded areas such as restaurants, so these industries are the most severely affected, all of which have declined to varying degrees, while neighboring tourist areas such as Southeast Asia, where the source of tourists is mainly Chinese tourists, will also be hit significantly. At the same time, there will be retaliatory growth after the epidemic is over. When people can go out, these industries will recover to a great extent.

(3) Transportation industry. During the epidemic, all four dimensions - road, rail, civil and water transport - take a big hit, with road passenger traffic and water passenger traffic declining by 13.4% and 26.4%, respectively, during the Chinese New Year compared to 2019. Although rail and civil aviation declined by only 1.3% and 7.7%, the decline is still inevitable. Enterprises in this industry also all suffered serious losses, and despite the government's proposal to exempt the Civil Aviation Development Fund, the situation is still not optimistic.

(4) Logistics industry. While the transportation industry performed disastrously, the logistics industry surged. Despite the epidemic's reduction in population movement, the logistics industry bucked the trend and saw a significant increase in both average daily mail and average daily delivery during the epidemic. In particular, the transportation of medical and logistical supplies has energized the logistics industry. (

(5) Financial industry. Although the epidemic was negative for finance, with the strong support and help from the state and government, the central government even issued special bonds, so the financial industry and securities market did not fall as much as in Europe and the United States, and despite the decline, it was steady to good.

(6) The game industry and the network education industry, of which are software industries and are industries with a large impact. During the epidemic, the game industry can be described as smooth, workers stop working, students stop school, and the game group's input to enhance the game industry inevitably developed significantly. The online education platform also stood in the wind, despite the suspension of students, but the rapid development of online education, especially after the school carried out online education, some enterprises of online office also led to the development of online office education platform. Although the tertiary industry has been hit the most, with the country's strong control of the overall positive, individual industries can even rise against the trend.

 

Recommended quality sellers--Material and Packaging:

Shijiazhuang Good Film New Material Co. LTD  (Main business: PE protective film,Kraft Protective Paper)

Incom Resources Recovery (Tian Jin) Co., Ltd.  (Main business:RPET pellets, RPET flakes )

Dongguang Yangli Carton Machinery Co., Ltd.  (Main business:Corrugated Cardboard Production Line )

Shandong Jasmine Package Co.,LTD     (Main business: Glass Bottle , Caps)

Hebei Xinyu Welding.,Ltd.    (Main business: Non Copper Coated Welding Wire)

Hebei Ares Building Decoration Engineering Co., Ltd.  (Main business: Expanded Metal Mesh, Perforated Aluminium Sheet)

Xinle Huabao Medical Products Co.,LTD   (Main business:PPE,PE film,nonwoven lamination )

Hebei Boker New Material Tech Co., Ltd   (Main business:Sports Flooring )

 

Conclusion

Overall, all three industries faced great downward pressure during the epidemic, but the relevant measures and strategic layout introduced by the state and the government strongly mitigated the impact of the epidemic, so although there was a decline, the overall situation was stable and positive, and after the epidemic was over, they could all recover to the original level soon. Meanwhile, the epidemic has been effectively controlled in China, but a large outbreak has started abroad, which is to some extent good news for enterprises and individuals in the major industries in China, so China's economic development trend will be shaky in the short term and positive in the long term.