Coronavirus: China manufacturing hub Dongguan faces grim test as global export orders vanish
- Dongguan, once a hub for labour-intensive manufacturers, is on the frontline of China’s coronavirus manufacturing recovery
- But the industrial city is struggling with a second wave demand shock, as the closure of overseas markets hits exports
In February, friends Jay Wang and Zhou Ping were among the millions of Chinese manufacturers battling to resume production after the coronavirus outbreak shuttered key industrial sectors across the economy.
But when the pair finally managed to restart their separate operations last month, after rigorous quarantining of workers and disinfection of factory floors, they encountered an even bigger problem: clients from Europe and the United States were suspending orders as the pandemic spread throughout the rest of the world.
“In late February, I took orders for more than 90,000 pairs of shoes, but 80,000 were cancelled last week,” said Wang, who like Zhou has run a factory in the industrial and export hub Dongguan in southern China for about a decade.
In late February, I took orders for more than 90,000 pairs of shoes, but 80,000 were cancelled last week
“The current situation is becoming very pessimistic, and many of foreign buyers have called to suspend their orders in the past couple weeks,” Zhou said.