Archive for ‘Entrepreneur’

13/04/2020

Coronavirus: China’s export showroom Yiwu grinds to a near halt as global pandemic restrictions bite

  • China’s famed Yiwu International Trade Market, a barometer for the health of the nation’s exports, has been hammered by the economic fallout from Covid-19
  • Export orders have dried up amid sweeping containment measures in the US and Europe and restrictions on foreigners entering China have shut out international buyers
The coronavirus pandemic has severely dented wholesale trade at the Yiwu International Trade Market in China. Photo: SCMP
The coronavirus pandemic has severely dented wholesale trade at the Yiwu International Trade Market in China. Photo: SCMP

The Yiwu International Trade Market has always been renowned as a window into the vitality of Chinese manufacturing, crammed with stalls showcasing everything from flashlights to machine parts.

But today, as the coronavirus pandemic rips through the global economy, it offers a strikingly different picture – the dismal effect Covid-19 is having on the nation’s exports.

The usually bustling wholesale market, home to some 70,000 vendors supplying 1,700 different types of manufactured goods, is a shadow of its former self.

Only a handful of foreign buyers traipse through aisles of the sprawling 4-million-square-metre (43 million square feet) complex, while store owners – with no customers to tend to – sit hunched over their phones or talking in small groups.

A foreign buyer visits a stall selling face masks. Photo: Ren Wei
A foreign buyer visits a stall selling face masks. Photo: Ren Wei
“We try to convince ourselves that the deep slump will not last long,” said the owner of Wetell Razor, Tong Ciying, at her empty store. “We cannot let complacency creep in, although the coronavirus has sharply hampered exports of Chinese products.”
Chinese exports plunged by 17.2 per cent in January and February combined compared to the same period a year earlier, according to the General Administration of Customs. The figure was a sharp drop from 7.9 per cent growth in December.
After riding out a supply shock that shut down most of its factories, China is now facing a second wave demand shock, as overseas export orders vanish amid sweeping containment measures to contain the outbreak around the globe.

Nowhere is that clearer to see than in Yiwu. The city of 1.2 million, which lies in the prosperous coastal province of Zhejiang, was catapulted into the international limelight as a showroom for Chinese manufacturing when the country joined the World Trade Organisation in 2001.

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Before the pandemic, thousands of foreign buyers would flock to the mammoth trade market each day to source all manner of products before sending them home.

But the outbreak, which has claimed the lives of more than 113,000 people and infected more than 1.9 million around the world, is proving a major test for the market and the health of the trade dependent city.

Imports and exports via Yiwu last year were valued at 296.7 billion yuan (US$42.2 billion) – nearly double the city’s economic output.

Businesses, however, are facing a very different picture in 2020. Most traders at the market say they have lost at least half their business amid the pandemic, which was first detected in the central Chinese city of Wuhan last year.

Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries – Tianqing

“Yiwu is the barometer for China’s exports,” said Jiang Tianqing, the owner of Beauty Shine Industry, a manufacturer of hair brushes. “Just take a look at the situation in Yiwu and you will understand the extent of the virus’ effect on China’s trade with foreign countries.”

Jiang said his business was only just hanging on thanks to a handful of loyal customers placing orders via WeChat.

“I assume it will be a drawn-out battle against the coronavirus,” he said. “We are aware of the fact that developed economies like the US and Europe have been severely affected.”

The Yiwu market reopened on February 18 after a one-month long hiatus following the Lunar New Year holiday and the government’s order to halt commercial activities to contain the spread of the outbreak.

Jiang Tianqing, owner of hair brush company Beauty Shine Industry. Photo: Ren Wei
Jiang Tianqing, owner of hair brush company Beauty Shine Industry. Photo: Ren Wei
But facing the threat of a spike in imported cases, Beijing banned foreigners from entering the country in late March – shutting out potential overseas buyers.
Despite the lack of business, local authorities have urged stall owners to keep their spaces open to display Yiwu’s pro-business attitude, owners said.
“For those bosses who just set up their shops here, it would be a do-or-die moment now since their revenue over the next few months will probably be zero,” said Tong. “I am lucky that my old customers are still making orders for my razors.”
The impact of the coronavirus is just the latest challenge for local merchants, who normally pay 200,000 yuan (US$28,000) per year for a 10-square-metre (108 square feet) stall at the market.
Traders were hard hit by the trade war between China and the United States when the Trump administration imposed a 25 per cent tariff on US$200 billion of Chinese imports last year.
At the time, some Chinese companies agreed to slash their prices to help American buyers digest the additional costs.
“But it is different this time,” said Jiang. “Pricing does not matter. Both buyers and sellers are eager to seal deals, but we are not able to overcome the barriers [to demand caused by the virus].”
Even when businesses can secure orders, it is a struggle to deliver them
.

Ma Jun, a manager with a LED light bulb trading company, said the only export destination for her company’s products was war-torn Yemen because it was the only country with ports still open.

It is a public health crisis that ravages not just our businesses, but the whole world economy – Dong Xin

Dong Xin, an entrepreneur selling stationery products, said he could not ship the few orders he had because “ocean carriers have stopped operations”.
“It is a public health crisis that ravages not just our businesses, but the whole world economy,” he said. “The only thing can do is to pray for an early end to the pandemic.”

Most wholesale traders in the Yiwu market run manufacturing businesses based outside the city, so a sharp fall in sales has a ripple effect on their factories, potentially resulting in massive job cuts.

Workers pack containers at Yiwu Port, an inland port home to dozens of warehouses. Photo: Ren Wei
Workers pack containers at Yiwu Port, an inland port home to dozens of warehouses. Photo: Ren Wei
At Yiwu Port, an inland logistics hub full of warehouses where goods from the factories are unpacked and repacked for shipping abroad, container truck drivers joke about their job prospects.
“We used to commute between Shaoxing and here five times a week, and now it is down to twice a week,” said a driver surnamed Wang, describing the trip from his home to the shipping port, just over 100km away.
“At the end of the day, we may not be infected with the coronavirus, but our jobs will still be part of the cost of the fight against it.”
Source: SCMP
19/11/2019

It’s a dirty job and I’m the one to do it, says millionaire who risks his reputation to break China’s litter habit

  • Every morning and night for the past four years, businessman Zhong Congrong has been on the streets of Chongqing to stop people dropping their litter
  • Admired as a welfare champion, the 54-year-old says he has been beaten and insulted for his cause
Zhong Congrong is a familiar figure on the streets of his hometown. Photo: Handout
Zhong Congrong is a familiar figure on the streets of his hometown. Photo: Handout

Zhong Congrong owns three businesses in southwestern China which together are worth more than 100 million yuan (US$14.3 million), but he prefers to risk being labelled as an environment “nut” who wants to clean up Chongqing.

Every morning after breakfast and each evening after supper, the entrepreneur pulls on an orange T-shirt, gets into his Mercedes-Benz SUV and heads downtown. For one or two hours, he walks the streets, picking scraps of rubbish off the road and talking to passers-by about littering.

“It is my mission to change people’s bad habits and to raise their awareness of protecting the environment,” said Zhong, who has been on this mission for four years. It has brought the 54-year-old civic rewards, earned him a bruising or two from people who do not want to listen to his message and it nearly cost him his marriage.

Throughout it all, he has remained a persistent voice for the environment in the city of more than 30 million people and, as some of them have learned, he refuses to give up.

Yang Zuhui (right) has come to admire Zhong Congrong’s dedication to his litter picking mission, but she fears for her husband’s safety. Photo: Weibo
Yang Zuhui (right) has come to admire Zhong Congrong’s dedication to his litter picking mission, but she fears for her husband’s safety. Photo: Weibo

On mainland China, cities have banned littering and some hit offenders with fines as high as 200 yuan. However, the rules are rarely obeyed and feebly enforced, and while there are plenty of dustbins in public places, litter is still a nuisance.

Zhong said his mission started in 2015 after he met a woman in her 70s in Sanya, the southern coastal city on the South China Sea island of Hainan. He was struck by how dedicated she and her husband were when they went litter picking each day.

“They are retired professors from a prestigious university in Beijing,” Zhong said. “I chatted a lot with her and I asked her, ‘What’s the point of collecting rubbish every day? You clean up the beach today, but tomorrow new rubbish appears’.”

The way to solve the problem was to teach people to not litter, she told him, but she said she “dared not” try to do that. Zhong said that encounter gave him his purpose and he would dare to change attitudes.

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Back home, Zhong watched and learned – concluding that customers of restaurants and fast food businesses tended to be the people who dropped rubbish most.

“Perhaps it’s because when people dine in restaurants, they throw their rubbish wherever they like. Going outside, they keep on doing it,” he said.

“People in shopping malls are generally more civilised.”

Zhong says his mission began in 2015 during a holiday on the island of Hainan. Photo: Dickson Lee
Zhong says his mission began in 2015 during a holiday on the island of Hainan. Photo: Dickson Lee

While on patrol, Zhong makes himself easy to see in an orange T-shirt that bears his clean-up message. His tools include a metal pincer for picking up tissue paper, plastic bags, drinks bottles, nappies and other everyday detritus and putting it into bins.

He also carries a voice recorder that sends out an appeal to restaurant customers: “To protect our environment and not to affect our kids’ healthy growing up, dear friends, please don’t throw rubbish.”

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Zhong said that at first he felt afraid and self-conscious when he stood in front of a crowd of diners with his green gospel. But time and practise taught him he had almost nothing to fear, he said.

One of the bigger challenges is getting through to the many people who do not listen to him and refuse to dispose of their rubbish the right way.

“It’s normal that our society has various kinds of people and I need to face this reality,” Zhong said. “I was prepared in my mind that I would be called ‘nut’ since this is such an arduous but fruitless cause.”

He tackles the problem with his usual persistence, so argument and persuasion is all part of the job. When Zhong insists the rule breakers take their rubbish and bin it, some ignore him and others walk away – but he is ready with an answer.

“I tell them, ‘If you don’t pick it up, I guarantee that you will lose face today. I will let passers-by see and hear what a humiliating thing you have done. Everybody will then condemn you and you will be embarrassed’,” he said.

When people tell him what they do is none of his business, Zhong replies that what he is doing is in the public interest.

Sometimes there is a heavier price. Zhong said he once watched several men in their 20s throw rubbish onto the road from their car. He set off after them in his SUV. He waylaid them and asked them to clean up after themselves – the men refused, swore at him and beat him up. Their day ended in a police station.

Zhong said he hoped his work would bring “positive energy” to the employees of his vehicle components and packaging materials companies, but his mission was not about business prestige.

However, last year, he was named as one of the top 10 public welfare figures of Chongqing by the municipal government, while his family was honoured as a Chinese good family by the semi-governmental All-China Women’s Federation, a women’s rights organisation established in 1949.

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There were trials for Zhong closer to home – his wife, Yang Zuhui, did not support his mission at first and threatened to divorce him.

“It’s OK that you picked up trash on the street and you were just another cleaner there,” she told him in an interview with Hunan Television in 2017. “But what worried me was that you tried to persuade others – physical violence [against him] was inevitable.”

She also said: “My husband is not very tall and, on many occasions, he was at a disadvantage and got beaten up. I am worried about his personal safety.”

Zhong impressed his daughter’s schoolfriends with an inspiring speech. Photo: Weibo
Zhong impressed his daughter’s schoolfriends with an inspiring speech. Photo: Weibo

But two years ago, their 10-year-old daughter helped change Yang’s attitude towards her husband’s mission after a school outing.

After lunch that day, Zhong gave the adults and children who had left rubbish behind one of his lectures.

His daughter, who was embarrassed by Zhong’s speech, came to appreciate him when classmates told her: “Your father is awesome. He is like a hero who protects the Earth.”

Yang was won over because she knew her husband was a determined man and once he decided on a course of action would not change his mind.

Their son – who is in his 20s and has returned to Chongqing after studying in France – always stands by his father, Zhong said.

“My son told me that environmental voluntary work normal abroad and it is respected,” he said.

Going out to collect rubbish has become part of Zhong’s life, he said.

“In the evening, if I stay at home, my wife and daughter will ask me ‘Why don’t you go to pick up rubbish?’”

He said it was important to go litter picking every day because the more he did it the more people he could influence.

“By breaking the littering habit, Chinese people can stand tall when they travel abroad,” Zhong said.

Source: SCMP

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