Is There Still Room For Export Of China’s Defense Supplies?

"Chinese companies will export 8 million masks to Italy." With the spread of the COVID-19 epidemic worldwide, recently, information about China's aid to medical supplies abroad has caused widespread concern. At present, the domestic epidemic situation is stabilizing, but still cannot be taken lightly. Are the medical supplies produced by Chinese enterprises sufficient to meet the domestic market demand, and is there really enough spare capacity to export?
"Global Times" reporter recently interviewed a number of medical material production enterprises and learned that protective clothing, nucleic acid detection kits and other medical substances, the production capacity of Chinese companies can take into account both domestic and foreign markets, whether other medical materials can be exported to some extent.
Mask supply is still tight, protective clothing has the ability to export
The National Development and Reform Commission recently announced that China ’s daily production capacity of masks has continued to increase rapidly, both exceeding 100 million. The supply of masks has been restored in many places, and some regions have even purchased unlimited quantities. On the 16th, Beijing media released news that the Chaoyang District Government took the lead in organizing a limited supply of masks to the public, with the first batch exceeding 1.7 million. The masks of some pharmacies in Xi'an have been opened for supply and there is no limit, and there is no snap-up phenomenon in the local area.
The United States "New York Times" reported that China began to provide masks to foreigners. Beginning on March 10, Hubei Xiantao League Medical Products (Hubei) Co., Ltd. mainly completed foreign trade orders to help international epidemic prevention.
Li Lin, general manager of Anhui Fumei Medical Company, said in an interview with a reporter from the Global Times on the 17th that the company's masks are mainly medical surgical masks and medical masks. The initial daily output was 60,000. The daily output is 80,000-90,000. In order to rapidly expand production capacity, the company ordered two large-scale production equipment from domestic manufacturers in early February. If the equipment is in place, the daily output will reach 350,000.
"At present, we can basically solve the problem in terms of raw materials, and the local government can also help solve the problem. Now the most important factor affecting production is production equipment." It is understood that the two equipment booked by the company were originally planned to be in place by March, but It hasn't shipped yet. "Manufacturing equipment does have longer cycles," Li Lin said.
As the national resumption of work resumes, the gap in domestic masks remains huge. According to the analysis of Huachuang Securities, China's secondary and tertiary employment population is about 530 million people. If one person per day, 530 million masks will be needed one day after all the workers resume work. Li Lin told reporters that the company mainly meets the domestic demand for masks and has no spare time to export abroad. "Recently, we have been found by the relevant parties and hope to export masks to Italy and other countries, but our production capacity has not yet come up and cannot meet export demand for the time being. If the equipment is in place, the daily output will reach 350,000, or the domestic mask demand in the next few weeks will be obvious With the decline, we should be able to take into account both domestic and foreign markets. "Li Lin said that mask manufacturers with a certain production scale may have the power to supply foreign markets.
Unlike masks, the main products of Li Lin's company not only meet domestic demand, but also the remaining output can be supplied to foreign markets. The company currently produces several thousand sets of protective clothing per day. In early March, the company supplied 5,000 sets of protective clothing to Japan. "This is the first export of Chinese protective clothing to Japan since the outbreak this year." Li Lin said.
The situation of Zhejiang Longtai Medical Company, another protective clothing manufacturer, is similar. The company's principal Wu Kangping told the Global Times reporter on the 17th that the company had completed orders in the domestic market two weeks ago. At present, the demand for protective clothing in the domestic market is declining, and the company is focusing on overseas markets. The company has recently won an order for Italy, and 100,000 sets of protective clothing are about to arrive in the country. This is the company's first export overseas. In the future, the company's export plan will be formulated according to the development of foreign epidemics and customer needs.
Nucleic acid detection kit can take care of both inside and outside
As of March 13, China's State Drug Administration approved 10 COVID-19 virus nucleic acid detection kit products. Among them, two products of BGI were approved in the first batch. The relevant person in charge of BGI told the reporter of the Global Times that the company has considered the arrangement of subsequent production capacity during the research and development stage of the kit and made the raw material reserve as soon as possible. BGI has a kit production base in Wuhan, which can quickly and large-scale respond to the needs of epidemic prevention and control in Wuhan and Hubei Province.
While meeting domestic demand, BGI's production capacity can also supply foreign markets. As of March 16, the international order volume of Huada's COVID-19 virus detection kit has exceeded 600,000 copies, covering more than 50 countries and regions, and has been shipped to Japan, Brunei, Thailand, the UAE, Egypt, Peru And so on. At present, the company also cooperates with non-profit organizations such as the Mammoth Foundation to carry out donations to some countries. The Mammoth Foundation has donated BGI test kits to Japan, Peru, Angola, Philippines, Serbia and other countries. According to public information, Chinese nucleic acid detection kits are cheaper than international markets, especially European and American countries. In terms of quality, there is currently no unified measurement standard for domestic and foreign markets.
The output of the thermometer is restricted by the core components
The infrared forehead thermometer produced by Beijing Compaq Medical Company (Comper) has a domestic market share of nearly 10% and is mainly supplied to Beijing. The company's CEO Ms. Du Han said in an interview with a reporter from the Global Times on the 17th that the company's current production capacity can reach 10,000 units per day, but due to the unstable supply of core components such as infrared sensors and chips, it sometimes needs to stop production Day, wait for the core components to arrive and then produce.
According to Du Han, infrared sensors and chips are mainly from Japan, Taiwan, and other places, and these areas need to deal with epidemics in the local market, and production progress is also restricted by other upstream companies. "With the domestic epidemic situation and market demand becoming stable, with our current output, the supply of the domestic market is not a big problem. If we export to foreign markets, it depends on whether the number of foreign orders and delivery dates match the company's production. Han said that the company recently assisted 3,000 thermometers in Japan. "But some time ago, some countries had to be so urgent that they couldn't meet immediately, and they needed to wait a month or two before they could deliver."
Li Xinggan, director of the Foreign Trade Department of the Ministry of Commerce, recently said that in order to reflect the responsibility of major countries and support countries in fighting the epidemic, China has previously provided timely support and assistance to the claims made by relevant countries. "I am happy to see that export companies organize the supply of medical supplies such as masks, and make practical contributions to global epidemic prevention," said Li Xinggan.

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