Daily Management Review

Work In Manufacturing Hubs In China Restarts As Migrant Workers Come Back To Work


Work In Manufacturing Hubs In China Restarts As Migrant Workers Come Back To Work
Hundreds of thousands of migrant workers returning to work in the main manufacturing hubs in the east and south of China as coronavirus related travel curbs are being eased in many parts of the country. Roads in these manufacturing hubs are also seen to be more full during rush hours.
Coronavirus emergency response measures have been scaled down by a number of provinces in China which has allowed authorities to ease transportation curbs which in turn is allowing companies to restart manufacturing operations.
According to media reports based on calculations based on transportation ministry data, since February 10, when China ended the prolonged Lunar New Year holiday because of the outbreak of coronavirus, about 180 million workers have left their hometowns to return to work.
According to projections of workers travelling, in the last two weeks in February, it is predicted the about 192 million people are likely to return to cities where they work based on the current daily travel flow rate of more than 14 million people. That will be more than the government estimates of about 120 million workers returning.
Since last week, there has been a significantly more inflows of migrant workers in the Guangdong province, of China which is an economic and export hub in the South of China as well as in the Zhejiang province, shows data compiled by China's internet giant Baidu Inc. in the last two weeks, almost 200 chartered trains have been sent to get back more than 6,000 migrant workers from their homes in inland China, said Guangdong government.
"Guangdong is prioritising production resumption at information technology, automobile, petrochemicals and household appliances firms ... especially Huawei, ZTE, Midea and GAC Group," said a senior Guangdong official at a press briefing on Saturday.
Flow of migrant workers has increased up to its highest level since after the Chinese New Year holiday to Shenzhen, which is also the headquarters of Huawei and is considered to be the Silicon Valley of China. However that number is still well below to the same period last year.
Reports also noted a sharp rise this week in urban transport in Shenzhen. As on Monday, 420,900 cars were tracked on roads during morning peak hours in the city, said reports based on Shenzhen traffic police data. That was 58 per cent more than in the same period a week ago. However that was 40 per cent lower than on a normal Monday in the city prior to the outbreak of the virus. This is because workers are still being encouraged to work from home to reduce risks of infection.  
Last week, about 30,000 companies were added to its business resumption list by Guangdong province compared to only about 12,000 firms that reopened the week before.
However, disruptions in the supply chain, reduced demand, and labour shortages in some places also means that the levels of production in Chinese companies that have reopened are lower than normal.