Cao Dewang: The recovery of the global industrial chain may take several years

Cao Dewang: The recovery of the global industrial chain may take several years
The epidemic is spreading all over the world, and China’s exports are under pressure. From the perspective of entrepreneurs, do you want to save enterprises, especially those exporting foreign trade?Sauna, Yewang interviewed Cao Dewang, chairman of Fuyao Group, on these issues. Cao Dewang believes that the crisis encountered by Chinese companies this time is completely different from the previous crisis. It is the reduction of foreign orders affected by the epidemic that has led to increased business pressureWhat method of saving the enterprise will test the wisdom of the government.Sauna Night Net: Export is one of the troikas driving the Chinese economy. Now many people are discussing how to rescue enterprises, especially those exporting foreign trade.So, what do you think?Cao Dewang: Once an enterprise closes, it will be difficult to recover.China’s export enterprises are mainly small and medium-sized enterprises, and these huge small and medium-sized enterprises have created most of China’s foreign exchange.If possible, enterprises should be given some assistance.But this time the crisis encountered by Chinese companies is completely different from the previous crisis, which makes it more difficult to rescue companies: First, the global supply chain is now broken, which is very terrible.The epidemic is spreading all over the world, and the demand in overseas markets has shrunk. To whom do we produce?In the long run, there will be many unremarkable small factories falling through the epidemic, but these small factories are an important part of the global industrial chain. Once they close down and rebuild, it will take a process.Therefore, I believe that the global industrial chain will not be restored in the short term, and it may take several years or even longer.Second, the epidemic has hit the global economy hard, and governments of various countries have spent less money to save the market.Just like a serious illness in human life, while physical fitness is damaged, it also increases the burden of spending money on medical treatment.After the outbreak, to prevent the possibility of the global economy entering the Great Depression, the demand may also be greatly reduced.And now that the aircraft is grounded, and many unloaded dock workers go home, there are certain difficulties in transporting the things we produce to the outside.The decrease in export orders has led to increased business pressure on enterprises. The key to solving the problems of enterprises lies in the orders, perhaps not in the flow of funds.Simply by giving money, we cannot solve the problem of the decline in the current order demand of enterprises. The government must be targeted when it comes to bailing out enterprises. This requires our government to conduct in-depth research and thinking.There are also some inclusive policies that may be considered.On the budget, we are implementing a substitution system. If enterprises lose money inevitably, they will also have to pay taxes. Many companies hope that the government will cancel the substitution of enterprises during the epidemic and reduce the pressure of substitution.In addition, the United States revised its accounting law when it rescued companies in the 2008 financial crisis. I think it can be embedded in a similar way.Sauna Night Network: China also has a consumer market of 1.4 billion people. Can domestic sales become the outlet for export-oriented enterprises?Cao Dewang: This estimate is also difficult.We have a huge consumer market, but most of us may spend the most money to buy a house.Except for houses, most people may not have much real consumption needs and expenditures.And the epidemic has not really passed, and consumption will be affected to a certain extent.Sauna, Ye Wang Hou Runfang Intern Zhao Fangyuan Editor Li Weijia Proofreading Chen Diyan