SHENZHEN: Christian Gassner, whose furniture components factory in the southern Chinese city of Shenzhen had a dismal end of 2022 amid COVID-19 outbreaks, is finally seeing light at the end of the tunnel. About two months ago, many workers quit to avoid potential lockdowns ahead of Chinese New Year, then i
SHENZHEN: Christian Gassner, whose furniture components factory in the southern Chinese city of Shenzhen had a dismal end of 2022 amid COVID-19 outbreaks, is finally seeing light at the end of the tunnel.
Other owners and managers are similarly eager to get on with what they expect will be a gradual recovery for the Chinese factory sector, which makes almost a third of the world's manufactured goods and is a key growth engine for its second-largest economy. "There is a theory that China was trying to have as many people as possible get COVID in a short time to get it over with," Li, an executive at an auto parts maker with factories in Shanghai and the eastern city of Hefei, said on condition of partial anonymity as he was not authorised to speak to media.Li's factories had to scramble last month when up to a third of their workers were down with COVID-19 at the same time.
Gassner does not think all his workers will return right away after the holiday, which for many Chinese lasts for weeks. But he expects his business, which makes motors and actuators for furniture, to gradually rebuild its workforce, and crucially, its clientele. Forward-looking indicators point to a progressive recovery - not an instantaneous one, and still less one that suddenly takes the country back to a pre-pandemic pace. The manufacturing survey's sub-index of future output surged to the highest since February, but the sub-index for future orders shrank.
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