Deng Yali: Facing Difficulties and Challenges, Insist on High-quality Development Target

14 August 2020 | Source from China Rubber Journal


“At present, the impact of the epidemic on industrial economy is unprecedented and the most prominent essential issue is market demand. The development of rubber industry is never smooth, facing difficulties and challenges, to maintain stable development of the industrial economy, we shall insist on promoting the target and measures of high-quality development.” On May 28, Deng Yali, Chairman of China Rubber Industry Association, expressed on “2020 China Rubber Conference” held by CRIA online.


Deng Yali said, entering 2020, we encountered the challenge rarely seen in the human history. The outbreak of COVID-19 exerted a significant impact on the economic and social development and caused a huge shock to the economic operation of rubber industry. Most enterprises in the industry stopped work and production, in the area where the epidemic was severe, some enterprises were unprofitable for two months, but they still guaranteed the salary of the employees. Facing the challenge, the whole industry proceeded without hesitation, actively participated in epidemic blocking action and did what they can to donate money and goods and provide various free services for the epidemic. As far as the information is concerned, the donations of the enterprises in rubber industry were above 137 Million Yuan, the materials donated such as medical protective supplies as well as various free services were countless and could not be comprehensively counted.

CRIA also played the role of bridge link as industrial organization and actively deployed and carried out prevention and control work to coordinate the prevention and control materials for the enterprises and relevant departments, carry out investigation and research, report the epidemic prevention and control dynamic conditions and influence of the epidemic on the industry and enterprises to various departments of the industry and the government and propose relevant policies and suggestions of supporting the work and production resumption of the enterprises and stabilizing the economic operation, thus jointly fighting the epidemic with the whole industry and helping the development of the industry.

Under the strong leadership of the Party Central Committee, the whole nation is united like a city defense, the epidemic prevention and control achieves significant strategic results, and the recovery of the economic and social order is accelerated. The enterprises in rubber industry overcome difficulties and have resumed work and production basically. However, the influence of the epidemic on the industrial economy is obvious, according to the statistics of CRIA, the sales revenue of key member enterprises in the first quarter has a year-on-year (same below) decline of 21%, the realized profit has a decline of 41%, and the amount of the loss has an increase of 80%. 

At present, domestic and overseas epidemic prevention and control as well as economic situation have new significant changes. When the enterprises resumed work and production in the mid-to-late February, the influence on the industry is mainly in domestic market, the enterprises grasped the foreign trade orders accumulated in early period to produce and export played a supporting role in work and production resumption. According to the statistics of CRIA, in the first quarter, the export value of the enterprises fell by 9.6%, in which, the export delivery value of the tire fell by 4.9% and the export decline was smaller than that of the other indexes.

However, along with the global spread and dissemination of the epidemic, closure of country, city, port, etc. occurs in many countries and places, cross-border investment, trade in goods and personnel exchange decrease dramatically, the economy and trade of the world suffer from severe impact, delayed consumption, order shelving or cancellation occur. In April, the enterprises generally reflected that the export was cut in two, the export of many enterprises was only 20%-30% of the original export, especially those in European and America markets had a larger fall. Since May, the conditions have been still severe, some foreign trade enterprises even had to suspend again. As for the enterprises in rubber industry, after the test of domestic epidemic “darkest hour” in the first half, the shock of inter-national epidemic in the second half followed.

Deng Yali expressed that after exploitation during the 70-year history of new China, especially since the reform and opening-up, China’s rubber industry had formed an industrial layout with complete range, rich products and advanced scale, the industrial development climbed to a new level and China realize the historical transformation from a weak and obscure country to a rubber industry manufacturing giant. In recent years, the industry entered transformation and upgrading to turn from the phase of high-speed growth to the phase of high-quality development. The whole industry moved ahead under pressure, struggled to change the development mode, optimize the economic structure and change the driving force to realize overall stable economic operation and steady progress of the industry. However, the most prominent problem at present was market demand, without market demand, there would be no economic development, not to say economic prosperity and the high-quality development of the industry encountered “obstruction” and faced new challenge.

Deng Yali thought that the development of rubber industry was never smooth, but constantly overcame difficulties and made breakthrough. Although the domestic demand market of the industry encountered heavy losses in the first quarter, since the second quarter, the market was gradually recovering, some supporting and repair and substitute markets were close to the same period of last year. As the recovery of the production and life order was accelerated during normalized epidemic prevention and control, a series of staged policies and measures issued by the nation had gradually been implemented, especially, subsequently the country would timely introduce a series of hedging policies, including major support of “two new and one important” series construction proposed in the Government Work Report given by Premier Li Keqiang, which would form realistic new demands and further stimulated the enterprise vitality and market potential.

At last, Deng Yali expressed that the world was in a turbulent situation not seen in a hundred years, the epidemic accelerated this trend, the industrial chain, product technology, industrial form and business mode surely would have significant reform and rare historical opportunity co-existed with larger risks and challenges. Under the severe and complex situation, we should insist on promoting the target and measures of high-quality development, further analyze the profound impact brought about by the turbulent situation and accelerate transformation and upgrading and adjust the industrial layout and product structure targetedly. The whole industry and industrial chain should cooperate to vigorously enhance the innovation ability, accelerate application of new technologies, new products and new modes to improve the stability and competitiveness of the industrial chain and supply chain, exploit new markets and create new demands, change the difficult points into supporting points and convert the risks into opportunities. 
Deng Yali believed that as long as the whole industry gathers strength and forge ahead, we would surely win this tough fight to promote high-quality economic development. In this special year, we would struggle for extraordinary splendor and build new situation of economic development of the industry!  

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