Expert interprets resumption of production in Nansha

The program “Expert Talks on Prevention and Control” recently broadcast on the GRT Satellite Channel invited two officials from Guangzhou’s Nansha district to talk about local enterprises’ resumption of production.

The two guests were Xie Ming, the district’s vice mayor, and Lu Qunying, director of the Goods and Labor Tax Division of the Guangdong Provincial Taxation Bureau. They answered questions about general conditions, difficulties and solutions.

According to Xie, Nansha is a powerhouse of the manufacturing industry and its comprehensive resumption rate has exceeded 40 percent.

Enterprises above the manufacturing scale have exceeded a 55 percent renewal rate and the rate of key enterprises has now reached 86 percent, he noted.

Xie said that there are three major concerns -- storage of prevention and control materials, supply chains and employment.

Local companies have stepped up production of medical devices and anti-epidemic materials. Purple River Electronic Technology Co and Berrcom Corporation have provided large volumes of temperature measurement equipment and handheld thermometers. Guangzhou Luohua Medical Devices Industry Co has adjusted its daily output of masks from 30,000 to a range of 130,000 to 150,000. 

The local government also supports a GAC Toyota spare parts manufacturer in first filling orders with stock held in inventory.

Companies that did not lay off staff or reduce layoffs during the epidemic are entitled to some policy subsidies. Companies with new recruits and stable employment for three months may claim for each worker a subsidy of 500 yuan ($71.9), to a cumulative maximum of 500,000 yuan. 

The preferential policies are for both trade and high-tech enterprises. Incubators that rent space from state-owned enterprises are given a subsidy of up to 500,000 yuan, an encouragement for the district’s small and medium-sized enterprises.

For those enterprises severely affected by the epidemic, the period of carry-over of operating losses incurred in 2020 will be extended from the original five years to eight years. Catering, accommodation, tourism, reaction & sports, and training industries can also be exempted from value-added taxes and any additional taxes at the same time, according to Lu.