With the international spread of the epidemic, some automobile manufacturers and suppliers of parts and components in the Europe and the United States are affected to varying degrees. In the context of globalization, the international division of labor in the industrial chain is becoming increasingly close. The automotive supply chain is complex and vast, with thousands of categories. The lack of one key component can put the entire production to a stop. China is a major automobile manufacturing country and an important global production base for auto parts and raw materials. Every year, there is a large amount of import and export in auto parts and components. The spread of the epidemic overseas will inevitably have an impact on China's auto trade and supply chain.

Under the strong leadership of the Party Central Committee and State Council, China has fully resumed automobile and parts production, easing the pressure on the automobile supply chain. In particular, on March 31, the State Council also introduced three measures—extending subsidies for the purchase of new energy vehicles and exemption from purchase tax for two years; support for key areas such as Beijing, Tianjin and Hebei to phase out diesel trucks with the National III and below emission standards; and reduce the value-added tax rate on the sale of used vehicles by used car dealership enterprises. This will certainly further boost car consumption and mitigate the epidemic impact on the automotive supply chain.

MOFCOM, together with other departments, are closely watching the current problems in the automotive supply chain. We have guided Chinese automotive enterprises to step up monitoring on the production and supply of overseas suppliers, increase orders and inventories, formulate alternative plans and make production more reasonable. At the same time, we have improved customs clearance and logistics facilitation to ensure smooth import channels for core automotive parts, raw materials, and equipment for research and development, production and testing equipment.

We are ready to join hands with other countries, while combating the epidemic together, strengthen international cooperation and make every effort to maintain the stability of the global automotive industrial chain and supply chain and minimize the adverse impact of the epidemic on the entire industry. Thank you.

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