Leatherbiz reports that the chairman of the China Leather Industry Association (CLIA), Li Yuzhong, has said more than 140 policies have been announced across China as national and local governments take steps to help manufacturers recover from the effects of the coronavirus outbreak.
Li Yuzhong - CLIA Chairman
Speaking recently to the organisers of the APLF exhibition, Mr Li said most companies in the leather industry in China are small or medium enterprises (SMEs), but he added that SMEs are extremely important to China’s economy because it is these companies that provide most of the country’s jobs.
He said CLIA’s member companies have now started manufacturing leather again, but in keeping with the situation of most SMEs, he said the biggest challenge they are facing at the moment is that their costs have increased because of the coronavirus while orders and revenue have decreased.
Mr Li said relief measures from central and local governments have been rolling out since late January to strengthen support for companies and alleviate tax and other financial burdens.
Examples he gave included exemptions, reductions or deferrals in paying social insurance premiums on behalf of employees. Mr Li said this could result in relief worth around $85 billion to China’s SMEs.
Specific to the tanning sector, he pointed to the tariff exclusion on imports of US hides that the customs authorities are allowing as a good example of the help that companies can receive.