As the pandemic has spread throughout the world, hospitals have become overwhelmed by CCP virus patients.
As many countries deal with escalating outbreaks, evidence has emerged that Chinese authorities have bought up billions of masks, as well as hundreds of tons of other critical medical supplies globally. Meanwhile, China, itself a major manufacturer of such medical supplies, stopped exporting in January—just as the outbreak in China became severe.
Chinese firms and overseas Chinese organizations are the main means to realize Beijing’s global sourcing, buying up stock from the United States, Europe, Australia, and other countries.
Sometimes, Chinese companies negotiated with major international manufacturers and asked them to sell or donate their stocks to China.
Government ActionsBeijing authorities mobilized the Chinese diaspora to help buy up goods. “Keep on buying while sending back to China [medical supplies], and try your best to buy as much as possible,” read one article posted on the official website of the Chinese Communist Party (CCP)’s United Front Work Department, an agency dedicated to spreading the regime’s agenda inside and outside China. In the West, United Front organizations are usually Chinese student unions at colleges and universities, Chinese chambers of commerce, and Chinese associations.
The United Front encouraged all overseas Chinese to follow in the association’s footsteps to buy up all available medical materials and send them back to China.
The article explained that overseas Chinese in the United States, Canada, UK, Argentina, Australia, United Arab Emirates, and Seychelles have already bought up goods in the tons.
Some overseas Chinese organizations in those countries buy from local manufacturers and major wholesalers directly, such as DuPont. Others buy from whatever retailers they can find, according to the article.
The groups then hired Chinese and international shipping companies to transport the goods, such as FedEx and SF Express. The United Front also encouraged Chinese nationals to purchase goods and transport them in their personal luggage when they travel back to China.
China’s Foreign Affairs Ministry also directly instructed nationals to buy up medical supplies.
Chinese embassies and consulates in other countries made similar announcements.
Global SourcingSince January, Chinese state-run enterprises, companies with government entities as majority shareholders, and private firms began sourcing medical supplies to ship into China.
If more than 2 billion medical masks were shipped to China during the first two months of the year, that means China imported about half of the world’s annual production of medical masks.
Many state-run businesses are directly involved in this effort.
“Sinopharm sourced from Europe, the Americas, and Asia. By Jan. 31, it ordered 2.78 million packages of medical supplies, which include 2.38 million masks, 166,000 protective suits, 15,200 goggles, and 190,000 pairs of protective gloves,” the report stated. Furthermore, Sinopharm was preparing to buy up more.
Greenland Group, a Chinese real estate developer with the Shanghai government as a majority shareholder, also joined in.
Country Garden is a private real estate company headquartered in the city of Foshan, in China’s southern Guangdong province. It has businesses all over the world.
In three days, Country Garden’s Australian arm, called Risland, purchased goods and organized them to be transported on a cargo plane flying to China directly.
Some international manufacturers who have business in China also joined this initiative.
Medtronic is a medical device company headquartered in Minneapolis, Minnesota. It has manufacturing facilities in Shanghai, Beijing, Changzhou, and Chengdu.
Cut Off ExportsOn March 9, during a daily press conference of China’s foreign affairs ministry, a reporter asked whether it’s true that the Chinese regime has banned all exports of medical masks and raw materials for making medical masks.
Geng Shuang, the ministry’s spokesman, answered: “China still needs a large amount of masks, and the supply cannot meet the demand. At the current phase, other countries will face difficulties when they try to purchase masks from China.”
Geng denied the government was forcing businesses to stop exporting medical supplies.
State-run media also reported that Chinese businesses are “selling products meant for export inside China.”
As the company mostly produces for the export market, it needs to pay tariffs to sell its products in China. It wouldn’t need to pay tariffs when it sources materials from overseas.
But since Jan. 27, China’s customs authorities gave the company a special permit, allowing it to sell all its products inside China without paying tariffs.
For example, Rizhao Sanqi Medical & Health Company is an export-oriented manufacturer. The ministry asked Sanqi to produce 1 million surgical masks, 50,000 medical protective masks, and 5,000 medical protective suits every day, and only sell them to Hubei province, according to Caixin.
But the supplies were found to be defective.