Tech giants step up to supply the world
Print Edition
CHINA’S Internet giants are using special funds and logistics facilities to deliver medical supplies and other products internationally.
Alibaba’s logistics affiliate Cainiao said it had used its network to help ship 73 million units of medical supplies within China and 36 million units to 116 countries and regions as of the end of last week.
According to Bu Hua, head of European operations at Cainiao Network, nearly half of all air cargo transportation relies on passenger airlines.
But this has been significantly cut in capacity amid the coronavirus pandemic and the situation will likely continue into the near future.
“It’s essential to help local manufacturers ship goods to overseas customers under these difficult circumstances and we’ve seen some merchants’ orders already picking up, which is an encouraging sign,” he said.
Many Chinese exporters are concerned that intercontinental logistics interruptions might hamper delivery to overseas customers and fear that policies at destination countries will change at short notice in light of the COVID-19 crisis. Alibaba’s export site AliExpress said vendors can get compensation if cargo is detained due to the pandemic. It added 200 charter flights in March and April.
Vice President of Commercial Steven Verhasselt said exports to China in February through Belgium’s Liege airport were up 30 percent.
Imports from China were up 40 percent from March 15 to April 7 as European online retail demand picked up. Liege is one of Cainiao’s overseas hubs for shipping merchandise from China to Europe.
This is because of its rail connections to other European nations.
Tencent announced the establishment of a US$100 million Global Anti-Pandemic Fund in late March.
So far, 7.7 million units of medical supplies, such as personal protective equipment and other essentials sourced by the fund, have been delivered to 15 nations and regions.
Alibaba is working with one of its major shareholders, Naspers in South Africa, to procure more than 500 million yuan (US$70 million) worth of protective suits and medical supplies for health care workers in the country.
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