{"id":6707,"date":"2020-03-30T12:07:52","date_gmt":"2020-03-30T04:07:52","guid":{"rendered":"http:\/\/www.whatchina.cn\/?p=6707"},"modified":"2020-03-30T12:07:52","modified_gmt":"2020-03-30T04:07:52","slug":"global-purchase-of-chinese-ventilators-orders-booked-until-june","status":"publish","type":"post","link":"https:\/\/www.whatchina.cn\/global-purchase-of-chinese-ventilators-orders-booked-until-june.html","title":{"rendered":"Global Purchase Of Chinese Ventilators, Orders Booked Until June"},"content":{"rendered":"<div class=\"37c28470d9d6d3cb9ff74e663adb766a\" data-index=\"2\" style=\"float: none; margin:0px 0 0px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3594734025006597\"\r\n     crossorigin=\"anonymous\"><\/script>\n<\/div>\n<p>&#8220;Now I receive a lot of calls every day to buy a ventilator. The company has been in existence for 17 years, and this is the first time I have encountered such a situation.&#8221; Zhang Xue, who works for a medical device company in Nanjing, told Caijing. A customer from Bergamo, Italy, wants to buy a ventilator, hoping to give him a few, but she is really powerless. The company&#8217;s production capacity has been maximized, and a batch of orders are rushing to be delivered.<br \/>\nBergamo is the most affected city in Italy. With the increasing number of critically ill patients, ventilators have become their life-saving machines without specific drugs.<br \/>\nOn March 27, British Prime Minister Johnson tested positive for COVID-19 virus. It is reported that US President Trump called for condolences. The first sentence Johnson said was &#8220;We need a ventilator.&#8221; New York Governor Andrew Cuomo said: &#8220;The key is ventilator, ventilator, ventilator. This is the most important Urgent need. &#8221; He said the state &#8220;has arranged for people in China to purchase ventilators.&#8221;<br \/>\nThe development of the overseas epidemic exceeded expectations, the medical supplies gap was astonishingly large, and the life-saving ventilator fell into a global shortage. As an important ventilator manufacturer in the world, all countries in the world come to China to snap up ventilator.<br \/>\nAs of press time, there were over 660,000 confirmed cases of COVID-19 worldwide, with cumulative deaths exceeding 30,000. According to the latest data, there are more than 580,000 confirmed diagnoses abroad. There are 486,048 confirmed diagnoses and 27,489 deaths. Among them, the cumulative number of confirmed cases in the United States reached 122,666. Italy has confirmed a total of 70,065 cases and 10023 deaths, with a mortality rate of 14.31%, ranking first in the world.<br \/>\nAccording to the American Academy of Critical Medicine, a total of 960,000 patients in the United States will need to use a ventilator due to infection with the COVID-19 virus, but there are only about 200,000 in the United States. In Italy, where the epidemic caused the most deaths, severe shortages of ventilators have forced doctors to give up on treating some patients.<br \/>\nLi Kai, Assistant Chairman of Yi&#8217;an Medical, said: &#8220;No country in the world doesn&#8217;t want to buy a ventilator from China immediately. We have thousands of orders waiting to be delivered. The question is how quickly can we produce these breaths machine.&#8221;<\/p>\n<p>But even if the Chinese factory is full, it will be difficult to meet the demand for ventilators overseas. According to a reporter from Caijing, orders for some large factories have already been lined up to June and July, and orders for small factories are also very tight. The shortage of raw materials and poor logistics have affected the production speed of the ventilator.<br \/>\n\u4e4b\u4e0b Under the increasing shortage of ventilator, countries began to encourage enterprises to transform production of ventilator.<br \/>\nInsufficient orders to be scheduled to June<br \/>\n\u6574\u4e2a The whole morning of March 26, Liu Ming has been looking for ventilator manufacturers who can immediately deliver goods. &#8220;The buyer is the Spanish government, and they plan to take the flight from Baiyun Airport the next day back to China. I just contacted a company that might have the goods, but it was too late to prepare the contract, customs declaration and other materials.&#8221; Liu Ming told Caijing reporter .<br \/>\nAs a result of the final negotiation, the Spanish government official went to the factory to pick up the goods, and the factory was not responsible for all other procedures. But even so, they still did not get the goods. Because 100 units have been sold the previous night.<br \/>\nAccording to British media reports, the number of ventilator in Italy can only meet less than a quarter of the demand. Faced with a rapidly increasing number of patients and unusually scarce medical equipment, they are going all out to find a ventilator in China.<br \/>\nOn March 25, the Spanish foreign bank urgently purchased 2,000 non-invasive ventilators and 400 medical oxygen generators from Yuyue Medical (002223.SZ); on March 24, the first batch of 145 ventilators of Yi&#8217;an Medical has begun. Fly to Serbia; On March 19, Andrew Cummer, Governor of New York State, stated at a press conference that New York urgently needed more than 20,000 ventilators and had sent people to China to purchase them.<br \/>\n&#8220;Orders are basically all exported now. The most frequently asked questions are European countries with severe epidemics, such as Italy and Spain. But there is no way, the orders are really inexhaustible.&#8221; Medical equipment distributor Zhang Jun told Caijing.<br \/>\nAccording to the data of Tiantian Eye Examination, there are currently 50 companies in China that are engaged in business and their business scope includes ventilator. Among the larger ones are Yi&#8217;an Medical, Mindray Medical (300760.SZ), Yuyue Medical (002223.SZ), and Aerospace Changfeng (600855).<br \/>\nZhiyi&#8217;an Medical recently said that since the global outbreak, it has received emergency ventilator procurement projects in 35 countries and regions, including Italy, Britain, Germany, Russia, and Serbia.<br \/>\n&#8220;The buyer I have come in contact with is the most demanded by the ICU ventilator, which is mainly aimed at severe cases.&#8221; Liu Ming said. However, some medical device distributors told reporters, &#8220;Some buyers, regardless of portable or ICU, as long as they have stock.&#8221;<br \/>\n&#8220;Finance&#8221; reporter learned that most orders came from governments. &#8220;Basically, governments of all countries hold approvals to buy, but now we will not accept them even if there are approvals. The list has already arrived in June or July, and production cannot be reached.&#8221; Mindray medical staff told reporters.<br \/>\nThe global demand for Chinese ventilators is rising sharply, and some countries in South America have also begun to join the team to snap up ventilators.<br \/>\n&#8220;Before last week, consulting customers were mainly in European countries with severe outbreaks in Italy and Spain. But from this week, many South American countries, including the Middle East and some African countries, have also started to consult to buy ventilators.&#8221; Zhang Xue Tell a reporter from Caijing.<br \/>\n\u4ee5\u6765 Since the global epidemic is accelerating, Zhang Xue has been taking many purchase consultation calls every day. &#8220;Almost every customer is talking to me, can you even distribute a few of them first, the delivery time is too long, they can&#8217;t wait. But I really can&#8217;t help it, the order is too full.&#8221; Zhang Xue said.<br \/>\n&#8220;The export of medical devices must meet local qualifications. For example, the United States requires FDA and European standards require CE. There are not many manufacturers that meet the standards. At present, the epidemic is so serious that it must meet the requirements, and the supply is definitely not enough.&#8221; A medical device distributor The merchant said.<br \/>\nAccording to the reporter from Caijing, in order to meet the demand for ventilator, some countries and regions are relaxing the relevant access requirements.<br \/>\n&#8220;Our original market was mainly in Africa, mainly because we did not have the FDA and CE certificates required by Europe and the United States. We have had CE before but it has expired. However, from the situation in these days, restrictions may be relaxed in some places. For example Although our CE has expired, we have an ISO certificate, other certificates are also available, and the policy has been relaxed. &#8220;Zhang Xue told reporters.<br \/>\nOn March 26, Zhang Xue received a call from the Chinese Embassy in the United States to purchase a ventilator. &#8220;The other party said that the United States does not require the FDA anymore. In fact, there are not many domestic manufacturers that meet the certification requirements. They are now so strict that there is little choice. The status quo is that it is difficult to get goods without certification requirements, let alone Mention various certificates. &#8220;Zhang Xue said.<br \/>\nIn fact, recently, major epidemic countries and regions such as Europe and the United States have also released temporary or emergency measures for the prevention and control of materials to relax access requirements.<br \/>\nFor example, the European Commission published in the Official Journal of the European Union the recommendations for compliance assessment and market surveillance procedures for medical devices and personal protective equipment (PPE) during the outbreak. Including protective products purchased by official or authorized agencies of EU member states may not have the CE mark, but they can only be used by medical personnel and cannot be sold on the local market.<br \/>\nThe U.S. Department of Health and Social Services (HHS) has announced the need to allow manufacturers or strategic reserve agencies to provide expired respirators or respirators with unknown quality assurance periods that exceed EUA use authorization periods (for example, N95 in state or local strategic inventory). FDA applies for emergency use authorization for respirators. Recently, the US FDA has issued emergency use authorizations for two products.<br \/>\nShortage of components and poor logistics restrict production capacity.The global demand for ventilator surges. As the most important supplier, the Chinese ventilator factory is operating at full capacity and working hard to produce, but even so, it is far from meeting the demand.<br \/>\n&#8220;Our order has been scheduled until May and June, and it is now produced continuously 24 hours a day. But the order is still unavailable.&#8221; A medical device dealer told reporters, &#8220;We have not cooperated with major manufacturers recently, they Orders are too saturated, and the schedule is very far away. Large factories are mainly receiving government orders, and those that are not available will be queued to some small factories. &#8221;<br \/>\nAccording to a reporter from Caijing, the schedule of most factories has already reached May and June, and some well-known brands have a longer schedule. &#8220;Now it&#8217;s impossible to take a weekend break, especially when you need to work 24 hours a day when the time is particularly tight. The order has been scheduled to July, and the new customer&#8217;s order is no longer accepted.&#8221; Zhang Xue said.<br \/>\nAccording to Yi&#8217;an Medical, after meeting domestic demand two weeks ago, the company&#8217;s production line has been working hard to meet the demand for overseas ventilator orders. Workers implement a three-shift system, and R &amp; D personnel are on the production line, and the machine is constantly running.<br \/>\n\u6240\u6709 All ventilator manufacturers in China are racing against time to make ventilator, but there are still some problems that cannot be solved. &#8220;Finance&#8221; reporter learned that the current production difficulties are mainly due to the shortage of key components and logistics obstacles.<br \/>\n&#8220;We have some accessories that need to be imported from Europe and Germany, but due to the impact of the epidemic, the flight is uncertain and the delivery time is uncertain.&#8221; Zhang Xue said, &#8220;On the other hand, the supply of raw materials is also very tight. All ventilator manufacturers are in Grab these original parts, in the end, each manufacturer can get very few goods. &#8220;Zhang Xue told reporters that if the parts can keep up, most of the production problems will be solved.<br \/>\nAnother medical device manufacturer also told reporters that the current limited production speed is due to lack of parts. &#8220;We have a part that needs to be imported from Japan, but now there are very few flights and logistics is not smooth. If the parts are not available, the ventilator will be difficult to assemble.&#8221; The source said.<br \/>\nPreviously, the head of Yi&#8217;an Medical also said that the biggest shortcoming at present is that the core components are dependent on imports, and the supply is short and unstable.<br \/>\nOn March 26, Yuyue Medical stated that even if the company had done a lot of supply chain stabilization and expansion work before and during the epidemic, the capacity of the ventilator was still subject to the supply of raw materials from upstream manufacturers. The company will continue to increase resources for anti-epidemic products and do everything possible to improve production efficiency.<br \/>\nPoor logistics not only affects the supply of ventilator parts, but also affects the normal delivery of the ventilator.<br \/>\n&#8220;We are currently doing some shipping preparations, but we have also got some bad news. Firstly, freight rates have increased. Customers generally use air freight. The cost of air freight will increase by two to three times. Second, there are some local flights. The outage caused difficulties in arriving the goods. We are also working hard to find solutions with our customers. &#8220;Zhang Xue told Caijing.<br \/>\nThe whole world comes to China to find ventilator, and Chinese ventilator factory is going all out to produce, but the problem is that this demand has far exceeded China&#8217;s maximum production capacity.<br \/>\nPrices are skyrocketing<br \/>\nPurchasing Chinese ventilators around the world, some people started to take the opportunity to start speculation.<br \/>\n\u591a At more than 4 pm on March 24, Hu Xia drove for two hours to the door of a company that produces ventilator in Nanjing. He heard the news that there were many buyers at the company&#8217;s door to come to grab the ventilator, but the company&#8217;s ventilator was out of stock. Hu Xia has several stocks in hand, and he wants to take the opportunity to find buyers.<br \/>\nBecause of the nature of his work, Hu Xia has always contacted overseas customers. With the spread of overseas epidemics, consulting him more and more to buy Chinese masks, he began exporting masks. But now, the most frequently consulted is the ventilator. &#8220;Someone from South America, Germany, and India came to me to buy a ventilator,&#8221; Hu Xia told Caijing.<br \/>\nRecently, Hu Xia is basically contacting buyers every day, and then looking for suitable sellers in China. Increase the price for profit. &#8220;The profit of the ventilator is much higher than the mask.&#8221; Hu Xia said.<br \/>\nUnder pressure, the price of ventilators has skyrocketed. &#8220;The normal price of a ventilator is $ 20,000, but the quote from a dealer has reached $ 36,800 per unit,&#8221; a ventilator buyer told Caijing.<br \/>\nZhang Zhangxue also expressed to reporters that he was surprised by the soaring prices. &#8220;We have a ventilator that sells for $ 9,300, but the dealer&#8217;s offer has reached 250,000 yuan. Now we have no goods in hand. Some dealers have stocked some goods before,&#8221; Zhang Xue told reporters.<br \/>\nThe reporter learned that a simple ventilator model ACM812A usually sells for about 50,000 yuan, but on March 28, some dealers quoted a price of 150,000 yuan per unit, and only for that day. &#8220;If you want to spot, the price is 300,000 yuan per Taiwan.&#8221; The source told reporters. And this ventilator only has basic breathing support function.<br \/>\nBut the status quo is that 90% of buyers don&#8217;t care about the price. As long as there is stock, it is the king.<br \/>\n&#8220;All quotations are valid on the same day. If you don&#8217;t hear back for an hour, it will be out of stock. If you need to, you will pay for the deposit within 1 hour, and it will be out of stock for the next day. Hand said.<br \/>\nDue to the existence of a large number of middlemen, the current price of ventilator is very chaotic. &#8220;A lot of inquiries are made every day, but in fact many of them are repeated inquiries, I feel the market is more chaotic.&#8221; Zhang Xue told reporters.<br \/>\nChanges in supply and demand lead to changes in ventilator prices. &#8220;The manufacturer knows the current market situation and will determine the price according to the condition of the accessories and market demand. Now the price is basically changing every day.&#8221; A dealer said.<br \/>\nAccording to the reporter of Caijing, the current price of ventilator has increased by at least 50%. Reasons for the rise include rising component prices, rising labor and logistics costs, and some stockpiles.<br \/>\n&#8220;We only raised the price by 50% yesterday and had to adjust it. Because raw materials have risen sharply, some raw materials have even increased several times. And workers continue to work overtime, and labor costs are also rising.&#8221; On March 28, a ventilator manufacturer People told reporters that the same model, different budgets, will have different prices.<br \/>\n\u7092 Those who are stockpile and hoarders even use information asymmetry to disrupt the price of the ventilator market.<br \/>\n\u575a Yuyue Medical Director Chen Jian said in an interview with the media that someone once called and asked for 5,000 ventilators, and they could pay immediately. &#8220;This amount is too large and not normal.&#8221; Chen Jian said that the company will recognize the order, but some people will still get approval to order, and the financial strength is very strong. &#8220;Later, after our investigation, we found that there were real estate developers behind these orders. It is difficult for us to prevent some ventilators from flowing into the market and becoming speculative financial products.&#8221; Chen Jian said.<br \/>\nHuge gap encourages enterprises to transform production of ventilator<br \/>\nThe development of the overseas epidemic exceeded expectations, the material gap was astonishingly large, and life-saving ventilators fell into a global shortage. As a result, overseas countries have also begun to learn from China, and have mobilized enterprises to transform the production of ventilator. Among them, car companies have become the main force of transformation.<br \/>\nThe next day, the U.S. federal forced the GM and Ford, two American auto manufacturing giants, to cross-border production of ventilators under the relaunched Defense Production Law. The U.S. federal states that General Motors promises to produce 40,000 much-needed ventilators soon.<br \/>\nOn March 19, Tesla CEO Musk stated on social media that &#8220;If there is a shortage of medical equipment in the United States, Tesla will also produce ventilators.&#8221; On the 21st, Musk again stated that the company had already met with Medtronic, And docked the engineering team to negotiate how to use Tesla&#8217;s existing production line to transform it into a ventilator production line.<br \/>\nEuropean countries with severe epidemics are also calling on companies to produce the necessary anti-epidemic equipment.<br \/>\nA spokesman for the British Prime Minister, Boris Johnson, said he had talked to more than 60 manufacturing companies and organisations asking them to help the UK&#8217;s National Health Service, engage in ventilators, etc. Production of &#8220;important medical equipment&#8221;.<br \/>\n\u82f1\u56fd On March 16th, the United Kingdom appealed to Rolls-Royce, Ford, Honda and Jaguar and other car companies, hoping to switch to ventilators in order to relieve the urgent need. The call quickly received responses from local British automakers such as Rolls Royce, Jaguar Land Rover, Bentley, McLaren.<br \/>\nThe British &#8220;Guardian&#8221; reported on the 25th that the British government is evaluating various &#8220;rapid ventilator systems&#8221; production schemes, one of which is from the consortium &#8220;British ventilator challenge&#8221;, which is made up of more than ten aviation, automotive and medical equipment Enterprise composition, including companies such as Airbus and Siemens. The consortium intends to use the existing designs of medical device manufacturers and the production and design capabilities of other companies in the consortium to achieve large-scale increases in ventilator output. Appliance maker Dyson plans to mass-produce a new type of ventilator at the former British Air Force&#8217;s Heraventon base.<br \/>\nThe most severe epidemic in Italy also required Siare Engineering, the largest ventilator manufacturer, to increase its monthly ventilator production capacity from 160 to 500 units. Siare Engineering is currently in talks with Ferrari and Fiat Chrysler Motors (FCA) and parts supplier Marelli, hoping that these companies will help produce some ventilator parts and, if possible, assemble the ventilator.<br \/>\nSimilarly, the German government has begun asking domestic car manufacturers to consider producing medical equipment such as masks and ventilators. Volkswagen said that it has set up a special working group to study how to use 3D printing technology to help produce ventilator and other remaining equipment, and the current project of converting to ventilator is progressing rapidly. A Daimler spokesman also said that the company has received requests from relevant departments and is currently studying various options.<\/p>\n<div class=\"37c28470d9d6d3cb9ff74e663adb766a\" data-index=\"2\" style=\"float: none; margin:0px 0 0px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3594734025006597\"\r\n     crossorigin=\"anonymous\"><\/script>\n<\/div>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>&#8220;Now I receive a lot of calls every day to buy a ventilator. The company&#8230;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ngg_post_thumbnail":0,"footnotes":""},"categories":[272],"tags":[],"class_list":["post-6707","post","type-post","status-publish","format-standard","hentry","category-today"],"_links":{"self":[{"href":"https:\/\/www.whatchina.cn\/wp-json\/wp\/v2\/posts\/6707","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.whatchina.cn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.whatchina.cn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.whatchina.cn\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.whatchina.cn\/wp-json\/wp\/v2\/comments?post=6707"}],"version-history":[{"count":0,"href":"https:\/\/www.whatchina.cn\/wp-json\/wp\/v2\/posts\/6707\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.whatchina.cn\/wp-json\/wp\/v2\/media?parent=6707"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.whatchina.cn\/wp-json\/wp\/v2\/categories?post=6707"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.whatchina.cn\/wp-json\/wp\/v2\/tags?post=6707"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}