Chinese Firms With Middle East Business Report No Major Impact From Regional Crisis
Zhang Yushuo
DATE:  9 hours ago
/ SOURCE:  Yicai
Chinese Firms With Middle East Business Report No Major Impact From Regional Crisis Chinese Firms With Middle East Business Report No Major Impact From Regional Crisis

(Yicai) March 3 -- Listed Chinese companies working in the Middle East said that risk control systems, diversified business structures, and solid roots in the region mean they have not suffered substantive operational disruptions as a result of the regional conflict.

GL Tech's operations in Israel have not been uninterrupted, the Chinese high-end equipment maker said. Its advanced dicing technologies factory is on an Israeli government whitelist and is authorized to keep working during emergencies and wartime, the firm noted, adding that its local staff have designated shelters, where they can maintain communications, ensuring uninterrupted business operations.

Over the past two years, research, development, and production at the ADT factory has been largely uninterrupted aside some occasional logistical disruptions, the Zhengzhou-based firm noted. Its plants at home and the United Kingdom will provide support to ensure order fulfillment, the firm added.

Jihong Group, a paper packaging maker with a production site in the United Arab Emirates, said output and business activities are proceeding in an orderly manner and factory operations remain stable. The Xiamen-based company is collaborating with local partners to develop a manufacturing and export platform for products such as diapers, waterproof paper, and eco-friendly packaging.

These reassurances come after the United States and Israel launched airstrikes on Iran on Feb. 28, sparking a conflict that has drawn in other Middle Eastern countries. Moreover, Iran yesterday closed the Straight of Hormuz, one of the world's most important transit routes for crude oil and natural gas shipments.

Such timely information from listed businesses helps to steady investor sentiment in a complex market environment and reflects improvements in the transparency and governance within China’s capital market, analysts said.

The regional crisis has pushed up logistics costs and lengthened transportation times, temporarily slowing Elegant Home-Tech's European market expansion, according to the Jiangsu province-based maker of polyvinyl chloride flooring. The company’s core focus is North America, where it has production capacity in the US and Mexico and has largely achieved local production for local sales, ensuring stable supply in its key market, the firm pointed out.

Hainan Strait Shipping said fuel accounts for less than 20 percent of its operating expenses, so oil price volatility is a manageable part of overall costs. The maritime transportation company is offsetting rising oil prices by optimizing shipping speeds and routes and conducting timely bulk fuel purchases.

While consolidating its core China and US markets, Sinocare is actively expanding into markets in Europe, the Middle East, Southeast Asia, and South America, the health solutions provider said.

Shenkai Petroleum and Chemical Equipment, which considers the Middle East as one of its key export destinations, said that it has developed emergency plans to address non-commercial risks overseas, adding that its international business has performed well over the past year.

Editor: Futura Costaglione

Follow Yicai Global on
Keywords:   geopolitical risk,supply chain resilience,listed companies,investor relations,risk management,military,oil price volatility,business continuity,Middle East,Iran