In just 60 days, from January 1 to February 29, no less than 3,000 new face mask firms were set up in China, which the China Daily called a “potential world record – and a harbinger of a possible multibillion-dollar business.” The mass production of masks acquires added significance as Europe and the United States are struggling with shortages and are limiting mask use to frontline medical workers, The EU and India have banned mask exports to meet demand. What helped China stand out from the crowd was the approach adopted by large state-owned enterprises (SOEs) such as China National Offshore Oil Corp (CNOOC) and China Petrochemical Corp (Sinopec Group). They produced additional quantities of polyethylene, polypropylene and medical-grade synthetic resin, the raw materials for face masks, syringes and other medical supplies. China National Petroleum Corp (CNPC) produced disinfectants, protective suits and masks.

According to Beijing-based CCID Consulting, China’s output value of masks this year will likely surpass CNY13.2 billion, up almost 28% from CNY10.2 billion in 2019. Over the past five years, the output value of masks is expected to grow with a compound annual growth rate of nearly 13%. On March 5, Li Xingqian, General Director of the Department of Foreign Trade at the Ministry of Commerce (MOFCOM), said demand for face masks remains high in spite of increased production, as various economic sectors return to work. Data from the China Textile Commerce Association showed that in 2011, China’s demand for face masks totaled 1 billion pieces. That figure quadrupled to 4 billion pieces in 2018 as is expected to continue to rise. There are more than 530 million workers in the second- and third-tier cities. They each need at least one face mask every day, said a report from Hua Chuang Securities. The National Development and Reform Commission (NDRC) is encouraging mask producers to operate at full capacity. By February 29, the country’s daily production of face masks reached 116 million pieces, up 1,100% from the level on February 1. The daily production of surgical N95 type masks reached 1.66 million pieces. According to Tianyancha, a Chinese corporate data provider, Shandong province tops the list with 1,094 mask manufacturers that make 2 million pieces daily, followed by Jiangsu and Zhejiang provinces

Other provinces are also ramping up efforts. For example, as reported by bjnews, the Beijing municipal government has retrofitted 23 old production lines to make 80,000 high-quality masks per hour. Chinese companies engaged in non-medical businesses have improvised or innovated their factories to produce masks. For instance, Shenzhen-based carmaker BYD announced on February 8 it will expand its product portfolio to produce masks and disinfectants. The company said its daily production capacity for masks is estimated to reach 1 million pieces by the end of this month. Shanghai-based underwear brand Threegun Group has also jumped on the mask bandwagon. Its pilot production line is capable of producing 40 masks per minute, and new machinery upon installation will ramp up production to over 100 masks per minute. In all, the company plans to install 50 mask production lines to raise daily production to 5 million masks, the China Daily reports.