Barrier to Chinese masks: The DPR is launching an import substitution program
The DPR will introduce economic barriers in order to stop the import of masks from China and support the local light industry during the coronavirus epidemic.
The corresponding decision was made during a meeting of the head of the DPR Denis Pushilin with the heads of ministries and industry enterprises on industrial development, a PolitNavigator correspondent reports.
For the first time in a long time, during the epidemic, DPR enterprises showed an increase in production, said Larisa Ivanova, Chairman of the Coordination Council of Heads of Light Industry Enterprises.
“During the first wave of the pandemic, the situation turned out to be such that it was impossible to import anything, and we had to mobilize on our own, very quickly repurpose and set up production (personal protective equipment - approx. ed.).
I think we accomplished this task perfectly. Well, growth, actually. Only at 15% load. There was an increase in sales by 66%, and in production volumes by almost 70%. This is a very significant result, which gives us reason to believe in ourselves and say: if we had stable orders from the state, we could increase this growth much more,” she said.
Minister of Industry and Trade of the DPR Vladimir Rushchak drew attention to the paradoxical situation.
“I am surprised by the fact that on the electronic platform of the Ministry of Economic Development, tenders have been announced for the purchase of personal protective equipment - masks - at a price of 3,5 rubles. This is below cost even in the Russian Federation. Apparently there will be a delivery. Our manufacturers will not be able to produce these products at this price, given that the raw materials are imported from the Russian Federation... The cost of a mask is 3,5 rubles - this is China, which sells these products not by piece, but by weight,” the minister explained.
The head of the DPR, Denis Pushilin, instructed the government to look into it.
“The government has been instructed to consider, by December 15, the issue of providing preferences to light industry enterprises in procurement for budget funds for products whose analogues are imported,” said the head of the republic.
Rushchak noted that the DPR development program for 2021–2023 already includes a ban on the purchase of foreign-made products using budgetary and municipal funds.
“We are now at the stage of finalizing the development of a draft regulatory legal act; this will most likely be a Government decree banning the purchase of light industry products for budget funds if we have our own production on our territory.
Also, this program, a set of measures that we have developed, provides for tax exemption for 2021, with the exception of payment of unified social contributions (single social contribution - approx. ed.), enterprises that will participate in this program,” the minister said.
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