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COVID19: China mask manufacturers make huge profits

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Washington: China-based manufacturers of masks are making huge profits supplying to whoever can pay the most and pay fastest, reports The Guardian.

As the demand for masks have surged, Chinese factories producing masks are demanding 50% payment in advance and are supplying to those customers who are quick with the payment.

The scramble for face masks has created a “madhouse” atmosphere among Chinese manufacturers, who are making huge profits as customers around the world fight to be the first in line.

Producers of masks and respirators are demanding to be paid in full before the products leave their factories and are supplying whoever can pay the most and pay fastest, according to Michael Crotty, a textile broker based in Shanghai.

Crotty, of Golden Pacific Fashion and Design, said he had spent all of Sunday dealing with a flood of new enquiries from US states, national governments, cities, hospitals, distributors and private companies seeking to protect their employees.

“It’s just a madhouse,” he said. “Money talks. The factory knows one thing: what’s in my bank account and when did it get there? And if it gets there before the other guy then that’s who is going to get the production time.”

Factories that have quickly changed their production lines to make masks are demanding 50% payment when an order is made and the other 50% before the masks leave the factory. With scams proliferating, those are often unacceptable terms to many buyers, especially those spending taxpayers’ money.

SOURCE: The Guardian

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