How Coronavirus Would Affect The Economy Of China
As per the revealing done by an analysis, after the Covid-19 global economic order there are very less chances for China to retain it’s position of being the world’s largest factory, due to various reasons including the trade war with United States, shortage of workforce, rising labour costs and the rising manufacturing hubs of South-East Asia. This also points out the opportunity for India to emerge as a more reliable substitute for China.
The country of China is experiencing a substantial fall in exports since the month of January 2019. The coronavirus pandemic has added more fuel to this downfall which began from the early 2019. During that time the huge companies like Sony, Ricoh and Asics corporation had also planned to shift their production units to countries outside China, in order to escape from the U.S trade tariffs.
There were other companies such as Nike which also planned to change their bases to Thailand, Vietnam or any other South- East Asian nations. There were also announcements made by the CFO of Panasonic while announcing the quarterly earnings of the company regarding how they are actively searching for alternatives to produce their products outside China.