Almost 20 years ago, when the “Sars” virus startedspreading, it caused a sort of an “economical standstill”, mostly for China andits neighboring countries. During that period, Chinas GDP was estimated to beat 4% of the global total. Fast forwarding it 20 years, China’s GDP now standsat a whopping 16%, making it the second largest economy in the world, onlybehind the United States of America. A major contributor to China’s phenomenalrise was its massive network of factories. China now manufactures everythingfrom consumer goods to industrial use machines and much more. China makes up of1/3 of the world’s total manufacturing and is the largest exporter in theworld!
Decades of globalization in China have created “extensivebusiness connection” but, this has proven to be very damaging at times aswhenever, there is a problem in the Chinese economy, its ripples are feltacross the globe.
Due to the lockdown of many Chinese factories during thecovid-19 pandemic, China was no longer producing essential items, parts,materials etc. that were vital for other international countries and theirbusinesses. This was a major reason why the economies of most of the world’scountries came to a complete standstill. Companies such as Hyundai Motors from South Korea, Apple from U.S.A hadto shut down their respective operations momentarily as they were unable to getparts required to continue operations that they imported from China.
At the start of the pandemic, China was seen threateningmany nations of dire consequences if they tried to question them regarding thecoronavirus, or tried to close their borders to Chinese nationals as a preventivemeasure to protect their respective countries against the spread of the virus.According to reports, when Australia started questioning China on COVID-19,China hit back saying that “it will wipe out 20 Billion Dollars off ofAustralia’s economy for daring to question China on the coronavirus”. Beijingreportedly asked its students to avoid perusing their higher education inAustralia. The education industry in Australia alone contributes nearly 20+Billion Dollars to its economy. Australian Prime Minister Scott Morrison retaliatedby saying that Australia was not going to be intimidated by China and had latercalled for an independent inquiry into the origin and spread of the virus dueto which the World Health Assembly voted to back a review into the pandemic.
China was also seen engaging in a tussle with India alongits borders with many videos surfacing of Chinese forces engaging in hand tohand combat along the LAC (Line of Actual Control). The Chinese forces clashedwith the Indian armed forces for a second time at the Galwan Valley, nearLadakh. India retaliated by banning 59 Chinese apps in their country.
China’s strategy of dominating and bullying other nations bythreatening them with “discontinuation of business and strategic ties” used towork in its favor in the past but the recent pandemic has in a way united manynations in raising their voices against the “Red Dragon”. That has in a way,proven to be an effective strategy in reminding China that there is a limit tohow much they (other nations) will tolerate.
Many countries were to some extant dependent on China orrather “overly dependent” on them but the recent events have seen a shift in paradigm.As per recent reports, American giant’s- Apple have now decided to manufactureit’s coveted I-phone in India. If nations start becoming “self sufficient”,there might arrive a time in the very near future that global economies won’tbe too dependent on China and its manufacturing industries.