In the year 2020, the entire world had to face the sudden awake of the coronavirus, which led to nations declaring lockdowns that dragged on for months. The sudden pandemic had an adverse impact on many lives, leading economies to crumble in the face of the virus.
However, even when most countries were struggling to come to grips with Covid 19, there was one country that benefitted from this pandemic economically, i.e. China. According to China Finance and Economy News, when the whole word was suffering, China actually was able to economically benefit from the pandemic, and researchers are now saying that because of that China’s economy can very soon dominate the market. Continue reading to find out more:
How it all Started
During the coronavirus pandemic, when many nations suffered economically, China actually managed to grow despite the hard-hitting circumstances. The primary reason for this was that China’s global output saw the swiftest increase in decades, leaving behind even nations such as the United States. The sudden increase in China’s output while all the other nations’ output decreased, is a considerable advantage for China, and this can lead to the Chinese dominating the world market within the next two or three years.
Due to the sudden spread of the virus, when most factories around the world had to stop their operations, China had already managed to adjust to the pandemic and was on its way to revival. This way, when production was low to almost zero in most parts of the world, China’s production was in full swing, resulting in export surplus in almost everything – from masks to fuel to items of daily need.
The export boom, however, was not the only way in which China benefitted. In 2020, China left the United States of America behind and became the largest recipient of FDI or Foreign Direct Investment. This was the first time when the infamous Fortune 500 companies list consisted of more organisations based out of China than any other year. Moreover, in 2020, China also became the top trading partner for the European Union – beating the USA. China is also making a significant progress in the financial markets as well – the sovereign debt of the country has now been added to the FTSE Russel – Benchmark Index which makes China included in all the world’s top three global bond index. In fact, has China grown so much during the pandemic, that china’s GDP global share came to a whopping increase to 14.5% from a mere 9.2%
Thus, slowly but steadily, China has left the whole world behind, and is taking small but strong steps towards global domination. Be it having the best of the manufacturing capabilities, producing bulk items at the cheapest prices or providing economical labour, China has already made its mark in these few sectors and with the pandemic acting as an advantage for them, China truly is emerging as an ultimate powerful nation that is heading towards global domination as we speak.