World’s Dependency on China Exposed After COVID-19

Although the interdependence amongst states is no more avoidable in a complex and globalized world, but this recent corona outbreak has managed to impact this status quo. This recent pandemic COVID-19 has not only shaken the social, political and economic base of the world, but it has also unfolded the harsh realities of states being dependent on China instead of being self-sufficient.

With the passage of time, China has made rapid growth economically. It is now the second largest economy of the world after United States of America. It makes around one-third of world manufacturing and has become the largest exporter of goods.  It can be hence be claimed that any change in China’s economy has the potential to affect the economy of the entire world.

From airplanes to needles, China is competing internationally with a handsome success ratio. Moreover, the countries throughout the world also prefer to import products from China in cheaper prices instead of manufacturing them on their own. After this corona outbreaks in Wuhan, in December 2019, it became obvious that its impact would proliferate. With the halt in industrial sector of China, there was a long pause in supply and demand throughout the world. From first world countries like United States to third world countries like Pakistan, each state faced consequences of this particular halt.

The foreign investors and international brands such as Apple, Sony, Nike and many others also faced major crisis due to their dependency on China in two ways: first issue was the decrease in the demand of their products in China due to the closure of cities as Chinese are major buyer of luxury items: and second issue is the unavailability of the components which come from China due to which the required demand of the products remained unmet.

South Korea and Japan have likewise faced the consequences just as declining imports and exports to and from China. Automobiles are one of South Korea’s significant export and automobiles manufacturing has been struck by the financial interruption in China. USA and China are greatly interdependent in terms of trade; the largest displayer of Hollywood films is China. Due to the closure of cinemas in China, it affects the business of Hollywood industry immensely.

Milan, Italy is considered as the largest fashion hub, but it heavily relies on China for the production of the items and thus it has faced the rippled effects in their economy too. The reduction in global economic activity has decreased the demand for oil; reducing oil prices to multi-year lows.

Apart from luxury items the main concern of the world is the import of daily use products from China. Soon after the outbreak of pandemic there was shortage of medical equipment and precautionary items like masks, sanitizers and gloves, China is the major exporter of these products. Chinese product industry is so massive that an average buyer has no idea regarding his/her usage of products coming from China.

China has the ability to manufacture products as big as missiles and as small as a needle. It has made world dependent on it by keeping the prices of products comparatively lower. Our flags, medicines, textbooks, food items, clothes, vehicles and much more; are either made in China or are assembled there.

Therefore, we can say that although interdependency has brought peace and cooperation as with the Chinese manufacturing efficacy we are able to enjoy the facilities and technology, but it has also resulted in the world being immensely dependent on China.

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  1. good points.thumbs up keep up the good work..try to elaborate on covid and how it changed economy of different countries dependent on china

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