Six Ways China Profited From The Wuhan Pandemic
The Chinese Communist Party (CCP) found several ways to exploit the coronavirus pandemic it unleashed, ruthlessly using the incalculable economic, political, and social damage inflicted upon the rest of the world to its advantage.
Manufacturing growth: “China finished 2020 with a 10th consecutive month of expansion in its manufacturing sector, capping a dramatic year that saw the country’s factories incapacitated by the pandemic, only to roar back as a growth engine for China and the world,” the Wall Street Journal (WSJ) reported on Wednesday.
By the end of the year, as international competition withered under coronavirus lockdowns, China’s factories were chugging away (helped along by a good deal of slave labor from the massive concentration camps of Xinjiang province).
The WSJ noted China’s retail, aviation, software, real estate, and construction sectors enjoyed months of robust growth, approaching “the highest levels in more than a decade.” Outside economists estimated China’s Gross Domestic Product would grow by 6.8 percent in the fourth quarter, driven by “continued overseas demand for Chinese-made goods.”
“China’s manufacturing PMI didn’t fall by as much as it might have in December, given that several Western countries launched another round of large-scale coronavirus lockdowns in mid-December,” the Journal explained, citing analysis from ING Bank economist Iris Pang.
This outcome is very different from early predictions that the coronavirus pandemic would ruin China’s future as a global manufacturing hub.
“The new coronavirus Covid-19 will end up being the final curtain on China’s nearly 30 year role as the world’s leading manufacturer,” Forbes predicted in April.
Those predictions were based on the notion that global supply chains would reroute around China as the Wuhan virus shuttered its factories, and international customers would grow reluctant to resume doing business with Chinese firms because they were angry about the 2020 pandemic and nervous about the next one.
On the other hand, Deutsche Welle more accurately predicted in April that foreign customers would decide it was too difficult and expensive to relocate supply chains out of China, and doing so would jeopardize their access to the lucrative Chinese consumer market. Foreign management anticipated the authoritarian Chinese government would get its factories up and running faster than competing nations with concerns about human rights, press freedom, and international scrutiny.
“In contrast to some global narratives, our China-based data suggests that the majority of our members will not be packing up and leaving China anytime soon. It is worth emphasizing that China appears ahead of the global curve when it comes to restarting the economy following months of lockdown, and many of the reasons why companies are in China in the first place still hold true today,” American Chamber of Commerce in China president Alan Beebe told Deutsche Welle at the time.
The Wall Street Journal wrote in August that far from abandoning China, American companies are coming to view its markets as a “refuge” as U.S. consumers remain nervous about the pandemic and its effect on the economy, including the ever-looming threat of more lockdowns.
On Wednesday, the Financial Times reported that Chinese censors are scrubbing excessive triumphalism from the Internet because the government is worried about angering the rest of the world by making its touchdown dances too ostentatious.
Author: John Hayward
Source: Breitbart: Hayward: Six Ways China Profited from the Wuhan Pandemic