The impact of COVID-19 on China

April 12, 2022

 

China's position in the global value chain will not change because of the epidemic.  As the world's largest trader of goods, the largest exporter of goods and the second largest importer of goods, China has a very high participation in the global value chain.  Under the pattern of dual circulation of global value chain, China has become the hub of value chain connecting developed and developing countries, and is one of the core countries of "conjugate circulation".  Unless the epidemic is widespread and prolonged, it will cause a massive withdrawal of foreign direct investment and a fatal blow to the export trade sector.  That is unlikely to happen based on the current level of control and effectiveness of the epidemic. The pandemic has also forced more people to work from home or even lose their jobs.However, I believe that the rainbow always comes after the storm, the epidemic will pass, and our life will return to normal.

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