Chinese Future Economy After the Coronavius Pandemic Social Essay

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Possible Chinese Economic Trajectories after the Corona Virus Pandemic
Introduction
It has been an unprecedented event that the People’s Republic of China has become the second-largest economy considering that it is only a few decades back when it was entirely an agrarian nation. Similar to the case stories of developed nations today, its economic trajectory since its independence is marked with shocking tragedies, watershed moments as well as strategic directives. The emergence of the Corona Virus (COVID-19) is a significant tragedy for not only the Chinese government but also the entire globe. The most devastating point is that the virus emerged from the Asian nation placing it on a major spotlight. It is an embarrassment to them similarly that there is no entity, whether an individual or a business, finds it pleasant to be associated with adverse situations. Nevertheless, this presupposition is a secondary event at the moment as people around the globe battle the spread of the virus.
The mortality rates in European nations has surpassed China’s, which is the most likely scenario even though the Chinese government is known for its secrecy in revealing sensitive data (Rapoza). An estimated two-thirds of the entire global populous is presently in some type of lockdown implying immense pressure on businesses and many countries’ economies (France 24). The regional closure of several countries’ boundaries implies China is affected immensely considering its function and role in the globalization of international space. From an overall perspective, China faces a possible economic decline considering backlash from many countries including the United States (U.S.) although its highly-skilled and relatively available youthful population could be instrumental to the country’s return to its optimal efficiency.
Initial Economic Growth Rate
The most definite result of the COVID-19 would be a sharp decline in the country’s economic growth rate over the first quarter of 2020. The Asian country has encountered several weeks of lockdowns, which have extended to months in some cities such as Hubei. Many people have lost lives in China and even further, the virus has shattered the global economy. Radical uncertainty remains the best approach in describing the historical moment the pandemic has created. A certain truth is that the virus has orchestrated a likely permanent change in the political and economic direction of many countries. This new-found economic direction analyzed from a single country’s perspective and with China in mind provides bleak reports on the nation’s positive progress in the coming months.
The manufacturing activities, as well as the entire industrial production, which are the primal strengths for the country, were gravely affected as they closed for the lockdown. In essence, these facets fell sharply – a situation that has never been experienced in three decades. More information justifying the decrease arises from World Bank economist who declared in January that the country would have an economic growth rate of 5.9% this year (World Bank). Surprisingly, these figures were borne from an expected slowdown in economic activities considering the domestic and external headwinds the country was facing. Back then, the country was involved in a major trade war with the U.S. meaning that smooth business activities would be curtailed significantly. This presupposition lied in the fact that the U.S. had the upper hand because it was the primary buyer resulting in its unfavorable balance of payment (Long). Consequently, if it decided to halt its buying and do it from other countries, then China would face major hurdles in improving its economy.
The emergence of the virus meant that even the businesses that the country had with other nations were at risk albeit the little or so they would transact with the U.S. The present shocks are deep and their prevalence in terms of duration is uncertain. There are chances that the financial stress thereof would stretch beyond 2020. Economic sectors such as commodities, tourism, and trade which rely significantly on volatile financial flows and ones that China is greatly involved in, are very highly affected. On March 25th, 2020, Foreign Policy reported that lockdown in major parts of China had been withdrawn “after two months of a near-total lockdown” (Johnson). Several manufacturing plants include automobiles, steel, and electricity are back to their almost-ordinary levels. This step offers a glim of hope, but the second most important question comes into the fold.
Presently, many citizens are afraid that the virus might not have shut considering that information from the Chinese could be considered false negative. The people have learned that during a pandemic like this, savings are quite important for their self-sustenance and that of their families. In this regard, many of them will refrain from spending their hard-earned cash and save in the light of the possible adverse economic crises that would arise. This challenge is the one facing China while rumors persist over a lab in Wuhan that is hosting thousands of viruses (Brewster). The legibility of these rumors is yet to be ascertained, but still, citizens have the right to be concerned. On the other hand, an efficient economy runs through a complete cycle of production and consumption. Customers have to spend for this cycle to continue and for the economy to flourish. This situation is one that is undermining Chinese efforts at the moment. Owing to this concern and that of the international trade, China is likely to experience slowed economic growth rate that could extend to the late stages of this year.
An Economic Balance Predicated on Self-Reliance and Globalization
China entered the international space as the result of the free trade agreement proposed by many governments across the globe. It had the upper hand in that it possessed highly skilled laborers and relatively available ones. Moreover, their wages were quite less compared to developed nations in Europe and North America. This dynamic postulates that the times when economists would often advocate for their leaders to focus on energy or food security policies are passed. In this case, the resultant globalized world meant that the governments would turn to their partners when they lacked or did not have sufficient production of their own.
In a watershed moment, the situation has changed to one that is quite worrying. Suddenly, countries have closed their borders, governments are clinging tightly to medical equipment as well as face masks and more importantly, many are struggling to source and replace supplies. Global and regional leadership has been called into question many times during this crisis. Further, the virus has shown no immunity to any possible barrier out there may it be national, cultural, ideological, or individual. It does not care for any discriminatory lines regardless of whether one is strong, weak, rich, or poor. In essence, it has humbled every individual regardless of their status and made them feel vulnerable. The virus has reminded every stakeholder that the primal political and economic unit remains to be and will be the nation-state. Consequently, this assertion will have national implications on China and ones that the government will be keen to establish to be in a favorable posi...