As of March 25, the World Health Organisation (WHO) reported that 196 countries, areas and territories are affected by Covid-19. That brings us to the biggest worry associated with Covid-19, after its harmful impact on the human health — its long-term impact on the global economy. While most economic reports on the Internet today circle around the Western concern over the lifting of lockdown in Wuhan on April 8, an objective argument can also be made that China, as the first nation impacted by the virus, is also in the position of being the first to be able to manage the spread of the virus, and thus, resume its economic activities.There is a sense of economic solidarity in China’s move. Through the supply of medical equipment, medic teams and low interest loans, China’s economic revival strategy also caters to the livelihood of its Asian and Western trade partners. This is where the game-changing elements of Covid-19 can be found, especially in the observable shifts in global leadership and its potential impact on trade dependency and the realignment of Asian trade markets. With the strategic support given, China is effectively playing its role in reducing the economic and societal impact felt not only by its Belt and Road Initiative-friendly countries such as Malaysia, the Philippines, Pakistan and Sri Lanka, but also other severely affected Western countries like Italy and Spain. The countries assisted would not easily forget the aid given by China in their darkest moments, and this could influence their future decision on trade preferential treatment. Therefore, even while certain media are making reports on how there would be an economic shock following the resumption of economic activities in Asian countries post-Covid-19, in reality, the Asian markets have made a strategic choice of not putting all our eggs in one basket, hence ensuring that their trade operations would not be severely affected by the virus.
For that reason, should the economic restriction in Western countries be prolonged, the Asian market could undergo a massive realignment, from serving the Western market to serving their Asian counterparts solely in the name of economic survival?
https://www.msn.com/en-my/money/other/new-world-economic-order/ar-BB11NL9a
1 comment:
This is definitely something to think about moving forward. I think that no matter what China does during our economic standstill, we will still retain all of our relationships with our trading partners. Some changes may occur but I don't think we will be drastically effected.
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