Corona globalization ... How will the epidemic make China lead the world "economically" and push America back?
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| Coronavirus |
The new Corona virus represents an incredible test of globalization. the foremost important supply chains have collapsed, countries have rushed to accumulate medical supplies and ban travel and travel, and therefore the crisis has become an important for a comprehensive reassessment of the interconnected global economy.
A document between companies and countries has made the latter more susceptible to receiving catastrophic shocks. Only now are countries and corporations exposed to their vulnerability and fragility.
But the lesson of the new Corona virus isn't the failure of globalization, but rather its fragility, despite or maybe due to its advantages. for many years , companies ’efforts to urge obviate the excess have resulted in an unprecedented wealth, but these efforts have also reduced the quantity of unexploited resources - which economists ask as“ surplus ”- within the global economy as an entire . In normal times, companies often see "surplus" as a sign of idle or wasted production possibilities. In times of crisis, a scarce surplus can hack the larger system by eliminating necessary precautions to stop its collapse.
And the shortage of reserves of those manufactured alternatives can cause supply chains to collapse, as happened to some medical and health sectors as a results of the Corona virus, as countries providing medical services faced an enormous increase in global demand, which prompted them to compete with one another over resources, leading to a shift in power dynamics Among the economies of the superpowers, where the countries that are prepared to confront the new virus work either to accumulate resources for themselves or help the powerless countries, which can eventually lead these countries to increase their influence on the planet stage.
Shaky effect
Prevailing ideas say that globalization has created a thriving global marketplace that permits manufacturers to create flexible supply chains which will be the choice to at least one supplier or support for an additional supply chain as required .
Adam Smith's book, The Wealth of countries , has become a worldwide treasure from which businesses have benefited within the division of globalized business; Specialization provided greater effectiveness, which successively led to growth.
But globalization also created a posh interconnected system, during which companies embraced the doctrine of supply chains that led to the emergence of an interwoven fabric of production networks that woven threads of the worldwide economy together, and parts of one product were manufactured in dozens of nations . This tendency towards specialization has sometimes made it difficult to seek out alternatives, especially for rare skills or products.
With the trend of production towards globalization, countries became more interdependent and hooked in to each other , which suggests that no single country can produce all the products and parts that its economy needs. National economies were assumed to be included during a huge global network of suppliers.
But the epidemic caused by the "Covid-19" Corona virus reveals the fragility of this globalized system, where some economic sectors - especially those with high levels of surplus and whose production is spread during a number of nations round the world - can cross the crisis relatively well. While other sectors can find themselves on the brink of collapse if the epidemic limits the power of a supplier in one country to supply the required , widely used piece. for instance , car manufacturers in Western Europe are concerned about the shortage of precision electronic parts after forcing the only manufacturer, MTA Advanced Car Solutions, to halt production at one among its factories on Italian soil.
With the spread of the new virus, some countries acquiesced to their worst instincts. Even before the Covid-19 outbreak, the Chinese manufacturer was producing half the medical masks round the world.
As a results of the crisis, Chinese manufacturers worked to double production, but the Chinese government bought full supplies of masks across the country.
In conjunction with importing huge quantities of masks and masks from abroad. China undoubtedly needed masks, but the buying spree caused a huge supply collapse that limited the response of other countries to the disease.
The behavior of European countries was no better than its Chinese counterpart, as Russia and Turkey banned the export of masks and medical masks, and Germany followed suit albeit it's a member of the ecu Union that's alleged to have a “single market” and unrestricted trade within member states. As for the French government, it's taken an easier step in quarantining the available masks, and voices within the European Union have involved measures of this type to undermine solidarity between the countries of the Union and stop the likelihood of finding a standard approach in combating the new virus, without finding listening ears.
Viral effect
While the Trump administration has used the pandemic to evade global integration, China is using the crisis to demonstrate its resolve to steer the planet because the first country to be hit by the Coronavirus, China has suffered badly over the past three months, but it's recovering at this time that the remainder of the planet is surrendering to the epidemic.
This poses a drag for Chinese manufacturers, many of whom are beginning to rise again but facing weak demand from countries in crisis, but this provides China a short-term opportunity to influence the behavior of other countries. Despite the mistakes initially made which are likely to cost thousands of lives, China has learned to fight the new virus, and it also features a stock of kit , which may be a valuable asset that China has skillfully employed.
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