China was one of the most coronavirus-influenced countries from both perspectives. On the one hand, many people experienced social instability due to the significant number of deaths and strict lockdown measures. On the other hand, China critically changed the attitude to international counteragents from “the third-world country” to equal trade partners with many competitive advantages (Ferchen n.p.). While the Chinese economy experienced significant losses owing to the lockdown limitations, the coronavirus pandemic disclosed many market-maker possibilities for the country to raise its competitive edge in specific industries.
First and foremost, the main drawback of the epidemiology crisis for China and the world is that many shipping delays were experienced, which led to the significant deficit of materials in many industries. From the China perspective, the country’s marine ports restrictions resulted in disruption of many product’s supply chain (Tan n.p.). Consequently, global companies are trying to overcome their products’ delivery to make the chain more stable from the resulting side and flexible from the approaching perspective.
Secondly, the pandemic disabled many Chinese students to gain their higher education in the USA, which is the ultimate leader in the sphere of education. As a result, while the Asian country experiences a significant increase in its educational advance, the overall “brain war” decreases the chances for China to possess absolute leadership in technological prosperity (Gerlis n.p.). While Asian students have better results compared to other world students, the educational system plays a pivotal role in their future vector of development, so that it is critical for China to resolve the issue of academic stagnation.
Thirdly, due to the lockdown of global measures, Chinese automakers won an exceptional opportunity for gaining a competitive advantage in the automobiles and electric vehicles market. To be more specific, the Asian auto market is the biggest and most diversified in the world. Many people have not bought their car yet, even though they have money to make the purchase. The main benefit for production opportunities was gained when Tesla was banned by Chinese communist party owing to the political factor of the USA’s possible influence on the automobile market (Hamlin n.p.). Today, many companies, such as NIO, can become worldwide car makers, positively affecting the Chinese competitive advantage during the trade war.
Last but not least, financial markets have experienced one of the best opportunities for rising in the stock market history. Many global indexes increased more than twice a year, disclosing capital market possibilities for significant future development. For China, it is crucial to develop its stock exchange because many companies waiting for Initial Public Offering (IPO) might provide their listing in the American stock exchange. Partly, the communist party banned this possibility for unknown terms (Yeung n.p.). However, many technology companies are now choosing to begin working with the Asian stock exchange market, which is a positive sign for the Chinese stock exchange market.
Overall, due to the partial effects of many factors, China strengthened its economic position from the world’s perspective. While shipping outlays negatively affected Chinese ports’ credibility, their technological advancement, automobile, and financial markets gained exceptional opportunities for the development. From the trade war perspective, China neither gained a significant competitive advantage nor lost its positions in valuable markets, which did not change, but mainly transformed the economic interconnections between two countries.
Works Cited
Ferchen, Matt. “How China Is Reshaping International Development.” Carnegie Endowment for International Peace, 2020. Web.
Gerlis, Jason. “China, US Trade War A Duel Of Brains And Brawn.” International Law – Worldwide, 2019.
Hamlin, Katrina. “Tesla Will Give up Pole Position in China.” Reuters, 2021.
Tan, Weizhen. “Another Shipping Crisis Looms on Covid Fears in Southern China.” CNBC, 2021.
Yeung, Karen. “Could US-China Tensions Hinder Beijing’s Plans to Integrate Further with Global Financial Markets?” South China Morning Post, 2021.