lørdag 23. mai 2020

China-led Globalization Is Coming To An End

Talk to someone in politics or in the markets about the possibility of a second wave of coronavirus infections in the winter and they will all say if that happens, China is toast. Or at least in very big trouble with its Western trade partners. Those partnerships matter to China. They matter to the existing system of trade and finance even more.

Maybe there is a second wave, and it is not as deadly. Maybe the virus itself, as contagious as anything we have ever seen before, is not as deadly as we thought. If so, China can breathe a sigh of relief there. It suffered as much as anyone, too. Let’s move on. Even so, moving on means moving on from China as the spearhead of global manufacturing. Those days are coming to an end.