Post Coronavirus, China Looks Set To Grow While The Rest Of The World Contracts
The relation between the United States and China is on the verge of a break-off. Many analysts have provided hints on the emerging global landscape since the annual parliamentary meeting in China had come to an end.
The week-long meetings concluded on sending powerful indications to its citizens and the entire world that they have overcome COVID-19 and are set to restart businesses shortly.
China was the first country to initiate a total shut down following strict safety measures to combat the COVID-19 crisis and it also placed itself as the first economy to start over in March.
The National Bureau of Statistics stated that the economy slowed down in the first quarter but subsequently increased in the first half itself.
This meeting also introduced a security bill for the semi-autonomous region of Hong Kong that has put on powers to the central government for crushing any sort of conflict. This security bill came into action because of the US President's announcement of eliminating Hong Kong's unusual trading stature with them.
The US Government has been rigid in dealing with China. From abandoning Chinese stock listing to making an effort of hamstringing their telecommunication friend Huawei, this geopolitical war is expected to broaden even more after the election.
Previously, the Chinese economy faced a 6.8% reduction but China came off strongly post corona and reported 3.2% growth whereas other nations are still tackling the pandemic following total economy shut down. The analyst predicted the Chinese economy will see a 1% to 3% growth in 2020 whereas the U.S. will face a terrible decline of 6%.
According to Bill Adams, "China is getting on its feet strongly because of its manufacturing unit". China has started off strongly by manufacturing products and is no longer dependent on other countries.
In June, the figures for factory output show remarkable growth of 4.4%. The retail sales faced a decline of 3.9% but online retail sales recorded 14.3% expansion.
The Chinese administration has promised to expend $280 billion to meet its goals and produce 9 million jobs to overcome deprivation. The ruling party has refused to join Japan and the United States 1 trillion packages.
Many analysts are revealing that the United States has a surplus business investment at risk in HK. Brue Pang has stated that the US economic market is under pressure to send more companies to the HK Exchange.
Chinese leaders have given prominence to boost the businesses ready for investment. They are keeping all the foreign firms on the unreliable entity list to stimulate their domestic firms and boycotting products from other countries.
George Friedman, in a phone interview, said that the conflict between China and the US gave birth to trading interception and now China is ready to deal with the problem by expanding and consuming domestic products.