The words “never under-estimate the Chinese” were ringing in my ears when I read this report from the New York Times saying “China Inc. has come roaring back. After reopening in late February and early March, China’s factories began an export blitz that is still gaining steam. Exports soared in July to their second-highest level ever, nearly matching the record-setting Christmas rush last December. The country has grabbed a much larger share of global markets this summer from other manufacturing nations, entrenching a dominance in trade that could last long after the world begins to recover from the pandemic”.
The NYT offers three main reasons for this:
- the country’s low-cost, skilled labor and efficient infrastructure
- a state-controlled banking system that has been offering small and large businesses extra loans to cope with the pandemic
- China is meeting the strong global demand for “personal protection gear, home improvement products and lots of consumer electronics”.
With regard to the last point, the NYT says “families all over the world are sprucing up the homes they are now stuck inside. They have been buying everything from computer screens and stereo systems to power tools and home saunas — many of which are made in China”.
Whatever you think of China’s political system, the people of China know how to respond to a crisis. They roll up their sleeves, get their heads down and work smart and hard. They also show amazing resilience, flexibility and tenacity. This isn’t mentioned in the three reasons given above by the NYT, but it is actually the main reason they’ve come roaring back.