Amid the apocalyptic aftermath of the COVID-19 pandemic, the US and the EU are determined to revise their economic relations with China. On the one hand, advanced global economies are ready to pose a challenge to China’s economic expansion. On the other hand, American and European companies will find it hard to relocate their manufacturing facilities out of China to domestic sites. One thing is certain that China owes its economic boom to Western investment. Indeed, 20-25 years ago, China’s economy was ranked at the bottom of international ratings. It terms of the gross domestic product, it gave way to other emerging markets, for instance Russia.
Thanks to massive Western cash inflows, China has secured the status of the second largest global economy. The International Monetary Fund added the yuan to the basket of reserve currencies. Factories built by foreign companies ensure the lion’s share of jobs for local people. Besides, overseas investment, technologies, and sales markets for China-made consumer goods create perfect conditions in the country for boosting its economy. However, Beijing felt the intoxication of success, crediting the economic boom entirely to its merit. The Communist leaders downplay the Western contribution to China’s economic boom.
No wonder, both the US and the EU toughened their stance against Beijing. Over 80% of American and European manufacturers are thinking about scrapping their partnership with China. So, the country could be facing gloomy prospects.
