This was supposed to be the year that China’s export machine began to clog. Given Trump administration tariffs on Chinese products, factories folded by the coronavirus crisis and countries forcing companies to shift their logistics elsewhere.
However, China has bounced back flourishing. The country started reopening businesses in late February, after which factories’ exports soared across sectors, reaching their secthe-highest level ever in July.
China’s share of global exports rose close to 20 percent in the April to June quarter of 2020, up from 12.8 percent in 2018 and 13.1 percent last year, according to IHS Markit, a global data firm.
China depends on low-cost, skilled labor and efficient infrastructure. China’s state-controlled banking system has offered businesses more loans to survive.
Its factories make what people need and want right now: medical gear, home improvement products and consumer electronics.
Contrast in India
The economy deflated by 23.9 percent in the second quarter. It was the most acute fall in decades, as restrictions to prevent the spread of the coronavirus dissolved jobs and businesses.
That showing is the worst among the world’s top economies. The construction, manufacturing and transit industries were among the most affected.