The Growth Of The Chinese Economy In 2020 – China’s Economic Success This Covid-19

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2020 was observantly a difficult year for nation-states and their economies with the unprecedented emergence of the coronavirus and a suspension of economic influx that some states are heavily reliant on. National lockdowns and the closure of borders consequently led to a freeze in the importing and exporting of goods internationally and thus, substantially affecting the economic projection of nation-states. Although China was grossly affected by the pandemic and the first to announce cases early last year, their economy grew despite having closed their borders and seen a contraction to their economy for the first time in decades.

How China Rebuilt Their Economy…

The growth of China’s economy – in defiance of covid-19 – is ultimately down to one of many reasons including Beijing’s almost immediate response to the pandemic in order to obtain the virus. As of October 2020, China had confirmed 90,604 positive coronavirus cases and 4739 deaths whilst the US had confirmed over seven million cases and over two hundred thousand deaths. Additionally, the UK – as of October of last year – had confirmed five times as many cases like China and nearly ten times as many deaths despite having a population that is nearly 20 times smaller. Thus, leading to the introduction of what separated China from their competing economies

Surviving the pandemic…

Despite having been the first country to have been directly affected by the virus, China’s reaction time and proficiency aided them in tackling the spread of the virus but also aided them in the growth of their economy even if it was unforeseeable. It could be argued that China’s reaction to the virus is a result of being well equipped after the SARS outbreak in the Asian state in 2003 which arguably had similar outcomes to that of present-day nation-states such as a lack of healthcare equipment.

For the first three months of last year, the positive narrative China finished the year with was not the narrative they began the year with. For the first three months of last year, after having to close their borders, China experienced a shrink to their economy which was a result a nationwide shutdown of factories and manufacturing ports – grossly affecting the importing and exporting of goods. China’s economy shrank 6.8 per cent which was the first contraction the state had seen since they started keeping records of their quarterly figures in 1992.

As the summer months started approaching in the plight of the pandemic, China’s economy was beginning to look as though it was going to take a V-shaped turn. By July 2020, their economy had grown 5 per cent after an ample increase in the supply and demand for Chinese goods. The goods in question are inclusive of work from home technology and healthcare equipment which was a reflection of other nations implementing their own lockdown measures and experiencing shortages of focal healthcare equipment.

As a result of this, the efforts to shift from an export centred economy quickly deviated to a consumer centred as a result of the change of pace. Consequently, this led China to be the only state to report economic growth coming out of 2020 and finishing the year with a GDP (Gross Domestic Product) of 6.5 per cent.

It is predicted that within the next ten years, China may go from being the world’s second-leading economy to the world’s first. The approach in tackling the virus has largely been advantageous to China; by 2025 they are estimated to have had an annual GDP increase of 5.7 per cent and 4.5 per cent thereafter. The same cannot be said for America nor European states as the repetition of lockdowns are doing more damage than good to their economies.

Conclusively, it is evident that China was arguably well equipped for the reoccurrence of an epidemic and was proficient in closing its borders in order to obtain a potential spread of the virus. Surprisingly, the Chinese economy grew despite the closure of manufacturing and factories which enabled them to exit 2020 being the only economy to have seen economic growth.

The surge in their economy is down to many factors but one significant factor is the increase in the supply and demand of goods being exported from China and the practicality escorted by the state inducing more consumer-focused trade. Ultimately, China’s swift and immediate response to the virus has favoured them immensely and will continue to do so.

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