Why pessimists are wrong about Chinese economy

GLOBAL SUPPLY CHAIN STABILIZER

The Western media claimed that China's fight against COVID-19 may lead to a supply chain crisis. Instead of blaming China, they should first reflect on the "de-globalization" and protectionism advocated in their own countries.

While the United States and other Western countries are undergoing supply chain disruptions caused by the labor shortage crisis and a massive backlog of cargo at several ports, China has played a vital role in maintaining the stability of global supply chains with its solid industrial base, resilient supply chain and science-based policies.

From January to April, China's total imports and exports expanded 7.9 percent year on year to 12.58 trillion yuan (about 1.9 trillion dollars), proving that China has successfully minimized the epidemic's negative impact on trade.

Although trans-regional cargo transport in some parts of China was temporarily disturbed by the new wave of Omicron, most of the supply chains within the country are operating smoothly. Impacted factories are gradually resuming production, allowing China to continue contributing to world supply chain stability.

"China still holds the cards for global supply chains," CNBC wrote on May 16. In the same piece, Vishrut Rana, a Singapore-based economist at S&P Global Ratings, was quoted as saying, "China still remains at the very center of the electronics network" the Asia-Pacific region.

Rana added that "the movement out of local manufacturing is not going to be significant enough to really alter the nature of China's role in the overall supply chain."

Photo taken on May 17, 2022 shows a view of the automated container terminal of Shanghai Yangshan Deep Water Port in east China's Shanghai. (Xinhua/Ding Ting)