Updated: Sep 5, 2021
China’s economy grew by 18.3% in the first quarter of 2021. This was after China’s economy contracted in 2020 because of the Pandemic. China’s strong desire to increase productivity and grow its economy has been demonstrated in the face of the pandemic and its challenges.
Image Source: Wall Street Journal
The main indication is that China has sought to create a self-sustained consumption-driven economy within its boundaries. This is one of the signature policies and actions of current leader of China – Xi Jinping.
Manufacturing is one of the areas that China has shown her strengths and quest to become a global leader. This laid the foundations for China to rapidly acquire productive technologies and deploy them quickly and effectively. This comes with vary ambitious growth targets that drives productivity systems and targets.
In 2020, China missed its high targets, but it remained relatively high enough to get China closer to its growth forecasts.
The proactive ideology of China culminated in quick recovery measures from a centralized leadership core that kept China focused on production. In dealing with COVID, China took advantage of its heavily regulated systems and kept production systems opened and functional throughout the pandemic.
China’s continuous manufacturing outputs contributed significantly to the survival of many European economies. This is because China exported manufactured products almost without interruption throughout the COVID-19 Pandemic. Europe and the western world ran into major conflicts and challenges that forced manufacturing to grind to a stop intermittently. However, China was always focused on production and the prevention of the spread of the pandemic.
Thus, the falls in China’s manufacturing rates were temporary. China’s authoritarian system was important in taking tough and decisive positions on its targets. This meant they could put things into use quickly and significantly to keep production in progress.
China was also very resilient as they were able to apply lessons they learnt from the earliest stages of the Pandemic. This process caused China to separate manufacturing from public safety which caused China to remain productive throughout the pandemic with a few minor reductions.
China is here to stay as a leader in manufacturing. It is busy securing a self-sufficient consumption driven economy while seeking to export to nations around the world. China has also acquired the necessary technologies and maintains an unprecedented efficient productivity system that is centrally controlled. The central control became useful in taking strict and effective action to protect manufacturing as the COVID-19 pandemic erupted. The west’s failures to keep a consistent manufacturing flow has shown serious gaps that place China in a top pedestal in the coming years. However, China is bound to start charging fair market values for their products, meaning China’s manufactured goods will get expensive over time.