China President Xi Jinping is using his recent trips to highlight the warning- The nation should remodel its economy so that it is self-sufficient and self- sustaining in this post-pandemic world.
Post pandemic market a worry for China
This post-pandemic world with its markets will be very much different from what they used to be. The markets are now a place of uncertainty, weakened demand, and hostility. The Global Markets have been shutting out its doors for China with countries like India and the US banning Chinese apps. The initiative as taken by Indian Prime Minister Narendra Modi of ‘Atmanirbhar Bharat’ has invited many foreign countries to set up their manufacturing centers in India rather than China as India is emerging as a new manufacturing hub in this post-pandemic market world.
Chinese manufacturers facing hostility
After experiencing hostility from the outer world, China needs its people to spend more and its manufacturers to be more domestic and innovative to ease the stress and dependence on foreign economies. Xi’s strategy is been dedicated to China’s more domestic economic growth and that China should be ready for the bad impact when American investors as well as other investing companies withdraw their helping hand completely.
According to Jinping China must “make breakthroughs in core technologies as quickly as possible”. Xi has called his new initiative a ‘dual circulation’ strategy. This name which he first used in May compiles that, now they should rely on the sturdy cycle of domestic demand and market innovation to be the main driver of the country’s economy. Foreign markets and investments should be the second choice.
Should prepare for the worst-case scenario
Now, more than ever, they should be prepared for the worst-case scenario. China should fear of being the complete outcast in the market world. The post pandemic world be primarily dominated by emerging Manufacturing hubs and investing hubs rather than being dependent on China.