The United States vs China’s Economy After Covid-19 (Essay Sample)

The United States vs China’s economy after Covid-19
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The United States vs China’s economy after Covid-19
Introduction
Chinese economic growth is set to increase amidst the covid-19 pandemic. As indicated by Zhao (2021), the article explains that china economic growth is accelerating a year barely after the pandemic lockdown. The success of the Chinese economy can be attributed to the stringent measures in control and handling covid-19. The economic growth in Chinese markets allows them to have a huge share in global trade and investment. According to Sulaiman et al., (2021), the economic survey indicates that the world’s second-largest economy is experiencing a 2.1 % per cent in gross domestic product. The only large developing economy to avoid a contraction within the year 2020. The world bank explains that the global output in production declined by 4.2 following the effects of the pandemic. Therefore, with the decline in productivity and increase in GDP in china, it develops a toppling condition where China is rising to be a world leader in economic development.
Post covid-19 Recovery
The growth in the Chinese market is expected to grow as the country continue to lead in the Asian market. Allam et al., (2021) adds that the economic growth is not expected to flip once different countries recover during the post-covid-19 period. Fast-paced economic growth in China supports the hypothesis. It has been indicated by Sellapperumage (2021) that following 2020. The Chinese market share is expanding by 8.2, thus outpacing other economies such as the United States of America. China is on course to pass the United States of America as the biggest economy. The success of China is attributed to its increase in market size and GDP output. China, with an increasing population, can offer a huge market than the American market. At the same time, growth in GDP grants the country a higher domestic consumption attracting foreign investment. Therefore, it is projected that by 2028 china will be the biggest market.
On the other hand, the expansion and growth of china are attributed to the trade relations and ties with America. The Trump regime led to different economic ties with China, setting the stage for international relations. As the United States of America pulls away from china, the Chinese market has deepened its economic ties with Asia, Europe and Africa (Cisneros Yánez, 2021). The new stage of foreign investment coupled with increased domestic output is defined to power the next phase of its growth. On the other hand, the time and situation were in favor of china following domestic unrest in the USA. The Chinese market, unlike the American market, can experience domestic stability with an increase in foreign investment.
Covid-19 control and vaccination is a potential growth measure for China. As the world shifts its attention to vaccination, it sets the stage for economic recovery. As attributed to large production, European and USA companies are set to look to China for growth in the post-pandemic situation. Covid-19 containment measures include reduction in domestic production, increase in digital consumption and increase in social distance. However, with its attribution to increased containment measures, the Chinese market has been discussed by Sulaiman et al., (2021) as among the fast nations to embark on economic productivity. Therefore, with a reliance on digital consumption, Chinese exports had grown by 3.6 per cent in 2020. The figures are hypothesized to stabilize as the whole world focuses on exports to reduce their cost of production.
Different projections indicate that China's growth is likely to be sustained past the post-covid-19 pandemic recovery. The Fortune global 500 list of the world’s largest companies by revenue indicates that more companies are based in China than in America for 2020. Additionally, foreign debt added to the Russell benchmark index separates the growth in China and America. It analyses the situation indicating that as debts increase in the American market, the Chinese market is attracting foreign investments. As such, the Chinese economy is set to benefit from low-interest rates compared to the American economy. Sellapperumage (2021) indicates that foreign investment led to 170 USD billion in the Chinese market.
The Chinese role in the global market enhances the urgency of the world in relating to its market. A difference is set with the American market as Trump’s administration levies tariffs and trade barriers; the Chinese market is opening its market to the global economy. As a result, countries have sought closer trade ties and investments with China.