Americans spend money that should have been spent on vacations, watching movies, and dining in restaurants on household items, such as new lighting equipment for home offices, fitness equipment in the basement gym, and children’s toys.
This is a good thing for China, which is the world’s largest manufacturer of many commodities. In November, China’s announced trade surplus reached a record US$75.43 billion. The fastest growing was exports to the United States, which rose 46.1% to a record US$51.98 billion. This breaks the predictions of US bipartisan politicians earlier this year that the epidemic will reduce trade between China and the United States and eventually bring manufacturing back to the United States. On the contrary, the long-term impact of the epidemic on the United States seems to only consolidate China’s manufacturing position.
At the beginning of this year, China adopted strict epidemic prevention and control and supervision measures to eliminate the impact of the epidemic. As a result, a large number of factories were able to resume work and production, and the degree of recovery exceeded that of American companies. With many American companies, especially service companies paralyzed by the epidemic, American consumers have turned to online shopping.
Mary Loveley, a senior researcher at the Peterson Institute for International Economics in the United States, said that this year’s US imports from the world may be lower than in 2019, but China’s share of total US imports may increase.
Foreman, the CEO of a toy company, said that in March and April this year, he felt “panic” about the business prospects, but “from June to August, (demand) was like a valve opened. Everyone realized that we were the demand for products from China and other Asian countries is not less, but more.”
Bicycle manufacturer Kamler said that earlier this year, China’s blockade caused production delays in its company’s factories in China, and the demand for bicycles in the United States began to surge because many people use bicycles as a recreational and exercise tool and as a means of public transportation. Substitute. The demand for bicycles was so strong during the epidemic that some people began to call them “new toilet paper.”
Forman said that he had considered relocating part of his business to Vietnam or India, as many people did in the trade war last year, but “stay in China ultimately became the best decision.” He said: “China still has the best production and supply chain in the world. Facts have proved that they can respond to the epidemic faster and more effectively than other countries. China has indeed challenged the limit and proved that they can overcome the difficulties, even if it is the most difficult test we have encountered in a hundred years.”