China’s economic recovery clouded by coronavirus, US decoupling threat and sluggish export outlook
- As logjams in the global supply chain ease, China is losing the edge it had when Covid-19 disrupted production in the rest of the world, economic official says
- China has met global demand for medical supplies, electronics and car parts over the past three years, but it is unclear where its next advantage lies
Sluggish external demand, fading supply chain advantages and decoupling threats could be the key challenges for China next year amid strong domestic headwinds, according to a leading researcher with the country’s top economic planning agency.
As logjams in the global supply chain ease, China is losing the edge it had over the past three years when the coronavirus disrupted production in the rest of the world, said Liu Xueyan, a researcher with the Academy of Macroeconomic Research at the National Development and Reform Commission.
“If there is an upsurge in exports, it’s likely linked to Europe’s energy crisis,” Liu said at a seminar held by the National Association of Financial Market Institutional Investors on Saturday.
“Europe’s energy problems have not reached their worst stage yet. If the energy crisis persists under the current political state, it could be a window of opportunity for our energy-intensive industries, including petrochemicals and non-ferrous metals.”
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This could possibly help the country ease strains on exports and bring in more foreign capital, she added.
