“Amidst all the noise of de-coupling and de-globalization, somewhat unexpectedly, the pandemic has deepened ties between China and the rest of the world,” wrote Larry Hu, China’s chief economist for Macquarie Capital, in a statement. research report.
“After recovering from its own Covid-19 crisis, China was open for business as the pandemic triggered a huge demand in the United States (and other countries) for Covid-19-related goods,” Kuijs said.
Meanwhile, China’s trade relations with the United States became even more unbalanced: Beijing’s trade surplus with Washington rose to $ 317 billion by 2020, a 7% increase from the previous year and the second-highest amount recorded, according to Iris Pang, chief economist for Greater China at ING . The amount is only 7 billion. $ Shy from the 2018 level when Trump launched a blistering trade war to correct what he called a skewed relationship with the world’s second largest economy.
“Judging by the rising US imports from China in 2020, it seems fair to say that Trump’s trade war with the country failed,” Kuijs said.
“As [China] plays a critical role in many supply chains and remains a fundamentally very competitive place to produce, it’s much easier said than done to ‘disconnect’ from it, “Kuijs said.
However, China’s future is not without its challenges. Analysts point out that President-elect Joe Biden is unlikely to turn around any of the pressure on the country after he takes office next week.
“The Biden government will take a different, less belligerent and more stable approach to China,” Kuijs said. “But it is politically not possible for Biden to remove tariffs on Chinese goods soon.”