Larry Hu, chief Chinese economist at Macquarie Capital, wrote in the report “Amid all the hype around de-coupling and de-globalization, and somewhat unexpectedly, the pandemic has deepened ties between China and the rest of the world.” Research report.
“After recovering from the Covid-19 crisis, China was open to business when the pandemic sparked a huge demand in the United States (and other countries) for goods related to Covid-19,” Kuijs said.
Meanwhile, China’s trade relationship with the United States has become more dysfunctional: Beijing’s trade surplus with Washington increased to $ 317 billion in 2020, a 7% increase over the previous year and the second-highest amount on record, according to Iris Pang, chief economist. For Greater China in ING. This amount does not exceed $ 7 billion from 2018 levels, when Trump launched a violent trade war to correct what he described as an unbalanced relationship with the second largest economy in the world.
“Judging by the increase in US imports from China in 2020, it seems fair to say that Trump’s trade war with the country has failed,” Kuijs said. He said.
“Such as [China] It plays a critical role in many supply chains and remains a very competitive place to produce, it is much easier to say rather than do to separate it from it. “
But China’s future is not without its challenges. Analysts suggest President-elect Joe Biden will likely not reverse some of the pressure on the country after taking office next week.
Kuijs said: “The Biden government will take a different approach, less combat and more consistent towards China.” But it is not politically possible for Biden to raise tariffs on Chinese goods anytime soon.