The risks of relying economically on the Asian superpower have never seemed clearer. But as the world tries to get moving again, it needs China more than ever
Giacomo Camarda, left, and James Camarda, rock lobster fishermen, work near Fremantle, Australia, April 29, 2020. Australia’s lobstermen are almost entirely reliant on China: By the beginning of this year, 95% of their catch was shipped there. (David Dare Parker/The New York Times)
As the coronavirus pandemic amplifies long-standing concerns over the world’s economic dependence on China, many countries are trying to reduce their exposure to Beijing’s brand of business.
Japan has set aside $2.2 billion to help companies shift production out of China. European trade ministers have emphasized the need to diversify supply chains. Several countries, including Australia and Germany, have moved to keep China, among others, from buying businesses weakened by lockdowns. Hawks in the Trump administration also continue to press for an economic “decoupling” from Beijing.
But outside government circles, in the companies where the decisions about manufacturing and sales are actually made, the calculations are more complex.
China is a hard habit to break.
Even after its early mishandling of the coronavirus disrupted the country’s ability to make and buy the world’s products, further exposing the faults of its authoritarian system and leading it to ratchet up its propaganda war, China’s economic power makes it the last best hope for avoiding a protracted global downturn.
©2019 New York Times News Service