Not many people would not expect the world to fall into such a difficult situation two months ago. Now, many countries have blocked their border and faced a huge setback in commercial profits to fight against the pandemic. Globalization is facing an irreversible change and the world in the post-pandemic time is destined to be different.
The whole crisis reflected the ills of globalization. The virus deepened people’s suspicions of foreigners; enterprises needed to redeploy global supply chain distribution; customs clearance and tightening of foreign visas, etc. World trend will be rewritten as follows:
1. Not More Rely on “Made In China“
While the US-China trade war has caused many manufacturers to withdraw their production line from China, but many foreign investors have been investing in China for years and were unwilling to take the initiative to change. Even the rise in China’s production costs, the local economy still has the advantages of high-efficiency logistics and a sizable economic scale. It wasn’t until this Wuhan pandemic that caused the irreversible changes.
A massive shutdown of Chinese factories has led to a 17% drop in exports in the first 2 months of this year which has interfered with the production of European car parts, iPhones and other types of commodities. Many multinational companies have to adjust their supply chains and invest more localized production to replace dependence on “Made In China” production.
One of the alternative options is to relocate the production line to other Asian countries such as Indonesia and Vietnam; another option is to shorten the length of the supply chain. The third way out is to invest in artificial intelligence and advanced technology to produce locally and bring closer to consumers.
We will continue to discuss next time other changes in this irreversible change. Share your thoughts below and to your friends and subscribe to the newsletter to receive more updated information from us.