Since the outbreak of COVID-19, the terrible situation has been with us for more than 18 months, and it has become more and more intense. Many countries have experienced work stoppages and even economic regressions.
Last year, China faced huge difficulties at the beginning of the epidemic. In the end, China’s exports increased by 3.6% year-on-year, while imports fell by 1.1%. What keeps China’s trade surplus from expanding further?
Let us see that it is mainly due to the following three factors:
1. Stable Raw Material Supply Capacity
China’s effective epidemic control capabilities have stabilized the market. The difference in epidemic control has caused China’s supply capacity to be much higher than that of foreign countries, and exports have had a significant substitution effect. At the same time, the lack of foreign supply capacity has also affected imports.
2. Stable Production Line
More than 90% of the vaccine injection rate, good mask wearing habits and safe social distancing have helped Chinese factories maintain stable production capacity; although the production of some industries has been impacted due to raw material supply and labor shortages, China as a whole the manufacturing production line still maintains a steady growth rate.
3. Stable Production Capacity
In view of the above two reasons, China’s manufacturing capacity has not been affected by COVID-19, even surpassed before the outbreak. At the same time, work stoppages and lockdowns in many countries have led to the suspension of domestic industries, further expanding demand.
Under these three main factors, China has achieved a reverse growth in its export volume during the epidemic. Taking alucoworld as an example, we still receive an endless stream of orders every month and continue to supply our customers with the best aluminum composite panels.
We have prepared a video to explain “Does Customers’ Importation Quantity For Alucobond Panel From China Decrease During Epidemic Period?”
Although the impact of COVID-19 is still there, over time the production capacity and demand of countries will be gradually repaired, but it is impossible to predict this time. Every major change will bring about drastic changes in the market, this is not a rare opportunity. If it can be prepared ahead of all its competitors, then it is possible to achieve growth in adversity like China.