Calls to decouple from China are becoming less of a reality as the country’s share of global trade soars, proving that cutting trade ties with the world’s second largest economy is a lot stickier than expected, analysts say.
Despite the push for decoupling from Washington and some other Western countries, China looks likely to maintain its integral position in global supply chains after the coronavirus pandemic, said Louis Kuijs, head of Asia Economics at Oxford Economics in new research published on Tuesday.
During the pandemic, China stepped up its drive to improve supply chains, including cutting transport fees and ensuring smooth port logistics, he said. “China’s strong export performance since the outbreak of the Covid-19 pandemic underscores that the global supply chains developed in recent decades – and in which China plays a key role – are much ‘stickier’ than many suspected,” he said.
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