Question

Explain how China is likely going to outshine the USA to become the world's leading economy. Consider the effects of COVID 19!

Answer 1

The COVID-19 has reduced the economic activities severely. There is a fall in output and employment. Thus, it is projected that world GDP will fall by over 2 Trillion dollars. The Chinese economy has shrunk for the first time in the last 35 years.

The Chinese economy is dependent on the export for its growth. The COVID-19 has reduced the trade and many countries have stopped importing from China, Thus China is going to suffer huge jolt after the COVID-19. All countries are following inward-looking policies. it would be a huge jolt to the economic growth of China.

US and other countries are holding china responsible for the economic and health crisis, thus these countries are going to take the stern action against the Chinese policies, apart from this, many firms are exiting the china and relocating to other countries. it would also affect the growth rate of china negatively. Thus, China is not likely to outshine US in the post-COVID-19 order.