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The West got it very wrong about Covid bringing an end to ‘Made in China’ goods

10 24 63

Google just made the surprise announcement that it will produce its new Pixel 6 smartphone in China, after previously confirming it would be manufactured in northern Vietnam. But as the latter battles with an extreme wave of the Delta variant of Covid-19, requiring military assistance to enforce lockdowns, Google’s plans have changed.

Instead, parent company Alphabet Inc. has turned back to China, something that few would have thought possible a year ago, given the incessant political talk in the media and political circles over ‘decoupling’. This was the idea that global supply chains would leave China altogether and look to other countries, such as India and Vietnam, who have cheaper workforces and could feasibly replace Beijing as the ‘world's factory’.

The outbreak of the virus in Wuhan and its impact on global supply chains, as well as President Trump’s tariffs on Beijing, encouraged these arguments. As investor Mark Mobius told CNBC in April 2020, “A lot of buyers and a lot of the people depending on the supply chain in China are now having second thoughts, and are beginning to diversify their supply chain as much as possible to be closer to home.”

Yet 16 months later, that hasn’t materialized. With China announcing that it has crushed the highly contagious Delta variant and reporting no new Covid cases, it’s clear that the country remains the most resilient, stable, and reliable supply chain in what continues to be an extremely uncertain world. Numerous pundits and outlets, largely out of political bias, got it completely wrong.

The reality is that Beijing has not lost its grip on........

© RT.com

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