“Made in China” China’s economy as its borders open

dropped as a result of decreased output from its factory in China under Covid-19 restrictions.

“Made in China.” This is the phrase we see on our clothes, computers, toys, jewelry and the list goes on. However, what is the economic market that is behind these three words? How has the pandemic and the recent reopening of Chinese borders influenced its production?

MAIA BARANTSEVITCH & ELLIE YANG Editors-in-chief

Astudent walks into the Apple store in hopes of obtaining a new charger for their computer, but to their surprise, Apple is out of stock. This might have been the case for you last year, when Apple’s stock

Since the start of the pandemic in 2019, many Chinese factories have stopped production, causing a decrease in China’s manufacturing output. In 2020, China’s annual GDP growth rate dropped to 2.2% compared to the previous six percent in 2019. This number increased in 2021 to 8.1% when the pandemic in China stabilized, and is predicted to drop back down to 3.3% in the upcoming 2022 data. Now, with the recent reopening of Chinese borders and an increase in international trade, the International Monetary Fund (IMF) has predicted a GDP growth of 5.9% for 2023.

These predictions correlate with the increase in Chinese products in the international market as factories return to full capacity. For example, metal processing companies around the world are seeing the reopening of the Chinese economy and borders in a positive light. China’s non manufacturing PMI has increased from 41% in 2022, to most recently 54%, showing an increase in employment, inventories, and production. Senior Youri Lee, head of the economics club, said, “Iin terms of opening trades, it is definitely a positive for both China and the world. Especially in the United States, as China opens up the exports, it will decrease the price of the goods in America, which will help America’s objective to decrease its inflation rate.”

However, behind this positive trend of the moment, many western companies have begun to, and are shifting their factories to be located in southeast Asian countries such as Vietnam and Indonesia. This could be a result of many factors: including the pandemic, Chinese foreign policies, and the price of labor. Lee said, “Contrary to common knowledge, Chinese labor price is actually rapidly increasing at a point that the Vietnamese market is becoming more attractive.”

Politically, China’s international policies and stances have also prompted some companies to move out as fear of tense foreign relations arise. Sam Scheinbach, senior and student in the economics course, said, “China’s economy is likely to grow in the near future, but if they keep making the wrong moves with Taiwan and other foreign policies, then it will probably go downhill in the future.”

While the “Made in China”’ tags seem to push the prominent role the country plays in the global supply chain, the country’s high population and demand might also be an important factor upon its reopening. There have been concerns surrounding the pent-up demand in China after three years of pandemic restrictions. Many fear that global inflation might worsen as demand, in particular for energy and gasoline, rises since China holds the second largest consumer population in the world.

From water bottles to keyboard circuits, China’s manufacturing power has continued to hold power over our country’s consistent consumerism. Looking forward, there are positive, negative, and mixed predictions for the future as China reopened its economy. But one thing is for certain, after the ups and downs of pandemic policies, “Made in China’’ stickers are coming back. Lee said, “As China opens their borders and increases manufacturing, it is almost certain that it can help the global economy in the near future.”