Chinese Manufacturing Is Quickly Collapsing | Eastern North Carolina Now

    Publisher's Note: This post appears here courtesy of the The Daily Wire. The author of this post is Ben Zeisloft.

    One of the most noteworthy geopolitical and economic developments in modern history has been the emergence of China as a superpower. The miraculous rise of the once-ascendent communist nation, however, could lose tremendous momentum as the strength of its manufacturing sector rapidly dissipates.

    China's gross domestic product has expanded at an average of 9% since the country opened and reformed its economy more than four decades ago, according to data from the World Bank, enabling more than 800 million residents to escape poverty. Over the past two years, however, the Chinese government has been among the most zealous enforcers of COVID lockdown policies on the planet.

    Quarantines mandated under the nation's zero-COVID policy have fostered unpredictable supply chain shocks for foreign companies in recent months, causing a push to build manufacturing and logistics capabilities elsewhere. American manufacturing orders from China have plummeted as much as 40%, according to data from the CNBC Supply Chain Heat Map.

    "The fall in demand is a combination of persistent COVID-19 related shutdowns in China leading to bottlenecks in the export of products out of China, lower American consumer spending on merchandise goods, and supply chains gradually moving out of or diversifying away from China," Hudson Institute senior fellow John Lee told The Daily Wire. "The latter reason will be a major cause of lower American demand for Chinese goods in structural terms as more goods into America will come from other markets."

    In one high-profile example, an iPhone manufacturing facility in Zhengzhou was rocked by protests over zero-COVID restrictions, severely disrupting operations and leading Apple to accelerate production shifts to economies such as India and Vietnam, according to a report from The Wall Street Journal. The world's most valuable technology company had already moved some iPad production earlier this year to Vietnam, where the AirPod earbud series is manufactured, in reaction to lockdowns in Shanghai.

    Lee, who formerly worked as senior national security adviser to Australian Foreign Minister Julie Bishop, remarked that "permanent geopolitical tensions" are another factor behind the "deliberate decoupling" of manufacturing deals between the United States and China. The trend is especially apparent in the technology sector, which has been the subject of increased scrutiny over American regulators' unease regarding Chinese espionage and intellectual property theft.

    "In most merchandise goods which are not high-tech products, the supply chains moving out of China due to firms hedging against geopolitical tensions will continue to be a cause for lower American demand of Chinese goods into the future," Lee commented. "Hence, it is geopolitical tensions leading to lower American demand for Chinese goods rather than lower American demand being the cause of geopolitical tensions."

    Staunch geopolitical aggression will likely be a central tenet of the nation's foreign policy in the foreseeable future. Chinese President Xi Jinping, who recently began an unprecedented third term, lauded the defeat of democratic aspirations in Hong Kong and forecasted the imminent conquest of Taiwan in a speech at the Chinese Communist Party's twice-per-decade meeting of senior legislators. The executive has largely staked his reputation as a leader on the zero-COVID policy over the past two years.
Go Back

Leave a Guest Comment

Your Name or Alias
Your Email Address ( your email address will not be published)
Enter Your Comment ( no code or urls allowed, text only please )

Indiana Sues TikTok Over Data Sharing, Mature Content Concerns Business Trends, Daily Wire, Guest Editorial, Editorials, Business, Op-Ed & Politics, Regional Business In The Name Of ‘Equality,’ Nantucket Beaches Go Topless


Latest Regional Business

New business creation filings grew 40% in 2021 over 2020, for a total of 178,300 new businesses in the state.
North Carolina has been named the 2022 State of the Year by Business Facilities magazine. The state previously won the honor in 2020.
Wells Fargo announced a pivot toward offering home ownership services for minority applicants even as the firm pulls away from the mortgage correspondent and servicing businesses.
Extending over 2.57 acres (if purchased in one block), this Commercial Corner, the former John H. Small property, is now for sale, and may be sold as one tract, or sold in building footprints.
A number of entertainment conglomerates and media companies are announcing layoffs as the macroeconomy continues to impact several industries.
Inspired by the recent actions of new Twitter owner and chief executive Elon Musk, more business leaders in California’s Silicon Valley are dismissing surplus employees.
One of the most noteworthy geopolitical and economic developments in modern history has been the emergence of China as a superpower. The miraculous rise of the once-ascendent communist nation, however, could lose tremendous momentum as the strength of its manufacturing sector rapidly dissipates.
Building permits are down more than 15% from a year ago.


North Carolina places 10th in the nation for its tax environment, according to new rankings from the Washington, D.C.-based Tax Foundation.
Ongoing trend continues of companies not living up to their economic promises to North Carolina despite JDIG incentives.
Unemployment increased in 99 of North Carolina’s 100 counties last month according to the latest release from the state’s Department of Commerce.
American retail expenditures declined 0.6% between October and November, according to data released on Thursday by the Census Bureau.
WASHINGTON, N.C. (Dec. 9, 2022) – UScellular has appointed Dusty Hathaway to sales manager for the company’s Washington location at 875 W. 15th St.
The nonprofit Tax Foundation has released its State Business Tax Climate Index each year since 2003, distilling complicated tax environments into a simple and easy-to-understand ranking. The index is focused on how states generate revenue, not how much.
Only minutes from Greenville and Washington, we offer these unique high lots (no flood insurance) above the wide waters within the Pamlico Estuary, where one can build their dream home.
The last few years have seen an exploding housing market, with the costs of homes surging amid low inventory, but now, experts say the market has taken a turn, and the U.S. has now entered a housing recession.
SECU Foundation recently provided a $40,000 grant to TimberKnolls Spirit Cove (TSC), an organization that provides animal-assisted activities and therapy to veterans, military families, first responders, healthcare workers, and people battling illness or trauma.


Back to Top