How China is using COVID-19 crisis as an opportunity
China is eyeing this crisis as an opportunity and is taking advantage of COVID-19 not only to revive but boost its economy.
Friday, 27th March 2020
The Coronavirus or COVID-19 has brought life to a near standstill in almost every part of the world. The epidemic, which dawned in central China's Hubei Province has taken costed life of more than 20,000 people and proceeds to affect more than 500,000 people all across the world.
Monopolization of Medical Equipment
China is eyeing this crisis as an opportunity and is taking advantage of COVID-19 not only to revive but boost its economy. As China successfully reduced the virus in the nation, it is now supplying all kinds of medical equipment and testing kits all across the world at monopolized prices which are double to triple the actual cost.
Recently, Spain purchased medical equipment worth 432 million euros from China fight COVID-19 epidemic. "Spain has signed a multi-million-euro contract with China to acquire medical supplies," said Spain Health Minister Salvador Illa.
Chinese medical wing has now introduced a compact kit through which preliminary tests of COVID-19 can be carried out with ease. The official agencies with the accreditation of the World Health Organisation (WHO) are selling the kits at a monopolized price of $7 to $15 per kit or per test. But, the actual cost of the market for that particular kit is less than $1.
Not only that, but mask production is also another essential money roller for China as in the first two months of the year 2020, a high incline of 8,950 new manufacturers started producing masks in the nation, according to business data platform Tianyancha.
Globally there are more than 500,000 people infected with COVID-19 epidemic and demand for protective masks is on the peak. People across the world are ready to pay a lot of money to purchase the masks or other medical equipment to save themselves from this deadly virus. A factory in China produces more than 70,000 masks a day which has costed very little as compared to selling prices.
So, the profit of a mask, testing kit or any other medical equipment is touching the skies. According to internal information, each factory in China has more than 200 additional orders in hand, worth over 14 million US dollars.
Taking over the industry
China is all set to use the crisis to advance China's economic condition. Now, many government agencies and top officials are openly talking about how China is taking advantage of being the first country to recover from COVID-19 because it was the first to contract with it. They emphasis on taking over the industries of the future.
China is intentionally planning to overproduce all kinds of products or goods to surge the international markets and expand its market share, while all other western companies are on their back foot due to COVID-19.
There is no doubt that some of China's efforts towards the world seem benign or even more helpful. Still, in the shadow of darkness, China is ramping up production of medical supplies, ingredients for pharmaceuticals and all other kinds of goods to monopolize the market, making its stronghold in the international market.
The mighty sea of coronavirus has turned the crisis into an opportunity for China as there is a significant incline in trust and the dependence of all the countries around the world including all kinds of sectors like 5G, Superfast Rail, Electric Vehicles, AI (Artificial Intelligence and internet.
Ironically, China was the first country to deal with COVID-19 and now its ahead of most of the countries in the world in terms of containment and recovery. Whereas, Chinese employees and workers are returning to the factories and all other first world nations are facing complete shut-in Economy due to COVID-19 crisis.
Some of the European countries are even unable to handle the spread of deadly impression of coronavirus as Italy approaches towards 9,000 deaths due to epidemic and Spain is second on the list with 4,365 deaths so far.
China is making efforts to manipulate the situation to unfairly take even more control of the industries of the future. The world needs to understand this and do not let this happen by dealing with the COVID-19 crisis without losing sight of the longer game.
Chinese medical wing has now introduced a compact kit through which preliminary tests of COVID-19 can be carried out with ease. The official agencies with the accreditation of the World Health Organisation (WHO) are selling the kits at a monopolized price of $7 to $15 per kit or per test. But, the actual cost of the market for that particular kit is less than $1.
Not only that, but mask production is also another essential money roller for China as in the first two months of the year 2020, a high incline of 8,950 new manufacturers started producing masks in the nation, according to business data platform Tianyancha.
Globally there are more than 500,000 people infected with COVID-19 epidemic and demand for protective masks is on the peak. People across the world are ready to pay a lot of money to purchase the masks or other medical equipment to save themselves from this deadly virus. A factory in China produces more than 70,000 masks a day which has costed very little as compared to selling prices.
So, the profit of a mask, testing kit or any other medical equipment is touching the skies. According to internal information, each factory in China has more than 200 additional orders in hand, worth over 14 million US dollars.
Taking over the industry
China is all set to use the crisis to advance China's economic condition. Now, many government agencies and top officials are openly talking about how China is taking advantage of being the first country to recover from COVID-19 because it was the first to contract with it. They emphasis on taking over the industries of the future.
China is intentionally planning to overproduce all kinds of products or goods to surge the international markets and expand its market share, while all other western companies are on their back foot due to COVID-19.
There is no doubt that some of China's efforts towards the world seem benign or even more helpful. Still, in the shadow of darkness, China is ramping up production of medical supplies, ingredients for pharmaceuticals and all other kinds of goods to monopolize the market, making its stronghold in the international market.
The mighty sea of coronavirus has turned the crisis into an opportunity for China as there is a significant incline in trust and the dependence of all the countries around the world including all kinds of sectors like 5G, Superfast Rail, Electric Vehicles, AI (Artificial Intelligence and internet.
Ironically, China was the first country to deal with COVID-19 and now its ahead of most of the countries in the world in terms of containment and recovery. Whereas, Chinese employees and workers are returning to the factories and all other first world nations are facing complete shut-in Economy due to COVID-19 crisis.
Some of the European countries are even unable to handle the spread of deadly impression of coronavirus as Italy approaches towards 9,000 deaths due to epidemic and Spain is second on the list with 4,365 deaths so far.
China is making efforts to manipulate the situation to unfairly take even more control of the industries of the future. The world needs to understand this and do not let this happen by dealing with the COVID-19 crisis without losing sight of the longer game.
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