According to foreign media on December 27th, whilst Communist China has been the factory of the world for the past three decades, the global pandemic has completely upset its dominance in the world supply chain.
Since Communist China formally joined the WTO in December 2001, it ushered in an era of globalization and supply chain integration. In the course of nearly 30 years, Communist China has acquired 31, 179, and 609 major, medium and minor industrial categories respectively. It became a manufacturing powerhouse with the most complete industrial categories and the most complete industrial system in the world. Around 2018, Communist China has still not fulfilled its commitments as a member of the WTO, resulting in President Trump launching the US-China trade war. With each tariff sanction imposed, the image of the manufacturing powerhouse began to disintegrate.
That has prompted investors to reassess the geopolitical risks of companies. Some companies began to leave Communist China. The global pandemic that broke out in 2020 and the harsh zero-covid policy implemented by Communist China in the past three years have made people realize the importance of not relying on one country to meet all manufacturing needs.