China’s export machine was supposed to stall. President Trump had imposed broad tariffs on Chinese goods. Countries pushed companies to shift production from China. The pandemic had crippled China’s factories back in January. Instead, China’s factories began an export blitz that is still gaining steam. Exports soared in July to their second-highest level ever, nearly matching the record-setting Christmas rush last December.
Its resilience lies not only in the country’s low-cost, skilled labor and efficient infrastructure but also in a state-controlled banking system that has been offering small and large businesses extra loans to cope with the pandemic.
Families all over the world are sprucing up the homes they are now stuck inside. They have been buying everything from computer screens and stereo systems to power tools and home saunas — many of which are made in China.
“Even with the 25 percent tariff, the manufacturers in China still have lower costs,” said Rachel Wang, the company’s export manager.
The pandemic has shielded China at least temporarily from attempts to move factories to other countries. Many multinationals have cut back on investment as global demand has slowed, and so have little money to set up new operations elsewhere. source