IS COVID-19 FORCING DEGLOBALIZATION? | WHAT REALLY HAPPENED

IS COVID-19 FORCING DEGLOBALIZATION?

One of the more worrying consequences of the coronavirus is that it looks likely to become a catalyst for deglobalisation.

At the centre of this will be the decoupling of the Chinese economy with developed economies and the US in particular. The world’s three largest free economies – the European Union, the United States and Japan – are all drawing up separate plans to lure their companies out of China.

European Union trade commissioner Phil Hogan has called on companies to consider moving away from China; US President Donald Trump’s top economic adviser Larry Kudlow has said the government should pay the costs of American firms moving manufacturing back from China onto US soil; and Tokyo has unveiled a US$2.2 billion fund to tempt Japanese manufacturers back to Japan or even to Southeast Asia.

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