China started reopening after the coronavirus-related restrictions, but it could still take at least till the second half of the year to fully rebound, John Quelch, dean of the University of Miami Business School, told Boom Bust.
“Although 91 percent of companies and businesses reopened, only 40 percent roughly are operating at full capacity,” the professor said. He added that consumers in China have been left without sufficient funds to spur the economy.
“So I think that predictions about a rapid bounce-back are probably a little bit overdone.”
The economic fallout from the pandemic has not stopped the US from attacking China, including tariff threats and pushing companies to remove their production from the country. However, this might not be an easy task, especially when it comes to middle-range products, which are set to become the most in demand amid the crisis. China championed its position in the segment as the ‘factory to the world’, Quelch noted, adding that the crisis has made people both in the US and Europe poorer and they would need an experienced low-cost manufacturer.
For more stories on economy & finance visit RT’s business section
