COVID-19, trade war: Manufacturing shift to hit China, but will India gain?
The sudden rise in global coronavirus cases (COVID-19) over the past few weeks have not only shadowed global financial markets but has hampered the economic activity of major countries, particularly the virus in the midst of trade with China before the spread of coronavirus.
In this case, most analysts have revised down their global growth estimates as measured by gross domestic product (GDP). Many companies are now trying to expand their production base from China, they said.
UBS’s latest report indicates that most respondents/companies want to diversify from China and that the country’s product change is more structured and long-term. The results of the sixth U.S. CFO survey from UBS’s Evidence Lab indicate that 76 percent of respondents want to change supply chains in response to protectionist policies such as trade tariffs.
In the last two surveys, the figure was below 74 percent and 76 percent, but 66 percent said they were switching manufacturing facilities. According to the UBS report, Guttam Chao Charya, Head of Indian Research Department, Deepojal Saha and Tanvi Gupta Jain.
“During this long-term structural shift from China, India paid little attention to the importance of companies to rebuild the product, and Asian countries benefited. As far as India is concerned, these sectors are divided into manufacturing and service sectors.”
From 14 percent of the last two surveys, 10 percent think India is a new hike. Meanwhile, Asian countries have risen from 11% in the last survey to 15% in this survey. Those who want to invest in India have seen a decline in production, ”the UBS report said.