China’s Growing Power in the Middle of a Pandemic. Should the United States Be Concerned?

Abstract: This video explores China’s position as the factory floor for the world in the
age of a global pandemic. China is responsible for the production of much of the world’s
supply of protective equipment used by heath care workers. As such, it is in the unique
position of controlling the supply of goods that are in hot demand the world over, and
goods that are quite literally a matter of life or death. Concerns have been raised that
China could use its position to reward its friends and punish its enemies. While the surge
in demand from the United States for protective equipment has been important for
China’s economy, offsetting lower exports of goods targeted in the ongoing U.S.-China
trade dispute, the United States remains in the vulnerable position, without a domestic
source of PPE at the height of the pandemic. Indeed, the situation has prompted calls to
bring production of products considered necessary for national security back to the
United States.

Notes: For the past 20 years, China has been honing its position as the factory floor to
the world. For many consumers, China’s role has meant lower prices and greater choice.
For many companies, China’s position has meant higher profits and greater market share.
For many governments, China’s increasing dominance has been a growing cause for
concern as leaders worry that the country could have too much power in the global
economy. Today, whilst in the midst of a global pandemic, those fears may be coming
true. China supplies much of the world’s supply of protective surgical gowns, goggles,
and face masks, the essential equipment used by healthcare workers to protect against the
spread of infection.

Discussion Questions:

1. Reflect on the factors of production and China’s role as the world’s factory floor. How
   did China achieve this position? What does it mean for other countries like the United
   States?
2. China has made it a policy goal to be self-sufficient in key industries by 2025. While
   the country will almost certainly not achieve autarky, its move to reduce its dependence
   on other countries could have significant implications for its trading partners and for the
   global economy in general. Why do you think China has set this goal? Is it reasonable to
   expect the country to be successful in achieving it? How might China’s policy impact
   other countries like the United States?
3. Does China effectively have market power in PPE in that it can essentially control
   global distribution in the midst of a pandemic? Do you agree with TingLong Dai’s
   assertion that the United States should be producing goods important to national security
   like PPE domestically rather than importing them from countries like China? What are
   the benefits of a policy shift like this? Do you see any drawbacks?

Sources: PBS News Hour: China dominates the pandemic PPE market. What does that mean for U.S. as virus surges?, Reuters: U.S. appeals to China to revise export rules on coronavirus medical gear, Photo by JC Gellidon on Unsplash