Discover and read the best of Twitter Threads about #industrialchain
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#COVID19 will hold back instead of accelerating the shift of #industrialchain out of #China, by Robin Xing at Morgan Stanley: lnkd.in/g8EMRdn
Why?
Why?
1. Relocation means new #investment, but no one wants to invest amid a global #recession. The priority of multinationals in the near future will be to maintain cashflow and cut investment, not making new capital expenditures.
2. Many global leading companies feel the differences between China and other countries. China's management capabilities demonstrated in the process of resuming work and production further proved its #manufacturing advantages over other emerging markets.
Turn crisis into opportunity and deepen structural reform mp.weixin.qq.com/s/EJFRcpAav6xA…
The #epidemic indeed provided a rare opportunity for reflection, correction and reform of the deep contradictions in China's economic and social development.
It also further revealed the importance and vulnerability of #SMEs, according to Liu Shijin.
As #China's economy is in a critical period at present with downward growth rate and struggling to transform, and the #epidemic will bring pressure on #consumption, sluggish investment and worsen fiscal revenue.
Under internal and external factors, many small and medium-sized #manufacturing enterprises will go #bankrupt without steady control measures.
More importantly, the industrial ecology of some vulnerable manufacturing industries will likely be destroyed, which will lead to more negative effects in long term.
