The Coronavirus Can’t Kill Globalization
Even during a trade war, you can’t disentangle the American and Chinese economies
The increasing need for medical supplies such as masks, ventilators, and pharmaceuticals has overwhelmed many developed countries. Besides being slow to respond, one of the main reasons for the lack of medical supplies is that we live in a world driven by international supply chains and just-in-time delivery models that deliver goods as close as possible to when a buyer wants them. About 80% of America’s active pharmaceutical ingredients are produced abroad, leaving the United States vulnerable during a crisis that restricts trade flows and heightens existing trade tensions. As a result, the health care sector is under-equipped, firms struggle to import essential materials, the economy is suffering, and consumers are experiencing a delay in the availability of their goods.
Global tensions rising
Naturally, politicians and economists have started to reassess the risks of continuing with a globalized system after the pandemic. In the United States, policymakers have raised concerns about the dependence on other countries for crucial medical and technological supplies. Especially as tensions with China, the second largest exporter to the United States, are growing, the idea that…
