Trade? Good luck trying to sell more to Southeast asia, a dozen nations each with a different level of market access barriers, language barriers and trade policies. And their economical stability is at the mercy of US interest rate, which can cause a currency run at a moment notice(Vietnam, Indonesia, Innsia. Beside Chinese companies are going large in there already, ranging from automobiles, electronic, agricultural. In return, China is already by far their largest buyer of goods, including important goods like crude palm oil and coals, which is crucial for Malaysia and Indonesia, which EU is going to stun soon.
Sourcing? A fantasy to think Vietnam(or India) is comparable to China when it comes to production of products. Already I have news of fabric companies moving out of Vietnam to Cambodia due to soaring land prices, which is not justified by any improvement in infrastructures. And even the first wave of Chinese facs move out to Vietnam is already returning back due to labour shortage and surging min wage.
I agree.
It's also interesting how we now see the US seeing widespread protests and riots.
In retrospect, this was the obvious result of:
1. a COVID-19 lockdown
2. the subsequent increase in unemployment to 30% (Great Depression levels)
3. the pre-existing grievances of the Black minority.
4. how the lockdown really hit the Black minority from an economic and death rate perspective
5. the lack of universal healthcare
6. the paucity of social security net
7. the basic anti-government and anti-authority ethos that the US is built on.
Given the economic situation is still going to get far worse in the USA, it does look like the US is going to be wracked with protests, particularly since we're now entering summer which has the peculiar distinction of being the time when major revolutions/protests occur throughout history.
I theorise that it's a combination the free time plus the sweltering heat that causes people to protest
So I also noticed NBC is now repeating the following growth estimates for 2020
a) China - 1% growth
b) US - a 6% contraction
Given the likelihood of continued riots and protests in the USA this year, I'm thinking that the economic contraction is going to be even worse than currently forecast.
So in summary:
1. the Chinese economy will come out stronger than the US economy, both on a relative AND absolute basis.
2. the economic and political climate in the USA is going to be very angry