Outcomes of the New Pandemic (Part-1)

July 11, 2020

The global pandemic has scribbled upon the development books of around 188 nations in the present situation. It has just put a halt even to the developed nations and has taken us all to the juncture where everything has to restart slowly. But all the nations are reviving with great enthusiasm among its citizens. This category includes China, USA, India, France, Italy, Russia, Canada, etc. There are several outcomes of this disease and these are the key point of this article.

Firstly, the trade relations between the nations are badly shook by the huge financial and economical fluxes this pandemic has caused. All the countries are trying to cope up from this disease by bringing their economy back on track, but the trade relations between some countries are quite disturbing for them.

The relations between the United States and China has worsened time and again from the starting of imposing huge tariff rates during the China-US Trade War in 2018. The US says that China has invented the “Chinese Virus” for decelerating the economy of other countries, especially America’s. The United States has thus implemented a strict and conducive approach to take revenge from China. It has imposed visa restrictions on the Chinese journalists in their country, shortening their time period to 90 days. It has also extended for one more year ban on U.S. companies to use the telecom equipment made by Huawei and ZTE which are “positing national security risks”.
The future trade relations between the other countries stand on a bifurcating point- whether they remain in a profitable situation or get burdened with a loss according to their dependence on trade relations with both countries.

Source: Reserve Bank Of India

On reaching our national position in this matter, we find that our country also stands in the way of China. The international border dispute with China in the past few days has turned the US on the side of India. India, itself has taken the steps to defenestrate China from every house and every mind. India has implemented some effective measures to reduce import dependency on China.

Till now more than 14% of India’s import was from China, but from now on that percentage is going to decline. We can see clearly that the imports from China have declined of a sudden from 429.55 billion INR to 214.22 billion INR in a span of three months which is the lowest in the history of 20 years. The increasing attacks of China through technology have resulted in the banning of 59 Chinese apps. And this has caused a huge loss to China’s thriving schadenfreude and economy.

Source: The Hindu

Secondly, under the weight of the new crown pandemic, many giant brands and government-operated sectors are facing a crisis of failure. Five months of pandemic created a lot of debt and tens of thousands of companies went bankrupt. This could simply be perceived from the following pandemic facts. Zara owner announced the closing of 1,200 stores worldwide. Starbucks has announced the closing of its 400 outlets and half of its outlets in China. Nike was forced to close nearly all its stores for 2 months and suffered a loss of $790 million. Victoria’s Secret, Hertz, Aldo Group, Macy’s, and more have been declared bankrupt.
The travel restrictions have resulted in a huge loss, paralyzing the hospitality sector, including India also. The hospitality and tourism sector accounts for 12.75% of employment in India. But the tourism industry is staring at a potential job loss of around 38 million which is around 70% of the total workforce in India.