As countries start to reopen their businesses and factories, China and Japan specifically had 2 drastic increases in their PMI (Purchasing Managers Index). China’s PMI rose from 51.0% in August to 51.5% in September. As the global pandemic slowed down everyone’s manufacturing factories the global economy took a big hit, but with everyone taking health and safety precautions, countries are reopening their businesses in hopes of getting trade and the global economy flowing again. In Japan, for the 3rd straight month, the factory output rose 1.7% with the boost of production of automobiles, iron, and other ferrous-metals. While these numbers may be a good sign to some people, China’s economy which grew 3.2% in the 2nd quarter is set to expand only 2.2% this year. That growth is the weakest in the country’s economy in almost 30 years. With the United States election approaching quickly, growing tensions between China and the USA are escalating because of trade, technology, and other issues. China analysts are predicting that the global economy and trade could potentially take another dip.
With the United States, China, and Japan all being the largest manufacturing countries in the world, growing tensions between the countries will not help lead the world out of this recession. As global leaders, they must set their political, ethnic, and religious beliefs aside and focus on the bigger picture of establishing a steady and strong economy to prevent another economic crisis from happening again.
With each country trying to be the global superpower, that comes with the necessity of needing a healthy economy which creates jobs since countries are trying to get a good GDP and increase the amount of products being exported out of their country. With China accounting for about 28% of the world’s manufacturing output with the USA following them. It is prevalent that we need to keep taking the correct Covid-19 precautions to prevent another slow down in the economy and manufacturing. With the promising signs of an increasingly steady economy, it gives people hope that this global pandemic is coming to a close.