Stringent Lockdowns lead to fall in trade and investments in China

Stringent Lockdowns lead to fall in trade and investments in China

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Stringent Lockdowns lead to fall in trade and investments in China

Due to the strict lockdown policy in China, trade and investments in the country have fallen by steep margins. The Chinese government has begun looking towards under-explored geographies like West Asia North Africa (WANA) region for increasing its trade.

The major causes for the slump in trade and investments in China are Zero-Covid lockdowns and supply chain problems. Numerous interruptions brought on by the lockdowns had far-reaching effects. Production days have been lost by factories. There have also been labour shortages and alterations to supply and logistical systems.

China’s recently has begun its outreach to West Asia, North Africa (WANA) nations for establishing economic and investment links with these nations. Moreover even the WANA countries are also eager to work with China on sustainable development, space exploration, and infrastructure development.

Last year there were a number of high-profile meetings and agreements with many of WANA nations, including the trip to Beijing by the foreign ministers of Bahrain, Kuwait, Oman, and Saudi Arabia.

Now Morocco has grown to be an important location for Chinese investments in Africa, hosting more than 80 projects around the country. The BRI cooperation agreement was ratified by this country as the first from North Africa. Morocco also approved the “Joint Belt and Road Implementation Plan” in January 2022.

Another indication of increased Chinese activity in the area is the increase in interest in Chinese language study. By negotiating strategic cooperation agreements with Algeria, Egypt, Iran, Saudi Arabia, and the UAE, China has also increased its engagement with a number of these nations.

Beijing is attempting to enhance bilateral air traffic in order to strengthen people-to-people ties with the Kingdom. Together with a Saudi company named Abdulali Al Ajmi Co., China Railway 18th Bureau Group Co. Ltd. is developing a tunnel project that involves highways, tunnels, a telecom network, an energy distribution network, and a water distribution network.

Moreover, Chinese company Huawei also has a number of projects going on in Kuwait, including 5G, cloud services, and ICT training for young Kuwaitis.

Similarly to this, the Qatari Armed Forces are receiving supplies from M/s China Vanguard Industry Corporation (CVIC), a Chinese state-owned military equipment trading company. Included in the supply are missiles, support gear, replacement components, and technical training.