China Gets Triple Hit by COVID-19

This chapter argues that China has been triple hit by the COVID-19 pandemic as it has caused a major trade shock, an investment shock and a business environment shock. To date, the globalized economies are interconnected by international trade, which makes trade an important vehicle for international contagion. Globalization and economic shocks are underpinned by a variety of forces affecting economic and societal changes creating a domino effect in global production networks. The impact of the COVID-19 pandemic on China’s overseas investment is manifold. Chinese businesses are exposed to the changing international business environment as perceptions on China’s roles are shifting. The COVID-19 pandemic is changing the way business is conducted worldwide. As a result, Chinese companies are now confronted with a new international business environment that is moving away from globalization that had been creating opportunities for firms from emerging economies to grow their presence in global markets.