During the COVID-19 pandemic, the world has become completely dependent on personal protective equipment, or ‘PPE’. Most of these essential gear, from gowns, masks to goggles, are produced in China. Experts from Western countries say that this foreign dependence may become problematic.
Alarmed at China’s stranglehold over PPE supplies, countries around the world have started to set up their own factories to cope with the ongoing pandemic and possible outbreaks of the future.
When the outbreak eventually subsides, factories in the West may struggle to survive. China has already laid the groundwork to dominate the PPE market for years to come.
As a courtesy from the Chinese government, factory owners get cheap land and subsidies & loans are plentiful. Chinese hospitals are often told to purchase locally, giving China’s mass suppliers a captive and vast market.
Once a vaccine becomes available, demand will likely drop. Factories will cease operations however Chinese companies are likely to have the lowest costs by far and be best positioned for the next global outbreak.
The Chinese have been very successful in constructing a global PPE dominance with supply-chain command and control. China’s strong grip on the world market is a testament to its drive to dominate important cogs in the global industrial machine.