Who Benefits From the Challenges of the Chinese Economy and the Role of Georgia?

Abstract

During the coronavirus pandemic, international companies operating in China intensified discussions about relocating their businesses to another country. This has caused by the closed borders and virtually stagnant economy. At the same time, companies operating in different countries have clearly seen how dependent they are on Chinese production and have actively started working to diversify their supply chains. However, the challenges for companies operating in China did not start only after the pandemic and it has a deeper basis. The aim of the paper is to review the main factors that pushed international businesses to leave one of the most attractive markets for manufacturing. In addition, the paper pays an attention to the efforts, opportunities and prospects of those countries that are trying to appear as an “alternative China” to the world. Finally, the article analyzes Georgia’s chances in global trade and manufacturing industry. The economies of the countries are closely linked to each other and any decision has a wider economic impact. To evaluate current circumstances and make accurate predictions, it is necessary to see them in a broader context.