Economic Power Comparison between United States and China in the Context of Covid-19 Pandemic: Based on Statistical Methods

• Main Author: Yang Yutong
• Format: Article
• Language: English
• Published: EDP Sciences 2021-01-01
• Series: E3S Web of Conferences
• Online Access: https://www.e3s-conferences.org/articles/e3sconf/pdf/2021/09/e3sconf_iaecst20_01163.pdf

Generally speaking, economic crises are caused by insufficient demand, while the economic crisis that may be caused by the Covid-19 epidemic started with insufficient supply. In the case of insufficient demand, countries often use a series of monetary policies to release liquidity, such as interest rate cuts, RRR cuts. However, the interest rate cut this time may not work well. This is because the interest rate cut can increase the liquidity of the market.While controlling the epidemic, we should promptly resume work and production, and produce a variety of commodities that meet consumer demand. During this period of time, the main strategy is not monetary policy. Instead, appropriate fiscal policies should be used to reduce the burden on enterprises so that they can survive this difficult time without dying before they start their careers. Only companies that can survive the epidemic are good companies that have combat effectiveness and can continue to conquer the market after the epidemic is over.Therefore, in the face of the Covid-19 epidemic, the competition between China and the United States should not be a zero-sum game because the United States is the final consumer of a large number of products produced by China, and the United States is still the world’s leader. If the US economy declines, it will definitely affect global economic development. When necessary, we also need to support the production of high-end consumer products in the United States and allocate a portion of the production capacity for them. Only when the two sides have healthy competition can the industrial chain of both sides be upgraded together.