ICS Analysis

What Does the Pandemic of Covid-19 Tell Us About Economic Security as a Factor of Competitiveness? An Exercise on China

The purpose of this article is to analyze the long-term consequences of the Covid-19 on China’s economic security and national competitiveness, less on China’s GDP trajectory. While peacefulness has a small influence on global competitiveness, an increase of military threat, and growth of military expenditures stimulate a steady inflow of direct foreign investments. Cybersecurity raises competitiveness and the inflow of direct foreign investments alike. Overall, the Chinese economy will feel severe consequences of the new coronavirus. The number of hospital beds and healthcare expenditures are significant factors of global competitiveness and attraction of direct foreign investments. However, the reasons for its emergence, as well as its effects, are ambiguous. This analysis supplies an entirely new view of economic about security policy. China could gain economic advantages from the crisis. As viruses could have disruptive effects for the national economy and national security, fighting viruses will become a new direction for national security and nations’ crisis management.


Bruno S Sergi

Professor, Harvard University, USA

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