Restart in China Construction Blossoms Economic Prospects

In the times of anguish, people looked for a ray of hope that would show that it is not the world’s apocalypse. Amidst the pandemic, the nations while tending to one’s wounds seemed to trace China’s infection movements. In the wake of such a situation, the other countries resemble the storm ridden vessels that longingly eye the safety of the harbour where the initial sailors have set their foot.

China Back into Action

China being the cradle to the infection was the earliest to struggle against the pandemic, and it was the first to emerge from COVID-19 emergency. Presently, all the COVID-19 patients have been discharged in Wuhan, which was the epicentre for the pandemic. China, in terms of COVID-19 infection, has preceded the rest of the world. Thus, its gradual recovery is fostering redemption goals to the world.

The seizure of a large number of activities classified ‘non-essentials’ had stagnated the growth in China for the epidemic duration. However, the country is back into action seeking revival of the economic and infrastructural operations. Meanwhile, the Australasian region, including Australia and New Zealand, is slowly moving towards the eased restrictions that sends flutters of hope and rekindles the economic aspirations. Amidst the time of recovery, the notable infrastructural push in mainland China is the harbinger of the normalcy in the months to come.

With this backdrop, let us look at the restart of the various construction activities in China which are giving signs of economic reopening.

Transportation Infrastructure development

The transportation-related infrastructural developments lie at the heart of the construction endeavours undertaken to post the containment of COVID-19. The country has resumed the construction of varying routes and facilities that would ensure the economic prosperity in the years ahead. The metro at Wuhan metro Line 5, Guangzhou Subway Line 18, Chengdu City Metro Line 17 and 18 have resumed the construction operations. It would mean the reemployment of the workforce, sending positive stimulus to the economic prospects.

China’s Belt and Road Initiative, which incorporates the renowned Silk Route continue to evolve at a rapid pace. Giving a strong nudge to its BRI initiatives after the containment of the virus, China has resumed the construction activities at its China-Russia Highway Bridge. Easy transportation access between the countries would boost trade activities in the coming years. Meanwhile, in Guizhou, the construction of the Dunyun-Anshun expressway has taken a full swing.

Digital Infrastructure Developments

The steady shift towards the digital platforms to ensure that the operations keep ongoing has demonstrated the crucial role that the digital infrastructure can play in the coming years. Propelled by the increasing adoption of the innovative solutions in every walks of life, the companies, along with the government, have radically shifted to improve the digital infrastructure.

Centred at providing a push to the communication services that played a significant role amidst the lockdown, China Construction Eighth Engineering Division Corporation Limited has resumed the construction of the Shanghai-based International Data centre. China is propelling the growth of 5G centres and data centres at a very hasty pace, which, however, can have negative environmental implications as the data centres consume a vast amount of energy.

The diversified usage of the Big data in the digital age is considered as pivotal to building a thriving economic regime. Meanwhile, the dominance of the digitalised era was strongly felt amidst the restrictions. Driven by the medical crisis and the power of technological evolutions, China has started the infrastructural development of National Healthcare Big Data North China Storage Centre.

Chinese e-commerce giant, Alibaba Group Holdings Limited has decided the investment of 28 Billion USD for developing the cloud infrastructure. The company investment is directed at building the data centres, thereby aiding to support its existing network while also focussing in the area of Artificial Intelligence. Alibaba has started the construction of its Cloud Global Headquarter in Hangzhou that would boost the cloud computing infrastructure for the company.

China is undertaking a range of other construction activities towards enhancing living standards through the availability of the necessary amenities. As per the Ministry of Water Resources, China has resumed the construction of major water conservancy projects. Similarly, the housing projects have also started taking the full swing.

Effects on the Australian Economy

The rebound of the operations in the Chinese landscape is expected to boost the Australian economy. China is the major importer of raw materials from Australia. The infrastructural development programs fostering China’s growth have increased the utilisation of steel. The steel production in China is heavily reliant on the iron ore derived from the Australian mines. Post the outbreak in China, the metal and mining industry of Australia is in trouble with the imbalance in the supply and demand. The increased utilisation of steel would alleviate the Australian economy.

While Australia is planning to open the borders for New Zealand, the country is reluctant to open the borders for other countries in the face of the ongoing COVID-19 situation. The real impact would be much more apparent following the restoration of the trade between the countries.

ALSO READ: 5 Ways Australia is Gearing up for Ease in Lockdown Restrictions

Bottomline

China appears to have considerably leapt out of the COVID-19 troubles and with full-force is striving to kick-start the activities. The construction, which was significantly affected during the pandemic phase in the country has taken its full swing and would primarily assist in boosting the economic scenario of the country. The business operations and infrastructural developments in China are also infusing positive hope among the other players. Meanwhile, Australia can keep its fingers crossed for trade recommencement to capitalise on the new growth trends.