Research on the Influence of COVID-19 on the Fluctuation of China Household Electrical Appliances’ Index in the Context of Economic Globalization

Abstract

In order to deal effectively with the impact of the COVID-19 on China’s domestic appliance industry in the context of economic globalization, by analyzing the upstream copper futures index（CFI）and the downstream household appliance Futures Price Index （HAFPI）from January, 2020 to October 2021, the degree of response to the COVID-19, to consider how to steadily promote the high quality development of China’s domestic appliance industry. A new COVID-19 public opinion index（POI）was constructed, which was used as the proxy variable of the COVID-19 situation, and the VAR model was established based on the CFI and HAFPI. These COVID-19 in the home appliances industry chain at different points in the product price refers to the large fluctuations, each link price fluctuations are different. The price fluctuation of the upstream raw material link is the biggest, and the price index of the downstream consumption environment fluctuates little. The general impact of COVID-19 on the production link of China’s household appliances industry is great, but the impact on the consumption link is not obvious, mainly because the production enterprises bear the increase of the upstream raw material cost, which leads to the decrease of their profits. In view of the problems existing in each link of household electrical appliances industry chain under the epidemic situation, this paper puts forward some suggestions on strengthening the prevention and control of epidemic disease, industry support, Futures lock-in of raw material prices and the construction of Logistics System.