Days after a sharp increase in COVID-19 cases in the US, China’s top leaders are slated for a convention in Beijing to arrange plans to maximize the country’s effective coronavirus response and thriving economic power.
“We saw the Chinese economy is starting to grow again,” Glenn Hutchins, chairman of North Island said in a Yahoo Finance interview.
The billionaire fintech investor cautioned that the American government’s lack of coordination and mishandling of the global crisis has pushed its economy into a recession and halted its recovery. This has left the country “in a very bad place” compared to China.
China announced last week that its economy resurged at a 4.9% rate in the July-September quarter.
Meanwhile, the economy of the United States fell 5.0% in the January-March quarter and 31.4% in the April-June quarter.
According to a Bloomberg report, economists anticipate a 30% increase for the July-September quarter. However, Hutchins believe that a solid third quarter will not compensate for the losses suffered early this year caused by lockdowns, lay-offs, and closure of various industries.
“The depression is over and now the recession is setting in,” he says.
He encouraged Congress to submit an “absolutely vital” stimulus that would resolve the unemployment growth caused by the coronavirus pandemic.
A stimulus deal remained distant on Sunday when Democratic House Speaker Nancy Pelosi and White House Chief of Staff Mark Meadows highlighted each other’s inability to reach an agreement.
Hutchins, who once served as economic and health policy advisor to former President Bill Clinton, argued that the current condition of the country requires a more stable policy response from Congress.
“We played politics with the reopening. We should not play politics with the next relief package,” Hutchins said. “It needs to go back to the very basics about giving people support for unemployment insurance, rent relief, help for the states and the cities who will continue to suffer.”