Sixty percent of Americans don’t trust Trump’s plan to stop the spread of COVID-19. Only 37% agree with the president’s mixed message approach to flattening the COVID-19 spread curve. Mr. Trump lost valuable time when he decided not to react to the economic and social issues China went through. The coronavirus took down thousands of Chinese and ripped the country’s Gross Domestic Product growth to shreds.
The Chinese government claims GDP growth will recover in the second quarter, but several economists don’t think that’s possible due to a severe drop in manufacturing production, as well as broken supply chains, and a country-wide transportation debacle. First-quarter GDP growth in China could drop below 2% in March, China enjoyed 6.1% growth last year.
China’s manufacturing and consumer sectors are in the toilet, but the tech sector of the economy is still in relatively good shape. Huawei, China’s top tech company, continues to make the news loop for introducing new smartphones and getting countries to sign up for its 5G services. Mr. Trump wants to stop American telecom companies from using Huawei components, so he signed a law that restricts rural telecom companies from using federal funds to but Huawei components.
The president’s claim Huawei spies for the Chinese government fell on deaf ears in the UK and France. Both countries will use Huawei’s 5G technology to build parts of their nation’s 5G cellular service. Huawei also plans to build a 5G factory in France to service its European clients, according to CEO Ren Zhengfei.
The economy is still President Trump’s main concern. The president knows his reelection depends on a growing economy, and that’s not happening thanks to COVID-19. U.S. economic growth could drop into negative territory this month, but several economists still think the country will experience some economic growth. Mr. Trump decided to ask lawmakers for $1 trillion to help stimulate the economy. The Feds chipped in by cutting interest rates to zero and promising to dump $700 billion into capital markets to keep liquidity flowing in the right direction.
The White House talked to former Democratic candidate Andrew Yang about his proposal to send each American $1,000 to help make ends meet. Trump thought Yang’s idea could work during the coronavirus outbreak, so he sent Treasury Secretary Steve Mnuchin to the Senate to get that done. According to Mnuchin, Americans will get a $1,000 check from the government to ease some of the financial pain associated with the coronavirus pandemic in April.