Andrei Movchan, CEO of the Movchans group told EXANTE’s Surfing the Curves channel that he expects a second lockdown in the US, but NOT due to Coronavirus.
U.S.-China Tensions Escalating
“We now know we can survive global lockdowns. As a result, we can see a war and we can see further lockdowns. Not because we see a virial threat, but because the US want to fight China,” Andrei Movchan CEO of the Movchans Group and global economist told International investment firm, EXANTE’s Surfing the Curves channel.
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Mr Movchan told EXANTE’s, Simona Stankovska that the Chinese economy may show signs of early recovery and the figures coming out of China may look positive, but the consumption of electricity in China doesn’t support the GDP growth “consistently and we don’t know why. Maybe these figures are fabricated so we can’t rely on them.”
However, exports have increased dramatically, and China is doing pretty well which would suggest that other economies around the world will follow suit and also start to recover.
The U.S. Could Be In For A Second Lockdown
Nevertheless, he adds that the US could be in for a second lockdown, but not due to the virus!
“We now know that the world can be locked down due to a virus or any reason. It’s been proven that it works. We have tried it for the first time and we know it’s possible. It’s possible to shut down hundreds of thousands of enterprises and we know that 23 per cent of the workforce in the US can claim jobless allowance. So the arms are untied. Therefore, if Mr Trump wants to fight China he can ban all imports from China.”
“It’ll lockdown many companies in America. But who cares? With coronavirus we’ve experienced that, we’ve survived that, we can rebuild the production to substitute Chinese production in Peru, Mexico, or in the US,” he adds.