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Coronavirus US
OpinionComment
Winston Mok
Winston Mok

Bumbling, wasteful US should learn from China’s coronavirus response

  • China has Covid-19 under control with draconian measures and tech-based monitoring while the US is struggling with uncoordinated and premature reopenings
  • The disease has exposed many institutional weaknesses in US society and economy, which, despite their strengths, are not structured to withstand pandemic shocks

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Hundreds of cars wait in line for a food bank distribution at the Big Butler Fairgrounds in Prospect, Pennsylvania, on April 28. The Greater Pittsburgh Community Food Bank expected more than 1,500 vehicles to come to receive two 11kg boxes of food each. Photo: AP
Winston Mok

Among the long queues for food banks in the United States were high-end cars. While some Americans suffered from hunger, some US farmers destroyed crops. Among the many closed restaurants across the US, some will close for good. 

Some people from other provinces stuck in Wuhan during the long lockdown survived on not much more than instant noodles and vegetables. Agricultural produce in China found multiple ways to consumers. Some restaurants conducted brisk businesses in takeaways and packaged processed food.

The contrast above may epitomise the greater resilience of China’s economy. China may be poorer and less developed but more adaptive. Chinese people can also endure great hardships.

China has largely brought Covid-19 under control with draconian measures, followed by tech-based monitoring programmes and high testing capacity. The US is still struggling with uncoordinated and premature reopenings. In contrast to crowded beaches and bars in the US, Chinese people are more careful on social distancing even during key holidays.

What are some underlying reasons the US’s economy is not as resilient against the Covid-19 shock? First is Americans’ low savings. Even someone with a six-figure salary driving a luxury vehicle may live hand to mouth, burdened with high household debts including mortgages, car loans, educational loans and credit card bills.

02:45

Global Covid-19 death toll hits 500,000 as coronavirus infections surge past 10 million

Global Covid-19 death toll hits 500,000 as coronavirus infections surge past 10 million
Two-thirds of Americans lack the recommended buffer of six weeks of take-home pay. Sixty per cent of Americans do not have funds to cover a US$1,000 emergency. More than half of US households do not have an emergency savings account. Hence, many of the 160 million stimulus cheques – essential lifelines for many families – might have run out.
Winston Mok
Winston Mok
Winston Mok, a private investor, was previously a private equity investor. He held senior regional positions with EMP Global and GE Capital, and was a McKinsey consultant and initiated its China practice. Winston obtained his bachelor and master degrees from MIT.
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