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“The move to hold China accountable has begun,” he said. “It is gathering steam. This will inevitably sour and change the U.S.-China relationship.”
President Trump, among others, has accused China of lying about coronavirus origins, as well as covering up its own responsibility.
“And by its initial delay, spreading the virus around the world,” Varney said.
Varney said the first “casualty” is the World Health Organization (WHO).
"President Trump is cutting its funding. America gave the WHO $453 million in 2019. Mr. Trump says the virus might’ve been contained in China, if the WHO had acted more quickly and honestly," Varney said.
The coronavirus has also brought up the issue of China’s command of vital American supplies, Varney noted.
It has prompted Sen. Tom Cotton, R-Ark., and Sen. Mike Gallagher, R-Wis., to introduce the Protecting our Pharmaceutical Supply Chain from China Act, which aims to stop the purchase of drugs or active pharmaceutical ingredients from China by 2022.
“In the pharma business, China is done!” Varney said.
Varney noted Sen. Marsha Blackburn, R-Tenn., has suggested we “do something” about repaying the $1 trillion worth of debt that we owe China.
“Not sure exactly what that means but any interruption of America’s debt obligations would be dramatic indeed!” Varney said.
He also pointed to the former CEO of Toys "R" Us Gerald Storch, who has said “it would be absolute management malpractice” to be too reliant on China.
"The supply chain has already started to move away from China. And that is a major shift between the two largest economies in the world," Varney said. “By holding China accountable, America is exercising its economic clout. Perhaps tipping the balance towards more manufacturing and more jobs in America. It is the virus, unknown just a few months ago, which has changed forever the U.S.-China relationship.”