A New Political Firestorm: The Coronavirus Origin

Insights and Market Perspectives

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May 27, 2021

A New Political Firestorm: The Coronavirus Origin
May 27, 2021
RARELY IN RECENT MEMORY has opinion shifted so quickly - in Congress and the scientific community - than the sudden shift this week on the origin of the
deadly coronavirus. It could have escaped from the Wuhan Institute of Virology.

THIS CONTROVERSY is in the spotlight, generating more publicity than the plodding infrastructure negotiations and the brazen hijacking of an airplane by Belarus.

AFTER SEEMINGLY SHUTTING DOWN a State Department investigation of the coronavirus origin, the Biden Administration was rocked by a report last weekend by the Wall Street Journal that claimed three Wuhan lab workers were hospitalized in late 2019.

AT THE LEAST, the origin of the virus is now unclear - it's not certain that it
originated from infected animals or bats. Adding to this new thinking is China's
lack of transparency on any further investigations.

EVERYTHING IS POLITICAL in this city, so the reaction from conservatives - especially Trump supporters - was immediate: a sense of vindication. Proponents of the lab leak scenario have been mocked as conspiracy theorists for the past year by the scientific establishment, including Dr. Anthony Fauci.

TRUMP CROWED YESTERDAY, 'To me, it was obvious from the beginning,' that the virus escaped from the Wuhan lab, but 'I was badly criticized, as usual.' His
handling of the virus, of course, is still extremely controversial.

COVID-19 HAS KILLED 3.5 MILLION PEOPLE worldwide, so there's a natural desire to assign blame and, more importantly, take action that could prevent this from ever happening again.

THE POSSIBILITY OF A LAB ACCIDENT certainly has gotten President Biden's attention; sensing a political firestorm, he pivoted yesterday, ordering U.S. intelligence authorities to re-visit the issue. At least one intelligence agency thinks the virus could have come from a lab accident, Biden said.

EVERYONE IN WASHINGTON SEEMINGLY AGREES on one point: the Chinese government has not been transparent on the virus, and has stonewalled the World Health Organization's probe. The anti-China mood in Washington has intensified.

ANTI-CHINA LEGISLATION is moving in the Senate and could pass within weeks.
There's bipartisan support for this bill, which would aid U.S. manufacturers competing with China. If anything, the measure may be toughened to impose new sanctions on Beijing - as both political parties scramble to blame China for the pandemic.

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