ANL 30.68 Increased By ▲ 1.83 (6.34%)
ASC 14.94 Decreased By ▼ -0.21 (-1.39%)
ASL 23.90 Decreased By ▼ -0.25 (-1.04%)
AVN 92.00 Decreased By ▼ -5.95 (-6.07%)
BOP 9.14 Decreased By ▼ -0.16 (-1.72%)
BYCO 10.25 Decreased By ▼ -0.10 (-0.97%)
DGKC 135.60 Increased By ▲ 0.10 (0.07%)
EPCL 50.00 Increased By ▲ 0.02 (0.04%)
FCCL 24.62 Decreased By ▼ -0.54 (-2.15%)
FFBL 24.25 Decreased By ▼ -0.97 (-3.85%)
FFL 15.60 Decreased By ▼ -0.44 (-2.74%)
HASCOL 10.74 Decreased By ▼ -0.33 (-2.98%)
HUBC 85.20 Increased By ▲ 0.20 (0.24%)
HUMNL 7.35 Decreased By ▼ -0.35 (-4.55%)
JSCL 24.85 Decreased By ▼ -0.90 (-3.5%)
KAPCO 37.85 Increased By ▲ 0.40 (1.07%)
KEL 4.15 Decreased By ▼ -0.02 (-0.48%)
LOTCHEM 14.78 Decreased By ▼ -0.35 (-2.31%)
MLCF 46.60 Decreased By ▼ -0.58 (-1.23%)
PAEL 38.25 Decreased By ▼ -1.15 (-2.92%)
PIBTL 11.80 Decreased By ▼ -0.24 (-1.99%)
POWER 10.50 Decreased By ▼ -0.15 (-1.41%)
PPL 90.55 Decreased By ▼ -0.45 (-0.49%)
PRL 26.10 Decreased By ▼ -0.59 (-2.21%)
PTC 8.95 Decreased By ▼ -0.10 (-1.1%)
SILK 1.40 Decreased By ▼ -0.05 (-3.45%)
SNGP 38.10 Decreased By ▼ -0.65 (-1.68%)
TRG 141.10 Decreased By ▼ -4.60 (-3.16%)
UNITY 31.50 Decreased By ▼ -1.40 (-4.26%)
WTL 1.57 Decreased By ▼ -0.04 (-2.48%)
BR100 4,936 Decreased By ▼ -22.94 (-0.46%)
BR30 25,403 Decreased By ▼ -330.65 (-1.28%)
KSE100 45,865 Decreased By ▼ -100.6 (-0.22%)
KSE30 19,173 Decreased By ▼ -26.07 (-0.14%)
Business & Finance

Aiming to restore reputation, China may struggle to win global trust on vaccine: EIU

  • EIU stated that given the logistical challenges of vaccine distribution, China will be at risk of overpromising and under-delivering.
06 Jan 2021

Despite being the frontrunner in the COVI-19 vaccine race, China will struggle to win the trust among fellow advanced countries, stated the Economic Intelligence Unit (EIU) in its latest report titled Asia in 2021.

The report, while delving on China stated that a strong headline recovery in GDP growth in 2021 will obscure some of the challenges faced by China’s economy, even as it has successfully brought Covid-19 under control.

Sequential economic momentum will, in fact, be weak. This will reflect the lingering impact of the pandemic on jobs and incomes; a tightening bias in monetary and fiscal policy; and the effects of geopolitical strains on investor confidence, it said.

“We expect China to be among the first countries to begin large-scale distribution of a coronavirus (Covid-19) vaccine in 2021. Besides the benefits for its own population, China will aim to use the development of a vaccine to restore its international reputation, which has been battered by its status as the origin of Covid-19. In particular, China will hope global distribution of its vaccine can shore up its ties in the developing world, where it and Western countries, led by the US, will increasingly vie for influence,” said the report.

EIU stated that given the logistical challenges of vaccine distribution, China will be at risk of overpromising and under delivering. It could also struggle to build global trust in its vaccine, given a mixed domestic safety record.

The report also anticipated a property price slump looming in China’s third- and fourth tier cities. It said that a tightening monetary policy and a new risk-rating system for property firms will cause tremors in the property market in 2021.

“As the Chinese and world economies normalise, monetary policy in China will have a tightening bias this year. Rising market interest rates will increase house-financing costs for investors and dampen market speculation.”

“Furthermore, pressure on major property developers to cap their debt levels has grown, following the issuance of new risk regulations in August 2020. As evidenced by strains on Evergrande, China’s largest developer, this will lead to discounted selling of housing stock or a retreat from land purchasing to avoid cash-flow issues,” it said.