Economy

In the fight against the Covid-19 pandemic, various countries have extended support to nations in need, including those in Southeast Asia. There has been talk about possible shifts in the international balance of power. In terms of funding provisions to Southeast Asian countries at least, the pandemic does not seem to have made big dents to long-established patterns. The more established multilateral development banks — the World Bank and the Asian Development Bank — are still ahead of the Asian Infrastructure Investment Bank, but this could change in the near future with the latter stepping up its efforts in the region.

Vietnam stands to benefit from MNCs’ efforts to diversify their production base beyond China. How much it will actually benefit, however, depends on how fast it can roll out measures to further improve its infrastructure and business environment.

China’s Hubei province — most badly-hit by the Covid-19 pandemic — has pressed the reset button on its economy, becoming China’s first province to implement an economic revitalisation package following the pandemic. Although policy details are not yet released, academics interviewed predict that Hubei will receive more financial subsidies than any other province or city, and industries like auto manufacturing and infrastructure will benefit from industry support policies. Hubei’s revitalisation scheme will also give an idea of how the country’s yet-to-be-released economic stimulus package will look like. While help is on the way for Hubei, due to the enormous economic impact of the coronavirus outbreak, making a fast and effective recovery is going to be a tall order.

Chinese companies listed on US stock exchanges such as Luckin Coffee and iQiyi have been embroiled in accounting scandals of late, causing investors to eye Chinese concept stocks with doubt. What can Chinese companies with hopes of gaining access to foreign investment do to improve their bad reputations by association?

Professor Zheng Yongnian recognises that the economic impact of the coronavirus will be deep. Beyond thinking about whether short-term cash payouts should be given, he mulls over measures that can see China through protracted headwinds. Key is the political will needed to move the country’s strategies away from GDPism, or an obsession with GDP, to those of building social safeguards as the country strives to build a sustainable economy.

Japanese academic Kai Kajitani examines the enormous impact that the coronavirus is having on the Chinese economy. Measures are in place to absorb the shocks — but unlike many countries, the country has so far gone with other routes apart from direct cash payouts. Will these efforts be enough? And are the voices of the underclass in society being heard?

In the aftermath of the 2008 Global Financial Crisis, China trotted out a mega stimulus package that some analysts say did more harm than good. Months into the coronavirus pandemic and China’s support measures have still been measured. How much further will it go in the coming weeks to alleviate the economic strain on enterprises and individuals?

With the IMF forecast of a 3% contraction in the global economy for 2020, the economic outlook for a coronavirus-ravaged world is grim. Cai ponders how the world can pick itself up after going through what the IMF terms “the Great Lockdown” and the onslaught of “the worst recession since the Great Depression, and far worse than the Global Financial Crisis”.

Despite a proposed White House executive order to reduce dependence on China for medical supplies, and a promise by US National Economic Council President Larry Kudlow that the US government will pay for US companies to return home, US companies in China are not biting. Zaobao correspondent Chen Jing speaks to some company leaders to find out why.