Vaccine surge, commodity price curbs

After a slow start, China’s COVID-19 vaccine rollout is now one of the world’s fastest and is currently responsible for over half of daily inoculations globally. At this pace, China could catch up with the developed world within a quarter or two and achieve herd immunity by year-end. This should support a further rebound in the service sector, which even in China is still being held back by the pandemic. Meanwhile, the State Council has called for further efforts to cap rising commodity prices. But with capacity already stretched and few signs of speculative activity, administrative tools will be of limited use. A drop in demand may do the job instead, as the withdrawal of last year’s stimulus weighs on construction activity.