Pakistan China friendship is stronger than Himalayas and deeper than Pacific Ocean, its fragrance spreads all over the world; it is among people to people, in the hearts, minds, and sentiments of the people of both the countries. It is time tested, all weathered, long lasted, historical, unique and visionary. Pakistanis consider China as their brother, supporter, trustworthy, reliable and credible friend. Pakistan China friendship is so deep rooted that it is narrated in stories told by mothers to their children, it is told to students in schools, colleges and universities, it is found in poetry and music, it is found in scholars’ articles and research.
China the future of the World
China is a country in East Asia. It is the world’s most populous country, with a population of around 1.4 billion, covering about 9.6 million square kilometers. It is the world’s third largest state by area.
China is the factory of the world. In 1970 its global production contribution was only 3% now it is 25%, it is exporting to about 200 countries and producing about 80% world’s air conditioners , 70 % mobiles , 60% shoes, 74% solar sales , 60 % cement, 50% coal, 45% ship building, 50% steel, is being produced by just one country “ CHINA”. It is also astonishing that about 50% apples are produced by China while USA which is second in rank only produces 7 % apples. It is now the world’s largest economy with GDP of $ 23.25 trillion. It is also the largest exporter of the world with $ 2.2 trillion export. It is surprising that 90% American flags are also manufactured by China. It is normally thought that China can only produce cheap goods but people are highly surprised when they are told that 60% of most branded luxurious items are produced in China. In 1970s it was poorer than African countries. In 1978 its per capita was just $ 155 dollars while it jumped to $ 7,590 which is 49 times increase. It lifted more than 800 million people from poverty. Its mass production policies destroyed the price structure of most of the world’s famous companies and countries. It has competitive edge over many countries due to its mass scale production. Its workforce is highly trained, efficient, active, vibrant and experienced. China is the largest economy in the world by PPP since 2014, the world’s second largest economy by nominal GDP since 2010, and the largest economy in Eurasia. Since the introduction of economic reforms in 1978, China’s economy has been the world’s fastest growing major economy, with annual growth rate consistently above 10%. According to the World Bank China’s GDP grew $ 150 billion in 1978 to US$ 12.24 trillion by 2017. China also recorded the fastest rise in GDP per capita in the world from 1960 to 2018. China is the largest exporter and second largest importer of the world after America. One of the world’s foremost infrastructural giant China has the world’s largest bullet train network, the most super tall skyscrapers in the world. China borders with 14 countries, more than any other country except Russia.
China is the largest manufacturer of the world, 2nd high tech manufacturing since 2012, it is the second largest retail market in the world, it leads world in e commerce accounting 50% of the global market in the world. It is also world leader in the electric vehicles, manufacturing and buying half of the entire plug in electric cars in the world. China has 174 GW of installed solar capacity by the end of 2018, which amounts more than 40% of the global solar capacity. As of 2018 China was first in the world in total number of billionaire and second in millionaires. There were about 658 billionaires , 3.5 million millionaires, . China has higher percentage of people as 100 Chinese are 10% of the wealthiest individuals in the world. China has the world’s largest middle income population.
Pakistan and China are moving towards a new height of their already deep rooted, time tested and all weathered friendship and relations. No conspiracy, plot or plan can create gulf in these ties. Pakistan and China have now strategic partnership and this partnership will continue for centuries as both the countries have desire to cooperate each other in efforts to bring global peace and stability in the region. Strong military ties were also aimed countering terrorism. The relationships have been strengthened by ongoing military plans and agreements between Pakistan and China. China has been a credible source of military equipment for the Pakistani military. The training aircraft includes tailor-made training aircraft for Pakistan. China has designed state-of- the art tailor made weapons for Pakistan, making it’s a strong military power in the South Asian Region.
China is the largest investor in Pakistan’s Gwadar Deep Sea port with a massive US$ 43 billion investment. China has also provided technical and material support for the completion of the Chashma nuclear power complex and plutonium reprocessing facility. Pakistan is China’s one of the major trading partners. Bilateral trade volume exceeded US$ 20 billion.
Pakistan China Trade Statistics US$ billion
Year Exports US$ bn Imports US$ bn Total US$ bn Balance of Trade US$ bn Total export of Pakistan US$ bn % in total exports Total Imports
US$ billion % in total imports
2016 1.906 17.469 19.375 (15.562) 20.533 9.3 46.998 39.2
2017 1.830 18.309 20.139 (16.479) 21.912 8.4 57.518 31.8
2018 2.180 16.967 19.147 (14.787) 23.778 9.2 60.39 28.1
2019 1.807 16.183 17.991 (14.375) 23.818 7.6 50.511 32.0
2020 2.123 15.366 17.489 (13.244) 21.99 9.7 45.89 33.5
Source: SBP. TDAP, PBS
Economy of China 2020
GDP (Nominal) US$ billion : 15,522
GDP per capita (Nominal): US$ 10.839
GDP (PPP) US$ billion: 24,162
GDP per Capita (PPP): US$ 17,205
Total Exports US$ billion: 2,590 6
Total Imports US$ billion: 2,050.6
GDP Composition: Services 52.2%, Industry 39.5 %, Agriculture 8.5%
Trading Partners
Exports
USA: 17.5%
Hong Kong: 10.5%
Japan: 5.5%
Pakistan: 0.6%
Major Import Sources
Japan : 8.5%
Republic of Korea: 8.4 %
USA: 6.6%
Pakistan: 0.1%
Pakistan and China have signed Free Trade Agreement
The Amending Protocol, also known as Phase-II of the CPFTA, intends to deepen trade relations between China and Pakistan through increasing liberalization of trade in goods, safeguarding mechanisms for its domestic industry, and facilitating inter-country balance of payments and electronic data exchange.
Most notably, the Protocol introduces a new tariff elimination schedule to widen mutual market access, amends rules of origin and trade remedies provisions, and adds a new chapter on customs cooperation.
This round of revisions to the CPFTA expands and diversifies trade opportunities for business on both sides, while maintaining fair and equitable protection of local industry interests.
Reduced tariffs, wider market access
The protocol stipulates that the proportion of tariff lines with zero-tariff products between China and Pakistan will gradually increase from 35 percent to 75 percent in a period of 10 years as implemented by China, and 15 years by Pakistan.
There is a need to do serious efforts to increase Pakistan’s share in trade volume.