MH.Yang
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If that is the case, why is the Chinese government not speeding up the relocation of labor intensive industries to Pakistan as outlined under CPEC. The power plants are being built or have been built.
Your words don’t hurt our feelings because they are honest. So I hope you will be honest to tell us What is lacking in the relationship for China to make this shift. IMHO, A lot of Chinese money is being invested in unprofitable ventures inside China, but realistically potentially profitable ventures in Pakistan are being ignored (like modern agriculture). Is this the fault of private Chinese companies not wanted to invest outside of China, or something to do with policies of the Pakistani government.
I am especially interested to know why there is a delay in helping Pakistan modernize its agricultural industry, or at least there seems to be a perception that there is a delay or hesitation In the project, and I’m not sure where it’s coming from.
For China, the larger the economies of friendly nations grow the more China doesn’t have to be as reliant on potentially hostile nations. At least in food supplies, helping to modernize the agricultural industries of friendly neighboring countries will ensure food security for China, and a market that can afford to import more Chinese goods.
If you pay attention to the Chinese members of PDF, you will find that they are not willing to comment on the internal affairs of other countries, unless they deliberately humiliate India and other unfriendly countries, because this is the custom of the Confucian cultural circle. But now that you have asked candidly, I will also reply candidly to my own views.
First of all, let's talk about agricultural modernization. I don't know the situation of rural Pakistan, but I can talk about why rural China can realize agricultural modernization so quickly. China's land ownership belongs to the state, while the right to use belongs to the villagers' collective of each village. The villagers collectively distribute the land to each family according to the population, and make statistics and distribution again every 30 years. Every township in China has agricultural technology stations to distribute and sell high-quality seeds, fertilizers, agricultural machinery and other commodities according to scientific statistics. Each agricultural technology station has enough technicians responsible for popularizing and educating the latest agricultural planting technology. These conditions allow the Chinese govt to have a very strong control over land and have sufficient channels to promote new agricultural technologies. I don't know whether Chinese enterprises have encountered problems in their investment in modern agriculture in Pakistan, but I guess the difficulty of promoting modern agriculture in the two countries should be different.
Let's talk about the transfer of labor-intensive enterprises in China. In recent years, China has been driving labor-intensive enterprises out of China because of industrial upgrading, environmental protection and labor shortage. Please allow me to use the word "drive out", because canceling the export tax rebate treatment of these low profit enterprises just is drive out them to leave. China mainly guides these enterprises to enter the Mekong region (Vietnam, Thailand, Laos, Cambodia) and CEPC region (Pakistan). But most of the garment processing industries chose Vietnam, Bangladesh and Ethiopia (Even Ethiopia is in the civil war). The fruit and vegetable processing industry went to Thailand, Laos and Cambodia. The toy industry went to Thailand and Malaysia. Let me talk about China's special preferential treatment to Pakistan:
1, China unilaterally gives Pakistan 0 tariff treatment. When Pakistani goods enter China, the tariff is 0. When Chinese goods enter Pakistan, the tariff is 5-35%. In 2020, China's total consumption was 39.2 trillion CNY, six times that of India. This means that enterprises investing in Pakistan can have a market six times larger than India. This has greatly enhanced Pakistan's attractiveness to foreign investment.http://fta.mofcom.gov.cn/topic/enpakistan.shtml
2, In order to keep Pakistan's economy stable, China agreed to exchange 20 billion yuan currency with Pakistan at a fixed exchange rate (20 billion yuan for 351 billion PKR) every year. This means that Pakistan can obtain 20 billion CNY foreign exchange every year without being affected by currency depreciation (CNY is a currency with stable appreciation). It could also warn international hedge funds not to target Pakistan. https://m.economictimes.com/news/in...p-deal-with-pakistan/articleshow/64305181.cms
3, The Chinese govt selected flagship state-owned enterprises to take the lead in transferring labor-intensive manufacturing industries to Pakistan. For example, Guangdong Meiya group built industrial parks in Lahore and kasul to transfer the textile industry, and Bubugao group(OPPO&VIVO) transferred the electronic product manufacturing industry to Pakistan. And many large state-owned enterprises in energy and transportation are also investing in Pakistan according to the orders of the Chinese govt.
In the process of transferring Chinese labor-intensive enterprises, the Chinese govt has given Pakistan the most preferential treatment and help. If the result is not good, I also think that there must be some reasons.