I want to add another important factor to the growing list of crucial elements needed for a country to industrialize. In earlier posts in this thread, I said you need the following:
1)
Technology base. Let's assume critical mass of 100,000 cumulative patents to compete in today's marketplace.
2)
Capital. Hundreds of billions of dollars of cumulative direct foreign investment to build factories.
3)
People. Factory managers, technicians, engineers, and Ph.D. research scientists.
4)
Time. Decades to "build out." Climbing the technological ladder and building all those factories take a lot of time. It took China thirty years to reach the point of building her first modern ARJ-21 passenger jet and assembly plant.
5)
Modern infrastructure. To enable the production and delivery of goods, a country needs modern roads, railways, bridges, sea ports, airports, power plants, hydroelectric dams, telecom systems, etc.
After the first five criteria have been fulfilled, there is still a problem. You need customers to buy the goods that you have produced.
6) A
"big market" to absorb your country's goods.
As I wrote earlier, China is helping to finance and build modern infrastructure in Pakistan. China is also helping to establish special economic zones in Pakistan to "import" Chinese technology, capital/direct investment, and the necessary skilled people to operate the factories.
To solve the final problem of demand for your country's goods, China can help by signing a Free Trade Agreement with your country.
China set to become 4th biggest trade partner of Pakistan: MOFCOM official
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China set to become 4th biggest trade partner of Pakistan: MOFCOM official
2010-02-10
BEIJING, Feb 9 (APP): China is becoming the 4th biggest trade partner of Pakistan, said here a senior Chinese official from Ministry of Commerce (MOFCOM).Addressing the Pakistan-China Trade Promotion Seminar at Pakistan Embassy, Ouyang Cheng of Department of International Trade and Economic Affairs of Ministry of Commerce (MOFCOM) said
both sides enhanced exports after the signing of the Free Trade Agreement (FTA).
Ouyang in his presentation on FTA to the largely attended forum by Chinese entrepreneurs from diverse fields organized by Pakistan Embassy said Pakistan was the “all weather” friend as well as an important trade partner of his country.
“China-Pakistan FTA is an important part of the development of China-Pakistan free trade area”, he observed.
He pointed out that with the joint efforts from both sides,
the development of China-Pakistan FTA was deepening in trade, investment and cooperation of technology.
China-Pakistan FTA achieved great results. Although the global finance crisis influenced economic seriously since 2nd half of 2008, the trade between Pakistan and China performed much better than the other countries with China, Ouyang added.
For example in 2009, the total foreign trade of China declined 13.9 per cent and trade value between Pakistan and China reached USD 6.8 billion with a decline of only 2.9 percent, 11% higher than Chinese whole foreign trade; the export of China in 2009 declined 16% in global and only 7.7% down with Pakistan at USD 5.5 billion.
China import USD 1.3 billion from Pakistan with 25.3 % up and declined 11.2% in global. It is the positive result of the FTA, he observed.
The development of China-Pakistan FTA also solidified the all weather friendship between the two countries and played an important role in Asian Economic integration.
“I would like to mention here that the China-Pakistan FTA in Service which effective since last October is the most open FTA in Service than any other countries with Pakistan or China”, he said.
He continued that based on the promise to WTO, Pakistan will further open 102 sub-sectors in 11 major service sectors among all 160 sub sectors in 12 major service sectors to Chinese service supplier, including construction, telecom, finance, distribution, environment, medical service, tourism, transportation, express, R&D, computer education, entertainment, culture and sport.
Ouyang said that Pakistan will provide more advantage to Chinese service suppliers in shares percentage in the company and employees movement.
On the other hand, he said that China will further open 20 sub sectors in 6 major service sectors all 160 sub sector in 12 major service sectors to Pakistan service supplier, including mineral mining, R&D, environment, hospital, tourism, sport, transportation, translation, real estate, computer, market research, management consultant, publishing, etc.
“The implementation of Pakistan-China FTA in Service is a signal that Pakistan and China will make up a free trade area covering commodity trade, trade in service and investment”, Ouyang said.
Referring to the Global financial crisis, he said that both China and Pakistan are suffering from it and facing problems of slow economic growth, decline of import and export and employment difficulty.
Therefore, he urged that there is a need that
both governments should continue to promote trade , deepen the economic cooperation to enjoy the advantage of FTA in trade and investment.
The seminar held by the embassy of Pakistan, he said provides a good opportunity for Chinese enterprises to further understand the implemented Pakistan-China FTA, FTA in Service and the opening of Pakistan market, he observed.
He expressed the hope that implementation of Pakistan-China PTA would upgrade the economic and trade relationship between the two countries, upgrade the cooperation and communication between the enterprises, deepen the understanding and friendship between the two countries.
He said that his country has achieved great progress in the development of free trade area in recent years and discussing with 31 countries and regions in 14 free trade areas."
