Much scope for Pak-China collaboration

The Third Plenum of the 18^th Chinese Communist Party Central Committee concluded in November this year. The session caught the world’s attention and media spotlight after numerous reports and commentaries poured in. The core decision endorsed during the session (also referred to as ‘the plan’) vowed to build a more open economy and made tangible arrangements for further opening up, which were set to provide new vigour and momentum for further development.

China began its reform and opening-up drive in 1978. It has achieved galloping economic growth in the last 35 years and Chinese society has witnessed significant progress. However, the Chinese economy is at a new starting point as it is undergoing a growth slowdown and sticky structural adjustment in recent years. Domestically, the economy could not continue with its model of growth because of ever-growing restraints on resources, energy and environment, as well as rising labour costs. In addition, a lot more progress is needed in the transformation of government functions and establishment of various intermediaries. Internationally, there have been significant changes in globalisation, the pattern of world trade and competition and cooperation of global industries.

Global communities, especially developing countries, have higher expectations of China’s development and cooperation. Meanwhile, developed countries have made increasing requests on China in protection of intellectual property rights and market access. In this context, we ought to open up further to avoid stagnation of the Chinese economy.

The committee’s plan said that China would open up further to the outside world by lowering the investment threshold, stepping up the development of free-trade zones and increasing the opening up of inland and border areas. So, what will the Chinese government do in this context?

Firstly, more work will be done to expand the opening up of inland and border areas. The Chinese government is going to encourage border areas to conduct more trade and other economic cooperation with neighbouring countries, so that local industries, such as manufacturing, logistics and tourism can bloom.

Secondly, the Chinese government will work to widen market access for foreign investors, speed up unifying laws and regulations for both domestic and overseas investors, and endeavour to keep the investment policy stable, transparent and predictable. Moreover, the country will allow services in the areas of finance, education, culture and medical care to foreign investors in an orderly manner, and at the same time, lift access restrictions for foreign investors in child care and elderly care, architectural design, accounting and auditing, commercial logistics and e-commerce. The manufacturing sector will also become more open.

Thirdly, more efforts will be made to optimise the structure of foreign trade and to build up export competitiveness by focusing on technology, brand, quality and service. Fourthly, the government will work to integrate multilateral cooperation with regional and sub-regional cooperation and step up the development of free trade zones.

The Chinese people are, at the same time, striving for the ‘Chinese Dream’, with the aim of accomplishing more national development. China and Pakistan are two highly complementary economies with huge potential for deeper cooperation. At present, the growth of friendly cooperation between China and Pakistan is embracing new opportunities. As two major countries with regional and global influence, China and Pakistan have much to offer to each other and the spaces for collaboration remain huge. Thus, I see no reason for us to make any delay in seizing this opportunity and taking full advantage of our traditional friendship to pursue a wider cooperation. China stands ready to join hands with our Pakistani brothers and make fresh efforts to create new chapters in our bilateral relations and strive for common progress.

Published in The Express Tribune, December 23^rd, 2013.

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