The COVID-19 pandemic and Russian invasion of Ukraine have turned the table against the United States as Russia and China are competing more dominantly. The United States and China are employing multiple tools and policies to maintain their stronghold. The battleground to conquer is surely Asia as both sides are intensifying their positions in the region. China’s rise is threatening the position of the United States in the South Asian region due to which the country is engaging more rapidly with its allies such as South Korea and Japan and at the same time, it is developing new initiatives to gain more supremacy. China’s growth is a prime example for Pakistan to follow rise in multiple domains ranging from military to economy.
One of the major reasons for China’s rapid growth is its upgradation of industrial capacity. Through the “Made in China 2025 Strategy”, the country is moving towards self-reliance by reducing export-led growth. The hi-tech industry of China is expanding abruptly as the country is creating awareness for its companies and aims to meet green development targets. However, China has not completely neglected the international sector rather the country is actively integrating itself into global affairs through free-trade agreements. It recently signed the world’s largest free-trade agreement with 14 Asia-Pacific countries through Regional Comprehensive Economic Partnership. Similarly, in September 2021 China applied to join the Trans-Pacific Partnership after President Trump left the initiative. Despite being termed as a competitor of the BRI, China does not see PGII through skeptical lenses. It has welcomed the investment initiatives from the G7 countries and seems to follow a cooperative approach. Thus, China is committed to strengthening its internal and domestic industries but at the same time, it maintains a healthy global engagement due to which the country is strongly deterring the United States. The model adopted by China is indeed a road map for other states to prosper such as Pakistan.
Pakistan can gain numerous benefits from the competitive environment fueled by the United States and China. It is a golden opportunity for the country to achieve its economic interests. Pakistan continues to have good ties with China over the BRI project but it has failed to gain much attention from the G7 countries. This is a vacancy that can be used by the upcoming government to improve the economic and political conditions of the country.China does not see any conflict between the BRI and PGII projects which means Pakistan has a golden chance to participate in the recently launched initiative. Despite having historic ties with Pakistan, China has moved most of its notable manufacturing companies to other states such as Vietnam. It is a failure of the country since the country’s position is not favorable for such giants. Pakistan needs to strengthen its infrastructure alongside political, legal, taxation, and regulatory hurdles to create a suitable platform for other states to invest in. There is a need to bring some serious reforms to uplift the position of the country and gain maximum benefit out of the ongoing crisis.
Thus, as the world order changes, it is also blessing the under-developed states with numerous opportunities to upgrade their position inclusively. Pakistan is no exception as the country’s vital significant position can earn it a good future. To this date, Pakistan has failed to maintain a balance between the G7 states and China. It has blindly relied on the support provided by China while completely neglecting the privileges that can be extracted from the opposite block. Pakistan needs to learn lessons from the rise of China and strengthen its domestic conditions to get more attention from foreign states. It needs to make serious efforts to capture the focus of the G7 countries while maintaining healthy ties with China. A delicate balance of ties and serious reforms in the country can upgrade its position to a much better level.
By: Daniyal Wali
Under arrangement between Matrix and CRSS.