Chinese President Xi Jinping met with Pakistani Prime Minister Shahbaz Sharif in Beijing on Wednesday, November 2nd, 2022, during which the two leaders decided to enhance their strategic alliance and multilateral cooperation in several areas, including the CPEC. They “exchanged views on regional and international developments and broad-based cooperation in economy and investment.” They also expressed their willingness to deepen the all-weather strategic cooperation alliance between the countries. President Xi stated that China and Pakistan should push the China-Pakistan Economic Corridor (CPEC) more effectively and expedite the infrastructure development for the Gwadar Sea Port. China, according to Xi, will continue to help Pakistan’s efforts to realize its potential as a geo-economic hub and expand its economy sustainably. In addition, he announced a new aid package worth RMB 500 million was also announced for Pakistan’s post-flood relief and rehabilitation activities. Prime Minister Shehbaz strongly reiterated the significance of bilateral friendship for regional peace and stability as well as the special historical ties between the two countries. He said that Pakistan drew inspiration from China’s socio-economic development and admired President Xi’s leadership for China’s prosperity and his vision for developing the bilateral relationships. He also expressed his gratitude for China’s constant support for Pakistan’s relief, rehabilitation, and reconstruction efforts following the destruction brought on by the nation’s catastrophic floods. Furthermore, the two leaders reached an understanding that, as a project of strategic importance, both parties will work together to launch ML-1 as an early harvest project inside the CPEC framework. They agreed to complete all the documentation required for the early opening of the Karachi Circular Railway and acknowledged the need for a public transportation project in Karachi. Several agreements covering a wide range of...

Isn’t it a shame that a nuclear-armed country with 220 million people is running a trade deficit with a conflict-battered neighbour next door? It must indeed be a matter of shame. Let us look at the latest figures: Pakistan’s exports to Afghanistan in September numbered around $80 million. The imports from there clocked at $125 million. The total bilateral trade in September 2021 stood at around $1.83 billion. Pakistan exported about $859 million worth of goods and its imports were registered at around $976 million. So the balance of trade has tilted in favour of a country that is under international sanctions and has been through four decades of war. Higher coal imports from Afghanistan since early this year notwithstanding, the history of bilateral as well as the Afghan transit trade via Pakistan has been chequered, at best — largely because of a cold-blooded bureaucracy, security-centric approaches, and rampant corruption from Karachi to the borders such as Torkham, Chaman and Ghulam Khan. Through its short-sighted arm-twisting instinct — and to curb corruption within Pakistan — the predatory bureaucracy has denied the country opportunities of investment by big Afghan traders, even if those staying here on long-term visas are unable to open and operate bank accounts. These potential investments moved mostly to the UAE and Turkey. This also implies a loss of investments and employment opportunities for Pakistanis. The FBR and security agencies devised mechanisms to curb corruption on Pakistani soil but it hurts a lot of genuine Afghan traders. Abuse of transit trade is one thing but punishing Afghan exporters and importers through oscillating and whimsical tariffs under various pretexts is an altogether different bitter reality. Afghan traders and investors either have ownership, partnership or shareholding in at least 350 industrial units in Pakistan. The produce of even these units often encounters administrative hurdles — mainly for extraction by officials...

According to the latest data in the CNBC Supply Chain Heat Map report, China released its latest economic data where the figures do not show a healthy state of affairs, as the economy is struggling domestically and internationally. The main factors attributing to its slowdown can be China’s zero-covid policy and its ongoing trade conflict with the US. Undoubtedly, China’s zero covid policy is a significant factor in the erosion of its long-term dominance in global trade. “China’s Zero Covid approach is impacting production and manufacturers are seeking for alternatives to the current ‘factory of the world’,” said Antonella Teodoro, senior consultant at MDS Transmodal. China has lost ground in profitable consumer categories like the furniture, clothing, accessories, footwear, travel goods and products industries, as there has been a significant decline in production costs since 2016, which has had an influence on the global industrial economy. China’s share of global exports of consumer goods has fallen since 2016 While Vietnam has invested in Metal manufacturing products, Malaysia and Bangladesh have taken over the apparel manufacturing sector. From 2016 to present, Malaysia and Bangladesh have merged into the apparel and accessories domain, what once used to be part of China’s expertise. Since 2018, US trade tariffs have also been looking for alternate sources in China for manufacturing and disruption in costs. This could also be due to the heavy supply demand from other neighboring countries. Bangladesh and Malaysia have eaten into China’s global share of clothing and accessories exports in recent years A rise in intra-regional trade in Asia has been observed for manufacturing especially in Vietnam and other southeast Asian countries.  In the years before to Covid, the competition had grown fierce. Vietnam has taken the lion’s share of the manufacturing trade away from China with an almost 360% increase in far-distance trade since 2014. “Vietnam’s close...

On October 23, 2022, President Xi Jinping officially began his third term as president of China. The congress party’s leadership groups were chosen by around 2,300 delegates, to be formally announced in March during the government’s annual legislative sessions. Xi was also reappointed head of China’s Central Military Commission, keeping him in charge of the People’s Liberation Army. Furthermore, the appointment of six of Xi’s protégés and allies as members of the Politburo Standing Committee was announced. They included Li Qiang, Xi’s former chief of staff, Ding Xuexiang, a close friend of Xi, and Li Xi, the president’s longstanding confidant and leader of the Guangdong party. Apart from two men, anti-corruption chief Zhao Leji and political theorist Wang Huning, the rest of the elected members are all new to the team. After introducing the team, President Xi gave a brief speech in which he thanked the party for placing its trust in them and vowed to bring about the great rejuvenation of the Chinese country on all fronts. He also stressed on modernization which would entail high-quality development and common prosperity, moderate wealth for all people rather than just a few. “I wish to thank the whole party sincerely for the trust you have placed in us,” Xi told journalists at Beijing’s Great Hall of the People after the closed-door vote was announced. No other leader besides Communist Party founder Mao Zedong has ever served a third term, this development solidifies Xi as the most powerful leader since Zedong. Leaders of China’s allies, Russia’s Vladimir Putin and North Korea’s Kim Jong-un were among the first to send their congratulations. The United States offered no immediate response. Pakistan’s President Arif Alvi and Prime Minister Shehbaz Sharif also congratulated Xi Jinping on securing a third term as chief of China’s Communist Party (CPC). The president said in his message that China is Pakistan’s true friend and expressed hope that relations between the...