China capturing Pakistans export market to Australia

[Free Tibet]

By Tanveer Ahmed

KARACHI: The strong presence of China is blocking the growth of Pakistani exports to Australia.

Except rice, the red dragon of the east is the main supplier of those products, which are Pakistan’s top exporting products, a study of Trade Development Authority of Pakistan (TDAP) revealed.

China is the major competent in the products of bedwear and towels and has captured around tow-third of the Australian market.

In case of towel, Bangladesh is enjoying a duty free market access, whereas Pakistan, India and China are facing 17.5 percent import duty.

It mentioned that during the last five years Pakistan’s export to Australia was stagnant at around $120 million. However, last year there was an increase of 13 percent in exports to the Australian market.

On the other hand, Pakistan’s import from Australia showed ups and downs in the previous years. However in year 2007 and 2008, it had increased significantly to $484 million.

Trade balance remained in favour of Australia and mostly the deficit was more than two and some time three times of Pakistan exports to Australia.

Rice was biggest export item to Australia in 2008. Bed linen of cotton, bed linen of other textile material and towels were the second, third and forth biggest items this year.

Other important items’ export has increased like surgical instruments, leather garments, leather gloves, gloves impregnated, knitted, curtains and broken rice while export of sports related items, cotton fabrics and footballs have decreased.

The study indicated that during year 2008-09, exports to Australia were on the decline and no commodity showed any indication that it would surpass except knitwear, surgical instruments and leather gloves.

On the other hand, coal was the largest import item of Pakistan, which constituted 31 percent of total import from Australia. Colza seeds, phosphate fertilizer and lead were the second, third and forth largest importing products.

On the investment side, Australian investment in Pakistan turned negative with the outflow of $73 million as portfolio investment last year, which otherwise was consistently increasing in the previous years.

Daily Times - Leading News Resource of Pakistan

 

[Spring Onion]

China is taking over everyone. Eeven the US in some sectors so whats so special about this news

 

[Free Tibet]

China is taking over everyone. Eeven the US in some sectors so whats so special about this news

Agreed, but It's about growth and self reliance of Pakistan.
In the past it was USA which have used Pakistan or Pakistan was depended on it now its the turn of China.
Today it's Australia, tomorrow some other nation how the Pakistan going to become economically independent.

We all know about the state of Pakistan's economy. Surely with the hard work and talent of Pakistanis, Pakistan can march to prosperity but we all have to understand how on earth it will happen in this kind of conditions.

When a consumer chooses cheapest product in the market by default it will be of Chinese/Indian/Mexican origin. The India, Brazil and Mexico are now focusing towards service sector with their cheapest white collar work force.

In short, Manufacturing jobs/market goes to Chinese and service sector jobs/industries goes to India/Brazil etc.

What Pakistan will get, how it will survive the fast changing and investment driven world of cut throat competition

It's about the bread and butter of people's of Pakistan, jobs, trade and industry of Pakistan.

Most importantly China is friend of Pakistan. And Chinese claims that they are the only friend of Pakistan.

You can't says like
Duniya main sab marte hain agar aapka koi sagawala mar gaye to kya hua.
everyone in the world dies but when someone from the family dies it is his loss.

 

[Spring Onion]

It is not the fault of China if Pakistan lost a market to them, neither its fault of China if US or India lost a market to them.

The only reply is to improve the quality and compete, try hard to get new markets. Australia or for that matter any single country is not the end of the wiorld.

 

[Free Tibet]

It is not the fault of China if Pakistan lost a market to them, neither its fault of China if US or India lost a market to them.

The only reply is to improve the quality and compete, try hard to get new markets. Australia or for that matter any single country is not the end of the wiorld.

Please understand, I haven't predicted doomsday. Just posted a report of Trade Development Authority of Pakistan (TDAP) publisheded by a Pakistan Newspaper.

Moreover i have said with the hard work of Pakistanis, Pakistan will march towards prosperity. It is the question of how it will happen.

Today it's Australia tomorrow some other nation.

When China have cheapest labor + makes a product in huge quantity + have vast supply of raw materials + years of experience + huge investments.

Correct me if i'm wrong you are talking like you are telling chinese perspective but what about Pakistan.

You have rightly mentioned about quality but quality requires cutting edge techniques and huge investments. More importantly it i have to sell a product it has to be of good quality as well as price competitive. We can't sell product at premium like Japan.

You have not asked but i'm telling from my side that what China can do is that they should leave some industries and products in which Pakistan is good at. So, Pakistani companies can utilise their talent and have supremasy over them. Also China can provide the capital needed and techniqes.

But, as you know Chinese are investing only as per their profits and motives. Like they want oil & gas route they are investing in Gwadar port & Kashmir etc.

 

[TaimiKhan]

Please understand, I haven't predicted doomsday. Just posted a report of Trade Development Authority of Pakistan (TDAP) publisheded by a Pakistan Newspaper.

Moreover i have said with the hard work of Pakistanis, Pakistan will march towards prosperity. It is the question of how it will happen.

Today it's Australia tomorrow some other nation.

When China have cheapest labor + makes a product in huge quantity + have vast supply of raw materials + years of experience + huge investments.

Correct me if i'm wrong you are talking like you are telling chinese perspective but what about Pakistan.

You have rightly mentioned about quality but quality requires cutting edge techniques and huge investments. More importantly it i have to sell a product it has to be of good quality as well as price competitive. We can't sell product at premium like Japan.

You have not asked but i'm telling from my side that what China can do is that they should leave some industries and products in which Pakistan is good at. So, Pakistani companies can utilise their talent and have supremasy over them. Also China can provide the capital needed and techniqes.

But, as you know Chinese are investing only as per their profits and motives. Like they want oil & gas route they are investing in Gwadar port & Kashmir etc.

There is no fault of China in it, it is our own doing. If China doesn't captures that market it will be taken by someone else.

It is for us to make our products compatible enough to get exported, but with current conditions, would be hard too.

In many segments, even Bangladesh and India have taken our share of the market, should be blame them, NO. They made then good competitive and won, same is China doing.

 

[SSG VIPER]

Sorry but thats a reality.Due to cheap chinese goods local home grown small industries have had to face a lot its time we support our local producers not just relying on cheap chinese stuff just coz its cheap,note most of the stuff lack quality.
its like cheap= not reliable
a little pricey with good quality and locally made

 

[Iggy]

In the time of globalization we have to face stiff competition from every country..Its natural..the company with right price and right quality wins ..

 

[PakistanAK47]

Please understand, I haven't predicted doomsday. Just posted a report of Trade Development Authority of Pakistan (TDAP) publisheded by a Pakistan Newspaper.

Moreover i have said with the hard work of Pakistanis, Pakistan will march towards prosperity. It is the question of how it will happen.

Today it's Australia tomorrow some other nation.

When China have cheapest labor + makes a product in huge quantity + have vast supply of raw materials + years of experience + huge investments.

Correct me if i'm wrong you are talking like you are telling chinese perspective but what about Pakistan.

You have rightly mentioned about quality but quality requires cutting edge techniques and huge investments. More importantly it i have to sell a product it has to be of good quality as well as price competitive. We can't sell product at premium like Japan.

You have not asked but i'm telling from my side that what China can do is that they should leave some industries and products in which Pakistan is good at. So, Pakistani companies can utilise their talent and have supremasy over them. Also China can provide the capital needed and techniqes.

But, as you know Chinese are investing only as per their profits and motives. Like they want oil & gas route they are investing in Gwadar port & Kashmir etc.

O Jigar,
When we are happy whats wrong with you?

 

[Patriot]

Haha..op you are such an idiot.So if Australians are buying Chinese stuff instead of Pakistan..It's China's fault??Get your head out of your ***.

 

[Skies]

Competition will bring more quality and development, no problem.

 

[Bushy]

It does not make any economic sense. I have never seen a country compromising on something like a market, that too an export one, for the sake of an ally. It will be completely foolish for China not to capture a market left out to be captured, only so that Pakistan can take advantage of it.

Doing so may bring the quality of commodities lower and demands much higher, and such great losses to China that could have been profits. Worse: seeing a void in the market, a country like India might jump in to fill it quickly and dominate the market for years, keeping the Chinese out too.

It is all the faults of Pakistani manufacturing bases that are not competing well in the market.

If the Chinese start entertaining such sentiments for their Pakistani counterparts, to wahi baat ho gayi - hum to doobenge sanam, saath tumhe bhi le doobenge

 

[deckingraj]

It does not make any economic sense. I have never seen a country compromising on something like a market, that too an export one, for the sake of an ally. It will be completely foolish for China not to capture a market left out to be captured, only so that Pakistan can take advantage of it.

Doing so may bring the quality of commodities lower and demands much higher, and such great losses to China that could have been profits. Worse: seeing a void in the market, a country like India might jump in to fill it quickly and dominate the market for years, keeping the Chinese out too.

It is all the faults of Pakistani manufacturing bases that are not competing well in the market.

If the Chinese start entertaining such sentiments for their Pakistani counterparts, to wahi baat ho gayi - hum to doobenge sanam, saath tumhe bhi le doobenge

I second this...It has nothing to do with China-Pak bonhomie...Allies are for some purpose..They both are benefited from each other and that's why they are allies...If Pakistan is loosing market than they have to ensure their products are better in quality or price as compared with chinese and for that matter indian or any other nation...Will they be able to do or not that is up to Pakistani's....China cannot help them in that regard....

 

[Peshwa]

China and Pakistan are allies.....NOT at the cost of China or its economy....

I dont see how this is China's fault...besides China is giving everyone a tough time...not just Pakistan.

 

[Hulk]

This decade belongs to China, so to speak.