KARACHI (June 09 2009): The Fourth China South Asia Business Forum, envisaging greater economic cooperation between China and South Asian countries, concluded in Kunming, China, on Sunday. According to a message received here on Monday, leaders of business communities expressed commitment to foster economic relations among them, as the current level of trade is not reflective of the potential available.
Tariq Sayeed, President of Saarc Chamber of Commerce and Industry (SaarcCCI), chairing the session on 'Long-term Co-operative Mechanism', suggested strategic planning to unleash the true economic potential between China and South Asia. He applauded the efforts of the People's government of Yunnan province, China, for establishing two secretariats--one each for China-South Asia Business Forum and China-South Asia Business--in collaboration with China Council for promotion of international Trade (CCIPT) and expressed hope that the secretariats would play a vital role in promoting the cause of the Forum.
Earlier, as keynote speaker at the meeting entitled 'Facing Global Financial Crisis: Economic and Trade Co-operation between China and South Asian countries' Sayeed said that foreign direct investment (FDI) has played a vital role to elevate China as the second largest exporting nation of the world. China will have to make a sizeable investment in South Asian countries, particularly Pakistan, to achieve a quantum leap in trade with South Asian countries, he added.
On account of its ability to produce quality goods at highly competitive price, China enjoys huge trade surplus with 134 out of 225 countries, including independent territories, constituencies, islands, etc, and as a result medium sized economies like South, facing huge trade deficit, perceive China as threat to their economies. He requested the government and private sector of China to change the perception through a sizeable FDI into such countries, which are facing huge trade deficit with her, including Pakistan.
He said that since 2000, bilateral trade between China and South Asia has witnessed a steady growth of more than 20 percent per annum, and expected trade volume to exceed $60 billion by the end of 2009. Referring to a study, he said that China's trade with India would reach $60 billion, with Pakistan $10 billion, Bangladesh $5 billion, Sri Lanka $4 billion, Nepal $800 million and Maldives $200 million in 2010.
However, the pace of China-South Asia trade is relatively slow as compared with China's trade with Asean, which is likely to reach $275 billion by 2010, he said. To improve economic co-operation between China and South Asia, the SaarcCCI president suggested following: increase in Chinese FDI in South Asian countries; transfer of technology; close relationship between business community, particularly youth; frequent exchange of delegations at socio-cultural and economic level; promotion of tourism; removal of non-tariff barriers; technical assistance to increase trade base of production in agricultural and manufacturing sectors.
