On Wednesday the 15.12.21, Mr. Zhang Xi’an the Vice President of China Chamber of Commerce for Import and Export of Textiles (CCCT) stated in an Interview that China and Pakistan have their own advantages in the textile and garment sector but Chinese businessmen are open to strengthening trade and investment cooperation with Pakistan in this field because bigger opportunities are at the horizon.
Bilateral trade has increased since the second phase of China-Pakistan Free Trade Agreement came into effect in 2020 and as such, Chinese companies were able to import more Pakistani goods. China's textile industry has improved a lot and raised further the investment at the local economy but on the other hand, Pakistan has also provided attractive incentives for Chinese enterprises investing in Pakistan. For example, to draw attention to Pakistan's competitive edge in the textiles sector CPEC Authority organized a meeting with CCCT, Chinese textile investors and companies at the end of November.
During the interview Mr. Zhang Xi’an discussed the potential for cooperation in the textile industry between China and Pakistan in particular for home textiles. According to the World Bank, Pakistan is among the top cotton producers in the world and in 2020 only Pakistan exported home textiles worth of USD 3.8 billion, accounting for 28% of its total textile and garment exports. Pakistan has the 3rd highest textile exports to the US and is the 2nd top supplier to Europe.
What does it mean: Pakistan occupies an important position in the supply chain of the international home textile industry and has a high share in the international home textile market with strong competitiveness.
China’s aim is to share their advanced technology in the form of manufacturing, research, design management, etc. with Pakistan. But is China really better and advanced? One big advantage of doing business in Pakistan is that has very competitive cotton prices and a large pool of human resources at a very high technical edge.
Did you know:
China Chamber of Commerce for Import and Export of Textiles (CCCT) got established in October 1988 and is a part of Ministry of Commerce, China, who is the largest textile and apparel trade agency in China and the world.