Increased exports
Increased Chinese exports to Pakistan—fruit of CPEC
The world has all eyes on a mega project Pakistan has to launch with the collaboration of China. Ever since the prime minister of Pakistan has formally inaugurated the China-Pakistan Economic Corridor (CPEC) project in November last year, a rapid increase in exports from China has been recorded.
Sources report a considerable increase of 14% in export from the figures of previous year which was 11% back then. This increase points out towards the upward trend in trade with other countries.
Positive impact of this project was also witnessed in China’s foreign trade as of the fourth quarter of 2016. A 3.8 percent inclination was seen in the foreign trade which helped stabilize the domestic economy.
What is CPEC project?
CPEC is considered a game changer for economic growth and development of Pakistan and China. Both countries have joined hands to build a nearly 3000 km long economic corridor connecting Pakistan’s port on the Arabian Sea with Xinjiang of China. This route will provide easy access to Middle Eastern and African markets for Chinese exports.
On the same time Pakistan will get a benefit of transporting oil and other cargo to Pakistan through China a cheaper channel. The route has been opened after inauguration in a partially completed state. Both economies are meant to grow after the successful completion of this project.
Import and export trends in 2015 and 2016
The exports were recorded to go up by 0.3 percent as compared to that of last year in the last three months. The imports on the other hand climbed to 8.7 percent during the same time of the year as compared to a decline which was seen last year.
The total export and import in the year 2016 decreased to 0.9 percent year on year to 24.33 trillion Yuan. In 2015, the total import and export of the country had a downfall of 7 percent year on year to 24.59 trillion Yuan, which is obviously a notable change.
The improvement in China’s economy is vivid through the above-mentioned facts. The figures suggest that the graph of overall foreign trade is climbing up despite a slow rate of trade activity and declining world economy. China is progressing by leaps and bounds in domestic economy and the stability has paved ways for export of all the surplus goods.
Foreign trade of surplus material trends
China’s foreign trade (CPEC) surplus decreased to 3.35 trillion Yuan in 2016 which when compared to figures of last year is said to be 9.1 percent decrease. With the increase in domestic demand of crude oil supply to 381 million tons, the oil was imported to fulfill the requirements.
To maintain constant supply, the imports in 2016 were increased by 13 percent when compared to that of last year. Same is the case with iron ore. The imports reached to 1.024 billion tons after a 7.5 percent increase.
