When industralists and traders talk of trade, the subject is more often China. But Pakistani industrialists look more glumly at the container loads of goods that are making their way into the country and less at the enormous opportunities for exports that the fastest-growing market in the world provides.

China was once dubbed, ‘the workshop of the world’. But that image is rapidly changing as the country continues quickly to transform itself into the the biggest and perhaps the most sought after market of the world.

Growing at a steady rate of 8 per cent a year, Chinese economy represents a market of several million consumers, who are all set to enter the market gates as prosperity filters down and the country opens up to foreigners and their merchandise. Many economists admit that, even in short term, the moment China decides to readjust the value of its currency, the purchasing power of its wage earners would increase by the same factor. Multiply the prospective surge in demand with the size of the working class people in China and one beholds such a huge market that dwarfs all other markets in the world.

A marketplace of that enormous a size, just across the border and one that still is raw in terms of tastes and preferences, doubtless, offers limitless opportunities. But all that is for far-sighted exporters. He who enters first into the Chinese market, would be able to make firm footholds and wrest the largest portion in terms of market share.

But will it be Pakistan? There looks to be a slim chance that we would be able to seize the opportunity presented by the friendliest of the neighbour. Both private and public sectors look to be more preoccupied with issues other than that. There is not many glittering examples in history to show that the country ever made the right move at the right time.

Unfortunately, the traders and industrialist classes still perceive China as ‘the workshop of the world’. Not much has so far been done to conduct serious research on the country as a potential market for Pakistan’s exports. Fierce competition, rising costs of production, law and order situation and political uncertainty has put most manufacturers at the end of their wits. All they seek is safe exit from the field.

Some manufacturers, in sectors other than textile, have already shifted their major interests from industry to trade. Instead of planning additional investment, most are more occupied in preserving their already invested money. In such an environment there is little hope that private sector could take a lead to take the trouble and bear the cost of assessing the depth and breadth of the Chinese market for Pakistani industrial or agricultural products.

“We are in the process of committing another major economic blunder”, says Arshad Alam, Vice President FPCCI. Talking to this scribe, Alam observed that by overlooking the potential that China holds as a market, we were again proving to the world that we have yet to mature as a nation willing to seize opportunities. But, based on his experience, he expressed hope that Pakistani entrepreneur with little support from the government would step into the burgeoning Chinese market, in a major way. He identified a whole range of products that could be marketed in China. “All we need is trust and confidence in our ability to do things the right way”, he said.

And there is the reason to give a hard look at the Chinese market. Most Western markets have already reached a point of saturation. The scope in such markets is all but limited. There is also the question of personal preferences. Consumers in those upscale markets are a bit too sophisticated and given the choice, they would rather avoid products from our region. Negative imaging of Pakistan by media has also scared Westerners who already are not very keen trading partners. It makes little economic sense to continue to chase them, while ignoring the rest of the world.

Riaz Ahmed Tata, President, Federation of Pakistan Chambers of Commerce & Industry, says it this way: “Our pre-occupation with English-speaking markets of US and Europe has done us much harm already. Our presence in French and Spanish speaking markets is negligible. Now is the time to do all that is in our means to study emerging Chinese market”.

China has so far just been perceived and projected as a country that is willing to assist Pakistan in development of metallurgy in public sector. For private sector it is a country that has potential to export both finished products and raw material at affordable prices in abundance.

Cheap imports from China have given rise to the ‘container culture’ that has lured in its fold even some good and efficient manufacturers as well. Influx or dumping of Chinese products is said to have driven several local manufacturers out of the market. It has become a juicy subject for discussion. “We just cannot compete with Chinese products. They are several times cheaper than the lowest price that we can offer to stay afloat”, a local bulb manufacturer who closed his factory last year in Hyderabad, Sindh, moaned.

There are several such businessmen who have given up manufacturing and instead become importers after failing to compete in the market. In their view dumping of goods in the country is going on at a massive scale. “China is pushing its products into Pakistan at prices that are below their cost of production just to capture the market”, says an angry entrepreneur, adding, “And if the industrialist is at a disadvantage, isn’t the country also a looser?”, he asks.

But officials at the Trade Commissioner office of China in Karachi do not quite agree with this generalization and term it as too sweeping a remark.

“We have no interest in destroying any industry in Pakistan. We export on demand. Pakistani traders visit China, they place orders and get their consignments on terms and conditions agreed between trading partners”, contends Mr. Zuo, Vice Counsel, Economic and Commercial Office of the Chinese Consulate. China, he argues, as a policy encourages exports and even gives 15 per cent rebate to producers.

“From our side everything is done absolutely legally, with proper papers and documentation”, he says and adds, “On what grounds can we ask our manufacturers to stop exporting to this particular country”. “If there is any wrong doing going on it should be pointed out and we are willing to look into it”, he said.

Owing to the one-way trade from China to Pakistan the balance of trade is tilted heavily in favour of China. The issue came up in discussions with Chinese delegation that was in Pakistan recently. A number of proposals were discussed, but the local officials possibly sat at the meetings without doing enough homework to come up with gainful outcome.

Its an era of free trade. In an economic environment where trade barriers are being dismantled, there is slim chance that crying hoarse against free imports would serve any purpose for the industry or industrialists class. It would be more fruitful if energies and resources were to be diverted towards identifying areas of comparative advantage keeping in view potential markets where there are better chances of accessibility. Business is business. No one will allow a disadvantage against itself for long on high moral grounds of friendship or compassion. Long term and sustainable development can only be achieved on the strength of competitiveness and efficiency.

A high-profile delegation is to leave for China next month. Will Pakistan be able to make headway in the crucial talks? More than anything, much would depend on the choice of delegates and the level of their preparedness.