Chinese Consul General Sun Chun Ye said here that China can play a vital role in formulating a common strategy for textile with Pakistan and India as these three countries control 65 percent of cotton production of the world.
He expressed these views at a luncheon meeting of the Site Association of Industry (SAI) on Thursday.
He said Chinese textile is facing great challenge in the global market, and this is a cause of concern to the Chinese textile industry, adding China is ready to co-operate with Pakistan in the textile sector.
He noted that during the recent visit of President General Pervez Musharraf to China several pacts were signed, including the textile.
He pointed out that as a follow-up, a high-powered textile delegation headed by a senior minister would be visiting Pakistan soon to accelerate the pace of co-operation.
Sun Chun Ye informed the business community that China is providing no subsidy to its industries, including the textile sector, adding in 80s, China provided free electricity to some of its industries, but later on, this subsidy was withdrawn.
Responding to a very serious observation from SAI regarding the increase in steel prices due to huge purchase of steel from international market, he disagreed with this contention, saying China is one of the largest steel producers of the world, and meeting its own requirement, while China imports only a meagre quantity of steel, and the increase in steel prices is due to the increase of its demand in the world market.
The Chinese consul general said Pakistani and Chinese governments are forcefully regulating border trade, and there has been a marked decline in smuggling of goods across the border.
The Chinese diplomat accepted the fact that the smuggling and under-invoicing are major problems, and they should be eliminated if transparent global trade is to be carried out.
Sun Chun Ye also said the two countries have agreed to attach great importance to co-operation in the field of trade.
The Chinese diplomat said in order to narrow down the trade deficit, it has been decided to increase purchases from Pakistan, and this is evident from the upsurge in bilateral trade.
He advised business community to take delegation to China and present their products. He, however, said the quality must be acceptable with reasonable costs.
Sun Chun Ye said in November, the Board of Investment (BoI) would be organising an exhibition of Chinese investors - a first ever exhibition of its kind.
He also said the Chinese government has been supporting the Chinese companies to come to Pakistan to explore the market, and establish joint ventures, technical arrangements, and procure goods. A delegation of Chinese marble industry is already here, he added.
The Chinese diplomat said many projects are being undertaken or contemplated in the field of agriculture, adding the Chinese consulate can provide details to those who need the information.
He told the businessmen that the domestic demand of the 1.3 billion Chinese is rapidly increasing, and advised them to capture huge Chinese market.
Former SAI chairman Majyd Aziz said in detail about many facets of Pak-China relations. Alluding to the reported statement of the Chinese commerce minister, he said the bilateral trade is in excess of $2.50 billion, adding there is a major disparity between Pakistani figures of about $850 million and the Chinese commerce minister's figures.
This he attributed to smuggling, mis-declaration and under-invoicing of Chinese imports into Pakistan, he added.
Welcoming the guests, SAI Chairman Nisar Shekhani highlighted the features of the bilateral trade between the two countries.
He also presented a bird's eye-view of the role of the Association and its contribution to the nation's economic progress and prosperity.
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