It happens gradually, Even India runs a trade deficit with China, so does the most of the world. But with increased identification of tradable items, the trade can be expanded. China earning a trade surplus with Pakistan is not, and should not be seen as a problem for Pakistan (and for India as well), if Chinese products offer the same quality at lesser price tag than an already external product, it saves up differential foreign exchange to be spent upon expensive products to be sourced from elsewhere.But the thing is trade is 80% in favor of China. That's really bad. For all the talk by the Chinese here, the action is missing.
Facts:
Total trade: $10.6 billions
Pakistan exports: $2.12 billions
So obviously China's exports or Pakistan's imports equal 8.48 billion. That's massive. I can't believe that Pakistan thought it would benefit from China FTA. It seems more a political decision rather than economic one. I know, I know China is Pakistan's best friend. But you wouldn't kill yourself to cater to your friend, do you?
PS: The news article very cleverly avoided this outlook to make it sound as if this trade is all hunky dory, which it is not.



