PRC at 75: An Inspiration for Emerging Economies

BEIJING – As China celebrates the 75th anniversary of the People’s Republic of China, KTrade Securities Limited has published a thought-provoking report titled “China’s 75-Year Journey: Breaking Myths & Inspiring Hope”. The report highlights China’s rapid and consistent economic growth over the past decades, a journey that has had a profound impact on global markets, especially emerging economies like Pakistan.

Ali Farid Khwaja, Chairman of KTrade Securities, described China’s economic rise as a remarkable success story that shatters long-held beliefs in developing countries. “For years, people in countries like India, Pakistan, and Africa believed they had to migrate to developed nations for better opportunities. China’s growth has shown that it’s possible to achieve rapid economic development and catch up with advanced economies within a short time frame,” he explained.

China’s Economic Growth: A Unique Model

Khwaja emphasized that China’s development model is unique in history. Unlike traditional growth strategies based on resource extraction, China’s success stemmed from domestic reforms and efficient use of existing resources. “China’s growth was not a zero-sum game,” said Khwaja. “They produced high-quality, affordable products, such as telecom equipment, solar technology, and electric vehicles, making these accessible to the world. In some cases, China even subsidized these technologies for other countries, promoting equitable growth.”

The report also noted that despite trade tensions between China and the U.S., China’s symbiotic relationships with other global powers and economic markets will prevail in the long term. “China believes in a win-win philosophy: if other countries succeed, China succeeds,” Khwaja added.

CPEC: A Game-Changer for Pakistan

The report singled out the China-Pakistan Economic Corridor (CPEC) as a transformative project under China’s Belt and Road Initiative (BRI). Since its launch in 2013, CPEC has leveraged Pakistan’s geographical importance to boost socio-economic development, particularly in the Large-Scale Manufacturing (LSM) sector.

Pakistan’s LSM index has grown by 43% in the last decade, driven by energy projects under CPEC, with further exponential growth expected as Special Economic Zones (SEZs) become fully operational by 2030. The report also referenced the Asian Development Bank’s projection that CPEC could increase Pakistan’s GDP by 2.5% by 2030 through infrastructure improvements and enhanced connectivity. In 2022, Pakistan’s exports to China grew by 14%, reaching $3.6 billion, a surge partially attributed to CPEC’s enhanced connectivity.

The report concludes that as China continues to advance in emerging sectors like artificial intelligence, green energy, and automation, its model will serve as an inspiration for emerging markets worldwide, including Pakistan.