China has opened its first overseas joint economic zone in
Pakistan in a bid to accelerate domestic enterprises' overseas
investment.
The joint economic zone, covering 1.03 square kilometers at
Manga Mandi, 40 kilometers south of Lahore was established by
China's leading home appliance maker Haier and Pakistani firm
Ruba.
Haier has a 55 percent stake in the joint venture while Ruba
holds the remainder in what will be Pakistan's largest home
appliance production base and the first Sino-Pakistan joint venture
of its kind.
"China attaches great importance to economic relations with
Pakistan. Investment in Pakistan benefits both nations," Chinese
President Hu Jintao said after inaugurating the Haier-Ruba Economic
Zone.
The two sides are expected to invest around US$250 million in
the construction of the zone over the next five years.
The firms hope that a number of domestic electrical appliance
firms, ranging from manufacturing to distribution, will be
attracted to the zone. "This project symbolizes the widening and
deepening of economic relations between China and Pakistan," Hu
said.
The establishment of the economic zone is expected to further
boost economic and technological cooperation between the countries,
China's commerce ministry said in a statement.
The ministry said a number of Chinese enterprises were
interested in investing in the zone and the Pakistani side had
agreed to provide services to these enterprises in particular small
and medium-sized firms to facilitate their investment.
As well as manufacturing Chinese enterprises will also assist
Pakistan with staff training and providing technological
assistance.
The commerce ministry said it was encouraging domestic
enterprises to develop similar cooperation zones overseas. Such
zones, which could be built by a single company or a group of
firms, would play a key role in helping Chinese small and
medium-sized enterprises invest abroad, said an unnamed ministry
official.
He said the Chinese government would "fully support them" and
expects more such zones to be established in other countries in the
next three to five years. The inauguration of the joint venture
followed last week's signing of a Free Trade Agreement (FTA)
between China and Pakistan. The FTA boosts bilateral trade and
investment by scrapping tariffs on hundreds of items traded between
the countries.
(China Daily November 28, 2006)