China is well positioning in setting global rules
China is positioning in global economic and setting rules for the world business affairs. It is the world’s largest exporter and by some measures also the world’s largest economy, as both IMF and world affairs are calling it the world’s largest economy. It is time for China to play a bigger role in setting international rules, in all spectrum of business.
Free trade agreement will always benefit China and giving access to more than a billion people will set rules in favour of China. It is like no other country can export to china for at least 15 years as because of the largest market market in the world — comparing with UK, UK has to accept Chinese products for at least 15 years under this free trade agreement.
Prime Minister of China appears ready to take up the mantle. He is saying all the right things, explaining the benefits of free trade — from consumer gains to economic growth — and calling for stronger international rules. China has also indicated a new openness to free trade agreements, including with Mexico and other countries.
By reducing transportation costs, China’s “One Belt One Road” initiative could be as important as any major trade agreement. As tariffs have come down, transportation costs have become the binding constraint to trade. Filling this infrastructure gap will help integrate isolated countries into the world economy and could create a new wave of globalization, but fully integrated with the Chinese rules, as they have no other choice at this moment and at least in two decades to come.
There is only one issue as 70% of all these mega corporation in China are state owned. The policy of creating super-sized state-owned firms is neither good for growth nor good for global business.
Muhammad Naeem ul Fateh
