China's 75-Year Economic Transformation Inspires Emerging Economies

As the world prepares to celebrate the 75th anniversary of the founding of the People’s Republic of China (PRC), a newly released report titled “CHINA’s 75-Year JOURNEY Breaking Myths & Inspiring Hope” sheds light on the remarkable economic transformation that China has undergone over the past decades. This report, published by KTrade Securities Limited, a prominent stock and commodity brokerage in Pakistan, highlights the speed, consistency, and inclusive nature of China’s economic growth, offering an optimistic outlook for the future.

Ali Farid Khwaja, the Chairman of KTrade Securities, emphasizes that China’s journey serves as an inspiration for emerging markets and underdeveloped countries worldwide. He points out that China has shattered many myths that have long held back the aspirations of these nations. For instance, a common belief in many emerging markets is that they can never catch up with developed countries. This mindset has led many individuals from countries like India, Pakistan, and various African nations to seek opportunities abroad. However, China has demonstrated that it is indeed possible for an economy to grow rapidly and achieve developed status in a relatively short time.

One of the most significant achievements of China’s economic growth is the lifting of 800 million people out of poverty. Khwaja describes China’s economic rise as “unique,” noting that traditional models of economic growth often relied on resource extraction. In contrast, China’s growth has been driven by domestic reforms and the efficient use of existing resources. This approach has allowed China to innovate and produce high-quality goods at competitive prices, making advanced technology accessible to a broader audience.

The report also addresses the impact of trade disputes between China and the United States, asserting that economic rationality will ultimately prevail. Khwaja explains that China has developed a symbiotic relationship with other countries, particularly major economic powers. The belief is that if other nations prosper, China will also benefit. This interconnectedness is a cornerstone of China’s success, as it fosters collaborative growth.

One of the key projects that exemplify this collaborative spirit is the China-Pakistan Economic Corridor (CPEC), launched in 2013 as part of the Belt and Road Initiative (BRI). The report highlights CPEC’s potential to capitalize on Pakistan’s geographical significance and improve its socio-economic conditions. Over the past decade, Pakistan’s Large Scale Manufacturing (LSM) index has grown by an impressive 43%, with significant growth attributed to energy projects initiated under CPEC. The establishment of Special Economic Zones (SEZs) is expected to further boost this index by 2030.

Moreover, the Asian Development Bank (ADB) estimates that CPEC could increase Pakistan’s GDP by 2.5% by 2030 through infrastructure improvements, enhanced connectivity, and the creation of new industries. In 2022, Pakistan’s exports to China saw a 14% increase, reaching a total of $3.6 billion, a growth that can be partly credited to the enhanced connectivity provided by CPEC.

The 75-year journey of the People’s Republic of China serves as a powerful reminder of what can be achieved through determination, innovation, and collaboration. As emerging economies look to China for inspiration, it is essential to recognize that growth is not solely about resources but also about harnessing existing capabilities and fostering relationships that benefit all parties involved. The lessons learned from China’s experience can guide other nations on their paths to economic development, encouraging them to break free from limiting beliefs and strive for a brighter future.