China’s textile industry has been investing in Pakistan. Chinese investors are getting to know the comparative advantage of Pakistan’s textile sector. Both China and Pakistan enjoy their own competitive edge in the textile and garment sector, points out Vice President of China Chamber of Commerce for Import and Export of Textiles (CCCT). Since the second phase of China-Pakistan Free Trade Agreement came into effect in 2020, more Pakistani products have been able to enter the Chinese market. Tariffs on some 75 per cent of goods from both sides have been gradually reduced to zero since 2020, which has provided access to China for more high-quality products from Pakistan.

China is sharing advanced technology and experience in research, design, manufacturing, management, marketing and brand building with Pakistan. And Pakistan commands a cost-effective raw material supply and abundant human resources. So both sides are stepping up cooperation in trade, investment and resource integration and jointly exploring international markets. China is helping Pakistan's spinning mills become more cost efficient and competitive. Almost 80 per cent of the yarn and other textile products will be re-exported to China for value addition to sell the finished goods at better prices in the international market. When Chinese businessmen carry out their exports jointly with Pakistan, making use of the raw materials as well as Pakistan’s human resources, it adds to the earnings of Pakistan.