A Study On The Potential Of Bilateral Trade Between Pakistan And China

China and Pakistan are neighboring countries.From the ancient “Silk Road” to today’s “China-Pakistan Economic Corridor”,the economic and cultural exchanges between the two countries have always been very close.In 2019,with the strategic upgrade of the China-Pakistan Free Trade Agreement,the economic and trade cooperation between the two countries has become increasingly frequent.It is of great significance to consolidate and deepen the strategic partnership between the two countries to study the potential of bilateral trade between Pakistan and China,and to explore new impetus and opportunities for bilateral economic and trade cooperation.This paper first expounds and introduces relevant trade theories and research models,and then based on the relevant data of China and Pakistan’s import and export trade from 2011 to 2020,from the total import and export trade volume,trade commodity structure and trade competitiveness and complementarity of the two countries.This paper analyzes the trade status between China and Pakistan,and then through the construction of relevant trade indicators,the trade gravity model is used to empirically analyze the level of trade potential between China and Pakistan.The research results show that China’s trade potential with Pakistan has been declining year by year,and now it has shown a negative situation,while the corresponding Pakistan’s trade potential with China is very high.And the bilateral trade potential between the two countries still has a potential value of more than 10%.Through the research,it is found that the problems existing in the development of China-Pakistan trade mainly include the limited scale of trade between the two countries,the unreasonable trade structure,the large difference in trade levels,the high transportation cost,and the existence of hidden trade security problems.Corresponding countermeasures and suggestions,such as building a transportation network to reduce transportation costs,expanding investment in Pakistan to improve Pakistan’s economic growth,and strengthening cooperation in safe trade between the two countries,etc.,hope that this research can help the development of trade between China and Pakistan and hope that the friendship between China and Pakistan has a long history.