The Kabul times, Afghanistan Trustable News Agency.

The mutual economic attractions of Afghanistan and China for each other

Although the current state of economic relations between Afghanistan and China shows an optimistic future, Afghanistan and China have many economic attractions for each other, and the high investment of each of them can create a revolution in the economic relations of the two countries. China is perhaps the only country in the world that produces everything. In other words, this country is a complete production package in all fields. In addition to the production diversity of this country, its other feature is that the products of this country are many times cheaper than the products of other countries and are even made according to the customer’s demand. That is why today Chinese products have been able to occupy almost all world markets. Although the Afghan market has seen an increase in China’s production in the last few years, with the creation of direct transportation routes, especially the construction of a direct road through Wakhan Badakhshan and the direct connection of the two countries to each other, the Afghan market will witness the further growth of China’s industrial production. Just as Chinese industrial products can grow significantly in Afghan markets, Afghan products are also very attractive in Chinese markets. Although Afghanistan cannot have industrial production, products such as fruits (dry and fresh), handicrafts, carpets, animal textiles, precious stones, and marble, are among the products of Afghanistan that have very good demand in the Chinese market. They also include Afghanistan’s exports to China. Currently, China is the only country in Asia that has the first place in the industry and technology sector. Even according to predictions, this country will become the main pole of industrial production in the world in the next few years. Since Afghanistan is a nonindustrial country and in this field is completely consumer, cheap and high-quality Chinese products can be a good option in sectors such as electronics, telecommunications, home appliances, and various types of machinery. Apart from everything else, what has made Afghanistan extremely attractive to China is the presence of a significant amount of mineral reserves, including copper, coal, iron, niobium, cobalt, gold, molybdenum, silver and aluminum. Also, sources of fluorspar, uranium, beryllium, talc, and lithium in Afghanistan. Also, Afghanistan has significant reserves of oil and gas, which are mainly located in the north of the country. It is even said that some of these items, such as lithium, are equal to the largest mine of this element in the world in the country of Bolivia. Based on initial estimates made in 2010, the estimated value of Afghanistan’s reserves is up to three trillion dollars. China has paid special attention to Afghanistan due to its economic and industrial growth, which strongly needs mineral resources. In this field, China also paid attention during the Republic period, and despite the opposition of the United States, they were able to sign multibillion dollar mining contracts (Aynak Logar copper mine contract and the contract in the Amu Darya oil field) with the Afghan government, but for reasons that have already been mentioned. Their operation did not start. Now that the Islamic Emirate is ruling in Afghanistan as an independent government and almost free from direct foreign influence, especially the U.S., China has once again shown its interest in investing in Afghanistan’s mining sector. In this period, in addition to the fact that China announced its commitment to start the mining of the Aynak Logar copper mine, it also signed new contracts with the Islamic Emirate, the most important of which was the extraction of oil in the Amu Darya area. This agreement was signed with the Chinese company CPEIC with an initial investment of 150 million dollars and 540 million dollars for 25 years in the next three years. The initial stage starts with the extraction of 200 tons per day and increases to 20,000 tons per day. In addition, a Chinese company jointly with an Afghan company has won a gold mining contract in Takhar province worth 310 million dollars. Also, a large Chinese company is considering a large investment in Afghanistan’s coal for electricity production. According to reports, about 100 Chinese companies have been registered in the Ministry of Mines and Petroleum of the Islamic Emirate, which are interested in investing in various sectors, and about 500 Chinese businessmen have entered Afghanistan to consider high investment in mines. Another thing that has made Afghanistan attractive to China is the transit position of this country. Afghanistan is the only country that connects China to West Asia by covering the shortest geographical distance. To be more precise, if China passes through Afghanistan, it can reach Iran as the gateway to Western Asia and Europe less than 2,000 kilometers away. This was while China had abandoned Afghanistan in the “Belt and Road” project. The only reason that can be given for this abandonment was the presence of America in Afghanistan and the unfavorable security conditions of Afghanistan under American occupation. With the meeting of the Islamic Emirate and the continuous and effective efforts of the officials of the Islamic Emirate, the Chinese government committed to making Afghanistan a partner in this big plan. In the initial plan, Afghanistan was supposed to join the plan through the CPEC project. With Afghanistan’s participation in the Belt and Road initiative, it will be possible for China to invest several million dollars in infrastructure projects in Afghanistan. Along with the inclusion of Afghanistan in the Belt and Road project through Afghanistan’s participation in the CPEC project, efforts are also underway between the two sides to open an independent route through the Wakhan Corridor that will connect China to West Asia and through that to Europe. In addition to this, apart from the direct railway line between Afghanistan and China through Kyrgyzstan, and Uzbekistan, other projects such as the railway line known as the Five Nations (Iran, Afghanistan, Tajikistan, Kyrgyzstan, and China) are also on the agenda of the concerned countries, which may be implemented in In the future, practical steps should be taken to implement it. By: CSRS

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The Kabul times, Afghanistan Trustable News Agency.