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  1. #11
    Turbanator Senior Contributor Double Edge's Avatar
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    11 Sep 10
    The Chinese want profits...not losses

    Business with China | Dawn (Editorial) | Aug 29 2017

    The rhetoric coming from the Pakistani government had made the relationship sound like it was some sort of family affair. But those sections of the business community who have tried to build commercial ties with their counterparts in China are finding out that, over there, profits come first and sentiment second.

    One thing the business community has noticed is that their Chinese counterparts prefer dealing with the government rather than building private-sector partnerships, according to a report published on Monday in this paper that presented the opinions of a range of Pakistani businesses that have, or are seeking to build, ties with Chinese enterprises. They have noticed that the Chinese do not negotiate very much. They lay down their terms, and expect them to be fully met.
    Squeezing the pak gvt for concessions can yield higher benefits than individual companies, also easier to deal with just one set of people

    The Chinese are hard balling because they think its their money so the SOE's are setting the terms. Paks are good at business, push back and maybe get better terms

    Ever since the CPEC enterprise got under way, calls have been growing for more transparency in its execution. By now, there ought to be no further doubts that the CPEC enterprise goes far beyond roads and power plants, and is, in fact, about creating the right environment for Chinese investment to acquire large stakes in Pakistan’s economy.
    Get the feeling that this edit is pak business lobbying govt for better terms from the Chinese

    Answers to questions like what sort of dispute-resolution mechanism will govern the partnerships envisioned under CPEC, and what investments are being prepared for which areas, will help dispel the growing anxieties.

    It would be a sad but necessary end to the euphoria that has greeted the arrival of CPEC if the government were to learn the same lesson that the business community is busy learning these days, that in matters of business, brotherly relations have no role to play.
    hmm, so nobody knows what investments go where ...there could be very good reasons for that in the initial stages. Its like getting in on an IPO before the IPO

    But once the project gets going does it still remain opaque or not is the question.
    Last edited by Double Edge; 29 Aug 17, at 19:00.

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