Dr. Hamad Kasasbeh

As His Majesty King Abdullah II travels to China on a state visit, there is an opportunity to view the economic relationship between the two countries from a perspective that goes beyond the volume of trade and investment. The visit comes at a time when trade routes and supply chains are being reshaped regionally and globally, and when an economy’s ability to integrate into production networks and markets has become an important factor in its competitiveness. This raises a central question: how can the relationship with China strengthen the Jordanian economy’s capacity to produce, export, and compete?

There is an important base on which to build. Bilateral trade exceeds $6 billion, while untapped Jordanian export opportunities in the Chinese market are estimated at nearly $400 million. Yet trade volume, important as it is, does not by itself capture the impact of the relationship. What matters more is how much of it translates into domestic production, exports, knowledge, skills, and new opportunities for Jordanian companies. This is where the real value lies: in what remains within the economy and can be built on over time.

This makes the quality of investment more important than its size alone. Some investments add capital and new activity; others also bring technology, skills, export opportunities, and stronger links with local suppliers. The second type leaves a longer-lasting impact because its benefits extend beyond the boundaries of the project itself. It expands what the economy can produce and gives local companies greater opportunities to enter wider markets and production networks. Building on China’s existing investment presence in Jordan also creates scope to move from stand-alone projects toward investments more closely connected to local production and markets, expanding the value retained within Jordan’s economy. This opportunity carries additional weight given China’s broad industrial and technological base and extensive supply networks, creating scope for the relationship to move beyond flows of trade and capital toward deeper production linkages within Jordan.

To turn this potential into tangible economic impact, the quality of selection matters more than the breadth of opportunities. Priority should go to areas in which Jordan can build cumulative capabilities and a durable advantage. A project becomes more significant when new services, suppliers, skills, and related activities develop around it. As these linkages deepen, investment evolves from a stand-alone facility into part of a broader production ecosystem that strengthens the economy’s capacity for growth and specialization.

At the same time, Jordan has assets that can give it a role larger than the size of its domestic market. Its location, Aqaba, trade agreements, industrial zones, human capital, and digital infrastructure can together form an integrated economic proposition. The advantage is not simply that goods can pass through Jordan, but that production, storage, distribution, services, and exports can be built around its location. A location becomes more valuable when it is converted into an economic function.

This becomes even more important as companies reconfigure parts of their production and sourcing networks. Once a facility is established in a location, a network of suppliers, services, and skills begins to form around it, making relocation more costly over time. In a regional economic map that is being reshaped, the opportunity is for Jordan to secure a place within these networks so that an initial investment can become a gateway to additional investments and activities rather than remain a stand-alone project.

In discussions of this kind, Jordan recognizes that the value of investment is not measured by size alone, but also by the local content it generates, its export potential, the knowledge it transfers, the training it supports, and the links it creates between Jordanian companies and supply chains. These are the details that turn investment from a headline number into an economic capability that accumulates over time. The value rises further when a project creates demand for Jordanian services and inputs, raises production standards among connected firms, and opens new markets for them. The impact then extends beyond the project itself into other sectors, making investment a broader driver of productivity and competitiveness.

Execution capability also stands out as an important competitive factor in attracting investment. Investors compare not only costs and incentives, but also the clarity of the investment pathway, the readiness of sites, and the ease of moving from concept to operation. These are areas Jordan can use to strengthen its investment proposition, helping turn opportunities into productive projects that connect with the wider economy and leave a durable impact.

For this reason, the most important dimension of the Jordanian-Chinese economic relationship is not simply the expansion of trade, but what the relationship can add to the capacity of the Jordanian economy. If it supports productive investment, transfers knowledge, broadens the local supplier base, and links Jordan more deeply to wider production networks and markets, the relationship will have added a deeper layer of economic value. The key question then is not only how much the two countries trade, but what the relationship adds to Jordan’s ability to produce, export, and compete.