Raad Mahmoud Al-Tal

Jordan does not need to compete with China in areas where China has a clear advantage. Instead, Jordan needs to build on its own strengths and competitive advantages and become part of Chinese and global value chains in areas where it can compete successfully. The goal should be to focus on products and industries that Jordan can produce and export, so that cooperation with China can increase local value added and strengthen the competitiveness of the Jordanian economy.

This is exactly the direction highlighted by His Majesty King Abdullah II during his important visit to China, which was accompanied by a joint statement, agreements, and memoranda of understanding. The visit comes at an important time for Jordan, as the economy needs to attract more investment, diversify its markets, increase exports, attract new technology, and move from an economy that depends heavily on consumption and services toward one that produces more, exports more, and creates more jobs.

The joint statement covered many important areas, including trade, investment, energy, minerals, agriculture, tourism, industry, and supply chains. It also highlighted the digital economy, artificial intelligence, and advanced industries. Together, these areas provide an opportunity to build a stronger and more productive economic relationship between Jordan and China.

Investment is one of the most important areas. Jordan has a strategic location, relative stability, a network of trade agreements, and a well-educated workforce. However, the country still needs more foreign investment to support economic growth and development. China can be an important source of capital, technology, and experience, especially in industry, infrastructure, energy, and minerals.

However, attracting Chinese investment should not be the main goal by itself. What matters is the quality of the investment. An investment that creates new production, provides jobs, uses local resources, transfers technology, and increases exports is much more valuable than an investment that only serves the local market. The success of the partnership should therefore be measured by the value it adds to the Jordanian economy.

Cooperation in energy and minerals is especially important. Jordan has mineral resources that could support new industries. But the real economic benefit does not come simply from extracting and exporting these resources. The greater opportunity is to develop industries around them and produce higher-value products. Chinese technology and investment can help Jordan move from simply using its resources to creating more value from them.

The agreement on industry and supply chains is also important. Jordan cannot compete with China in large-scale manufacturing, but it can find areas where it can play a specialized role in global value chains. Jordan can develop industries that make use of its geographic location and its trade agreements with regional and international markets.

The digital economy and artificial intelligence offer another important opportunity. These sectors do not require large natural resources or a huge industrial base. They mainly require skilled people, strong digital infrastructure, good regulations, and innovation. Cooperation with China can therefore help Jordan develop digital skills, transfer knowledge, and create new opportunities for technology-based exports.

Tourism is another promising area. The agreement to improve air connections between the two countries is an important practical step. China has a very large tourism market, and attracting more Chinese visitors to Jordan could increase tourism revenues and support hotels, restaurants, transportation, retail, and other services. But this requires more than promotion. Jordan needs regular direct flights, tourism products designed for Chinese visitors, effective digital marketing, and easier payment, booking, and communication services.

The biggest challenge, however, is to make sure that this partnership helps Jordan increase its exports. This requires a clear national strategy. Jordan should not only import Chinese technology. It should use that technology to increase productivity and competitiveness. It should not only attract Chinese capital. It should direct that capital toward productive and export-oriented sectors. It should also not only attract Chinese tourists, but develop a tourism industry that keeps a larger share of tourism spending inside the Jordanian economy.

The agreements signed during the visit can be the beginning of a new phase, but they are not the final goal. Memoranda of understanding provide a framework for cooperation, while actual projects, investment, trade, and exports will determine whether the partnership succeeds.

The next step should therefore be to move from agreements to implementation. Each agreement should have clear targets and performance indicators. Priority projects should be identified, along with expected investment, job creation, export opportunities, local content, and technology transfer.

Jordan has a valuable opportunity to deepen its economic relationship with China. China has capital, technology, experience, and access to large markets. Jordan has a strategic location, skilled human resources, investment opportunities, and access to several regional and international markets.

Jordan does not simply need more trade with China. It needs a more productive economic partnership with China, one that increases investment, production, exports, productivity, technology transfer, and employment.