ANALYSIS OF JORDAN’S FOREIGN TRADE WITH A FOCUS ON ITS ECONOMIC RELATIONS AND TRADE WITH CHINA FROM 1990–2021
This study aims to analyse the economic and trade relations between Jordan and China by monitoring changes in the volume and composition of goods exported to and imported from China. Additionally, it will track the path of investments and aid provided by China to Jordan. The signing of bilateral agreements between China and Arab countries, as well as the development of cooperative foundations, has contributed to an increase in the trade volume between Jordan and China. In 2021, this trade volume reached about $3.24 billion. Jordan’s imports from China gradually increased, and their value accelerated to $3.14 billion in the same year. China’s share of Jordanian imports has increased significantly over the past two decades, reaching over 15% in 2021 compared to just 3.5% two decades ago. As a result, China now ranks second on the list of countries exporting to Jordan. These imports consist of a large number of consumer and capital goods. There has been an increase in high-technology imports such as electronics, computers and medicines, as well as machinery and electrical appliances. Despite an increase, the value of Jordan’s exports to China remains limited. Thus, the trade balance between the two countries heavily favours China to a large extent. Chinese investments in Jordan have accelerated, with the value of signed agreements reaching $7 billion in 2015 across various factors, including water, traditional and renewable energy and railways. However, starting in 2018, China shifted its economic and investment focus towards the Middle East and North Africa (MENA) region, with a particular emphasis on Egypt, Saudi Arabia and the UAE. China also encountered significant challenges in the implementation of many projects and investments that were previously agreed upon. Furthermore, it is expected that the arbitration’s outcome will negatively impact the economic and investment ties between Jordan and China in the coming years. The amount of aid (grants and loans) provided by China to Jordan is relatively small.
Foreign Trade, Economic Relations, Jordan, China, Gravity Model