The Economic Cooperation Between Jordan and China; And Its Impact on The Middle East Area Financial Industry
The world today is a globalized one where different countries tend to work together for mutual benefit. These benefits can have a social standpoint or an economic backdrop. Countries that are developing in the modern world, like Jordan have to think about tariffs and taxes of various kinds and have to look for ways to minimise them to obtain more profit in the world market and build a stable economy in their country. The research done in this paper details the relationship between Jordan and the developed country China and how the relationship which is built on economic base benefits both the countries to be advanced.
There are, however, certain aspects of the relationship, which will bring about changes in other countries as well. China has an initiative of a belt, and a road with Israel and that can be affected by the newfound relationship between Jordan and China. Also, other countries of the Middle East like Iran and Israel, as well as Pakistan, have links, which are economical with Jordan where they make particle accelerator. These collaborations might be affected by the dynamics of the politics between the new relation formed, and the economic changes occurred.
The research work done in this paper greatly deals with the prospect of Jordan to improve and stabilize in term of economy. The country has improved mining and manufacturing industries. However, they lack in the department of infrastructure. The research done here will be able to portray what specific areas are getting affected by the political and religious turmoil that affect the country and the problems in term of economy faced by Jordan because of the inconvenience caused by the population of the country. The country has been able to secure relations with both the US and with China, but it has to understand too that only the securing of the silk route will not help the country come out of all its debts. The government of Jordan are linked intricately with the trades and business mergers happening in the economic sectors. Therefore, they have to step up and remove some barriers of trade which will enable economic prosperity for the country, and this paper tries to show how it can be done and what the future beholds.
Although the country Jordan is weathered by various conflicts, it still is gaining an advantageous position in regions of development, security, humanitarian, as well as reconstruction efforts in neighbouring countries. The surge in the financial standpoint will bring in foreign investments and will help the country come out of threats. China has already involved in large-scale investments with Jordan and will continue to do so to secure a harmonizing relation. However, these relations will affect the other countries of the Middle East both positively as well as negatively as the companies in Jordan are eager to expand their business prospects in the foreign markets already. This research will reflect on that as well along with the benefits gathered by Jordan.
Jordan is located in the Middle East and has developed a relationship with China in recent years. They had a well-developed relationship with each other about their investments . This new collaboration between Jordan and China had led to many changes, which has influenced the world immensely. There have been both positive and negative impact, which has affected both the Middle East and China. However, China and Jordan had a positive impact on each other, but the other Middle East countries did not get many benefits concerning this particular collaboration. According to Jordan, most of the products are imported from China, and the business is so enormous that China turns out to be the second-largest import partner of Jordan . Jordan’s main aim was to strengthen their ties in the context of an economy with China. Jordan is a small country, but they have been looking for all kinds of opportunities to seek investment from China so that they were able to solve the problem of their persisting economic imbalance.
The relationship between the two countries has developed over the years. The prime interest of Jordan has been to attract the Chinese investments for the development of the nation . Jordan has been well equipped with unexploited human potentials that could help in securing the base of the company. All Jordan required was an investor. After building up the collaboration with China, Jordan has been trying to attract the Chinese tourist and expertise for the technological and overall development of the country. The general feedback that has been obtained concerning this collaboration, it has been seen that both the countries have been benefitted and there is a positive response all over. Concerning Jordan, the Middle East has seen a lot of hope in the development of their structure and technology .
Figure 1: China’s Trade Sectors
Recent articles have mentioned the increasing role of China in the matters of Jordan. The matters, which include Chinese involvement, are the economic as well as the technological development of the country . Since China is one of the most technologically advanced countries in the world, the diplomatic, as well as economic ties with China is considered fruitful for the development and economic growth of Jordan. Joint actions are intended to be undertaken to collectively combat terrorism. It is to be mentioned in this context that China has been established to be the second largest commercial partner for Jordan. Therefore the importance of the role of China in the economic matters of Jordan can be evaluated from the aforementioned information . It may also be noted in this regards that the net trade exchange volume between both the countries has been established to be approximately $3 million in the year 2017 . The means to get more Chinese investment involved addressing the growth and development in the infrastructure and energy sectors of the country have been reviewed and evaluated.
Furthermore, the feedback relationship between the countries can be identified through their mutual decision to combat terrorism through increasing defence cooperation along with security measures . In addition to that, addressing regional crises within the countries can be tackled through the cooperation from one another. The regional issues such as the crises of Syria and Palestine are to be regarded as a priority and are to be regarded gravely in an attempt to establish and restore peace and stability in the Middle East area. It may be mentioned in this context, that the Foreign Minister of Jordan, Ayman Safadi has voiced his and Jordan’s support for initiatives developed by China, such as the Belt and Road initiative . This specific act may be regarded as a step towards the development and abetment of a bigger and greater Chinese impact on the cultural, political, and economic matters in regions of Jordan. The involvement of Jordan with China may lead to the Middle East following through, which may, in turn, prove beneficial for the Middle East area both politically as well as economically. In addition to that, despite the prevalence of two governments in the country of China, namely, The Republic of China (Taiwan) and the People’s Republic of China (China), the country had formulated a policy stating that there is only one country in 1972, in the Shanghai Communiqué. Jordan, on the other hand, follows and supports the One-China policy, which results in mutual respect between the countries .
The development of a cooperation system between China and Jordan is primarily dependent on the interaction and the support that ensues between both the countries. For instance, as formerly mentioned, the following of the One-China policy as well as the support for the Belts and Road initiative by Jordan can be regarded as major steps for the establishment of a significant cooperation system. Cooperation systems can be further identified when China had announced providing a $15 million support for the refugee situation in Jordan . In addition to that, China has been praising Jordan for hosting more than 1.3 million Syrian refugees. However, it may be stated in this regards that the support received by Jordan, is somehow implemented in aiding the other countries of the Middle East region. Hence, a consequential impact of the interactions between China and Jordan is noted with regards to the Middle East region as well.
The interactions can be evaluated from the successful participation and organisation of the China-Arab States Cooperation Forum also known as CASCF. In addition to that, China has agreed to meet and participate in the 2020 Forum meeting to take place in Jordan . Achievements are expected to come out of the engagement and cooperation observed between China and Jordan. Furthermore, an impact, regarding culture, economy, and commerce is expected to be the result of the cooperation between the countries. In addition to that, it may be stated in this context that the Foreign Minister of Jordan had mentioned that this cooperation might be considered and be viewed as a means to ending the existing as well as potential conflicts and crises . Furthermore, the cooperation is aimed at attaining development concerning prosperity, along with building stability and peace on international as well as regional levels.
Special emphasis is being recently laid on the cooperation between the countries to enhance the ‘historical’ ties between the Arab world and China. In addition to that, it has been indicated that Beijing’s support of the Two-state solution is an indication of the potential future of the Arab-Sino cooperation between the counties. Furthermore, it may be stated in this regards that the cooperation between Jordan and China is also primarily aimed at resolving certain regional conflicts, such as the Palestinian-Israeli conflict . Hence, the establishment of a free state of Palestine, establishing East Jerusalem as it capital is one of the major prevailing issues in the Middle East, which is aimed at being mitigated through the development of the better cooperative relationship with China. It is to be mentioned in this regards that decisions of Jordan regarding the support of China and the termination of the Palestinian-Israeli conflict, is chiefly done in compliance with the other existing counterparts of Jordan, among the other Middle Eastern countries.
The opening of a cultural centre in Amman, Jordan in 2017 is marked by the awareness regarding the cultural history of China. The cultural centre signifies the completion of 40 years of trade and other co-operational relationship between Jordan and China . It may be stated in this regards that a memorandum has been signed as a part of the proposed economic cooperation between the countries. Furthermore, the One Belt One Road policy is a part of the agreement between the countries. The policy primarily addresses the creation of a new route similar to the former silk route in China. The New Silk Trade route is aimed at being built through the Middle East and Central Asia, beginning from China extending to the greater markets of Europe, thereby expanding the scope for China’s economic growth . Furthermore, it may be taken into account that China’s relationship with Jordan, not only entails the benefits derived from the energy resources of the country. The other countries in the Middle East area are to be considered as an important part of China’s strategy for growth and expansion.
Figure 1: Jordan’s GDP
The location of the Jordan is adjacent to Syria, Egypt, Lebanon, Iraq, and Palestine, which possess a significant potential regarding market expansion and resources . However, the political unrest and instability among the aforementioned countries provide Jordan with the opportunity to act as a gateway for China to utilise the resources of the Middle East area, without getting directly involved in the political and economic unrest. Though the energy requirements of China remains unsatisfied through these Middle East countries, the expansion of the markets for the goods and products manufactured by China is an effective option. In addition to that, China’s increasing dependence on energy resources, namely oil, from the Middle East region, has led to the continuance of the trade and cooperative relationship between the countries . Hence, it may be stated that China has continued investments in resolving regional conflicts in the Middle East, as well as pursuing the active role in establishing peace and harmony among the countries of the Middle East has potential advantages, such as filling the dependence on oil for catering its economy and technological developments.
One of the primary issues that have been identified concerning the economic cooperation between Jordan and China can be attributed to the bilateral relationship with China as well as the USA. In addition to that, it is to be taken into account that the prime relationship of Jordan has been recognised to be with the USA. Hence, China has been observed to be keen on making investments to keep the economic and cooperative relationship going. Furthermore, it may be mentioned in this context that in addition to China’s requirement of energy resources, China has been noted to be requirements for wood and fish resources for maintaining the stability of its economy. Furthermore, the scope for expansion is essential for China, since it has reached a stage of market saturation, as a result of the overproduction of goods, such as textiles, automobiles, electronics, and telecommunications.
In addition to the above information, it has been noted that China has been involved in making atypical investments to maintain the requirements for its economic stability and to address the requirement of oil as a major energy resource. However, China has been able to maintain average GDP growth of 6.5% every year . Moreover, another factor, which is to be taken into account in this regards, is the role of US. The US currently demonstrates a decreasing trend in importing oil resources as well as military engagement in the Middle East region. Hence, China filling in the gap for Jordan may also lead to the sharing of the burden in establishing stability and peace among the politically unstable countries in the Middle East area. Therefore, it may be mentioned that the competition between US and China in the establishment of contrary provisions in infrastructure, economy, energy and defence, may be perceived as a threat to collaboration globally .
Though Jordan itself does not exhibit political instability, the other counterparts of Jordan, in the Middle East area demonstrate significant political unrest. Hence, despite China’s interest in establishing trade relationships with the counterparts, the challenges posed as a major threat. In addition to that, the combination of the geo-economic as well as the geopolitical factors, which have emerged because of the growing Arab revolts, act as a hurdle as well . The lack of subtle diplomacy may also be considered in this regards on behalf of China. Considering Jordan’s issues, one may consider the Syria crisis. In addition to that, the Israel-Palestine issue has also drawn a lot of interest from all over the world. However, it may be stated that the regional disputes and the political unrest prevailing in the Middle East attribute to major challenges regarding economic as well as cooperation in other regards.
Additionally, the marginalisation of the youth of Jordan had been an existing challenge, which ensured that Jordan had to accept financial aid and trade proposition from China . Moreover, it may be taken into account that the health, education as well as employment sectors have been suffering as an outcome of the political issues prevailing in the Middle East regions. However, with the involvement of China and the financial aid being provided for the development of these sectors, Jordan overcomes the challenges to a certain extent. Furthermore, Jordan’s policy challenges have been critical in the onset of the stiff relationship with its Middle East neighbours .
Figure 1: Industries in Jordan
However, the question remains, for how long is the cooperation going to exist? It is to be taken into account that the cooperation for economic progress and the development of other important sectors is undertaken because of mutual requirements. Both the countries require something, which the other has; therefore facilitating the beginning and sustenance of a mutually beneficial relationship based on cooperation . China is known to be one of the fastest growing economies in the world. The rapid urbanisation and development have led to the requirement for resources and other facilities on an unprecedented scale. It may be mentioned in this context that China’s requirement for oil and other energy resources stem from the rapid, large-scale urbanisation as well as globalisation. Meeting the demands of the economy requires the implementation of strategies and the formation of alliances and cooperation with other potentially beneficial countries, such as Jordan . In addition to that, the sector of automobile manufacture experiences a setback in China because of the massive pollution and requirement for energy resources, like oil. Furthermore, the onset of climate change has led China to consider other sources for gathering resources such as wood and fish, to sustain the economy. Moreover, the scarcity of water in China has also led to China exploring other options for maintaining and balancing the economic development and the fundamental sufficiency of the nation .
Though a major set of data and information have been collected from secondary sources as no challenges have been faced concerning the availability of the data. However, during this research, the researcher attempts to understand the perspective of Jordan and China in forging an atypical alliance leading to economic cooperation . It is found to be important to evaluate China’s strategies and policies for economic development. However, though the most important policies of China has been identified and assessed in this research, a detailed description of the policies have been found to be available. Additionally, the researcher had faced significant difficulties while gathering primary data, through surveys and interviews. Making appointments with important personalities, such as the spokesperson for the Forum responsible for the economic cooperation between Jordan and China have been found to be quite challenging . In addition to that, gathering significant and relevant information could not be done.
1.3 Research aim and objectives
The primary aim of the research is to identify and explore the extent of economic cooperation between China and Jordan and the impact it has on the Middle East region. The secondary research objectives have been identified as follows:
- To evaluate the contribution of China in facilitating economic progress of Jordan
- To identify the challenges that the countries face with regards to the development of economic cooperation
- To explore and study the policies formulated by China and Jordan and how the support from each other enables economic cooperation and development
- To recognise the impact of economic cooperation between Jordan and China on the countries of the Middle East area
- To identify the sectors which China actively participates and invests in Jordan
- To evaluate the requirements of Jordan to gain the support of China
- To assess the resource requirements and other potential aspects for China making generous investments in Jordan
The research questions formulated for carrying out this research are as follows:
- What are the contributions of China in facilitating economic progress of Jordan?
- What are the challenges that the countries face concerning the development of economic cooperation?
- How do the policies formulated by China and Jordan pose as a drawback?
- How the support from each other enables economic cooperation and development?
- What is the impact of economic cooperation between Jordan and China on the countries of the Middle East area?
- Which are the sectors, which China actively participates and invests in Jordan?
- What are the essential requirements of Jordan to gain the support of China?
- What are the resource requirements and other potential aspects for China making generous investments in Jordan?
The gaps in carrying out the research have been identified as the lack of sufficient information concerning the policies and strategies of China. In addition to that, a detailed study could have been performed on the impact of the economic cooperation between Jordan and China on the Middle East region. Since this research focuses primarily on the causes and impact of the cooperation between Jordan and China, a significant focus on the Middle East countries have not been taken into account as a result.
Jordan is a developing country, which exhibits signs of improvement over time. However, it is not easy for countries like Jordan to achieve the standards of being a developed country, if it does not adopt some changes concerning the business and economic relationships . It was believed earlier that if foreign investors or competitors were to set up business in a country, then it would harm the domestic business policies of that country. That is the reason for the several barriers in a trade that was hampering the business possibilities and the economic structures of countries like Jordan. Countries like Jordan that are emerging in the economic prospects need proper infrastructures to establish a firm socio-economic hold and therefore, help the population of the country to thrive in a standard way . To achieve this goal, they would have to let go of their backdated policies of keeping the economy closed and join the world market.
Jordan and certain other Middle Eastern states have been able to initiate new policies, which will enhance cooperative and collaborative agreements with other nations of the world for a hike in the rate of the economy. Being a country that is still developing, Jordan lacks some ways, like proper infrastructure, skills, technology, education and many more . However, cooperating with foreign and developed nations like China will help the country to exchange these skills and talents have an improved set of financial knowledge, entrepreneurial skills of both men as well as women, transfer of technology, industry expertise and the production as well as manufacturing processes.
This paper, therefore, aims to establish a proper idea about the country Jordan and its economic relations with China . It not only details the relationship of Jordan with a developed country but also shows the geographic, economic, topographic, demographic, and political aspects of the country, which shows how these conditions, shape the economic state of the nation in the present and how it will continue to do so in the future. This paper states how the country lacks infrastructure, and with further wrong decisions and steps, Jordan went into greater debts and struggled hard to come out of it. Although the country has been taking up measures to overcome the problematic economic situation, there is still much to do. With the collaboration of a developed country like China, Jordan will be able to develop in the fields of infrastructure projects, manufacturing, as well as agriculture . China’s expansion into developing countries with greater investments develops the relationship between the two nations. This paper details this economic relation at great lengths and provides in-depth details of how the link is acting as a beneficial point for Jordan as well as helping the Middle East too for economic uplift. Companies from China-owned industries in Jordan, which helped its immense growth while attracting foreign investors into the developing the country were growing as well. Therefore, further down the paper, there are topics discussed on this point, and the objectives of the paper are to analyse fully the effect of the relationship formed between Jordan and China .
Jordan is a small country, which belongs to the Hashemite Kingdom and has very few natural resources. This country plays a very important role in the struggle for power, which has been a very crucial problem recently in the Middle East. Jordan is in a strategic location; it is situated between the crossroads of the Christians, Muslims, and Jews. Jordan is considered a Holy Land. Several researchers who have discussed the significance of Jordan’s strategic location  have written many articles. This location has brought this nation great success. Jordan has been known to have an ally with the United States and Egypt. Jordan is the second country to attain peace with Israel. This country has always been very successful in almost everything, and their approach has always been strategic. This Hashemite Kingdom was the first country to emerge out of the division of the Middle East of post-First World War by France and Britain . This country has had the same leader since 1999. King Abdullah II has been the leader since then and has been helping the country to move towards success efficiently. King Abdullah II has been vested with extensive powers. He has the authority to appoint the government, the King approves the legislation, and he has the ultimate authority to dissolve the parliament as well. Jordan has been seeing a great political turmoil over the past few years. The King has appointed a series of new Prime ministers to look after the changing conditions concerning the uprising of Tunisia . The rise of Tunisia led to a lot of political reform in Arab countries. The new political reforms that have developed in the Arab countries had a huge impact on Jordan. The increase in the income tax and the daily living cost lead to a regular street protest in Jordan as well even though they are much more peaceful than any other Arab countries. The newly appointed Prime Ministers by King Abdullah II have been overseeing the problem since then and have been trying their best to resolve the issue .  pointed out that the development of the new treaty regarding the economical relation between Jordan and China the issues regarding the rise of daily living costs were effectively reduced. Many new opportunities for jobs were introduced after the introduction of the investment in China in the Jordan industries. China as well found it advantageous only because of its strategic positioning between the three countries . The best thing about Jordan ion the recent times is that they have made a peace treaty with Israel other than Egypt. This helped to develop their economic status effectually. China also has been developing the relationship with Jordan because of its location.
Figure 1: Employment Options in the Middle East
The researchers have been focusing the researches on Jordan sharing its borders with five different countries- Israel, Syria, Saudi Arabia, Iraq, and Palestine. Jordan has been known since the biblical times to conquer many conquests. Jordan has been since then being successful in regards to the peace negotiations concerning its neighbours. Jordan is a country which has very less economy and natural resources . Since then they have been relying on the foreign countries to get sufficient resources for their survival. They developed many economic reforms concerning find a resolution for the unemployment and the supply of the daily surviving resource. Jordan suffered immensely after the gas pipeline attack on Egypt. The export to gas from Egypt to Jordan was jeopardized severely. Jordan is located in such a strategic way among the countries they have been facing many disasters if any of the surrounding states are affected. The article by  discusses the impact of the different Middle East conflicts on Jordan. The crisis about the Syrian refugees influenced Jordan vastly . The economy of Jordan was in great crisis due to this. This article focused on the study of Syrian refugees and the help received by them by the Jordanians. The Jordan government solely concentrated on helping and hosting the Syrian refugees. They did not interfere with the Syrian government and their conflict within. Jordan already has been in a very crucial state for a very long time but interfering in instability of Syria who destroys them drastically . Jordan faced a huge problem regarding their economy as they faced immense pressure in providing aid to the refugees. They have been bound to upgrade the infrastructure to support the refugees. As a result, it turned out as a great opportunity for the Jordanians because they ended up developing the condition of the nation . They received a lot of assistance from different foreign countries to help them cope with the crisis of the Syria refugee situation. As they were affected by the trade routes, they were unable to import many goods from that route. Their strategic position affects them drastically if any of the surrounding countries are impacted by any kind of crisis. Jordan is completely dependent on its surroundings; Jordan had developed an ally with the United States but to carry on any kind of trade they need to have the permission of its neighbours or else they will be in complete vain in carrying on any trade or receive any kind of assistance with anyone . With the improvement of Jordan, the surrounding countries have also been benefited greatly. The ally with China recently has been very beneficial as most of the foreign products are imported from China, and as China is a growing country, they will be getting great assistance for the development of all the infrastructure, industries and so on. The Syrian refugees indeed created huge pressure on Jordan, but Jordan was able to improve their communities and their infrastructure. For Jordan, the Syrian refugees became a great source of foreign investment as has been noted by this article . The benefits that were received by Jordan that had a positive impact on the public finances, as well as the foreign reserves, have been studied.
In the article by Held, 2018 the different conflicts in the Middle East has been studied, and their impact on Jordan has been analysed . A narrative-based country-case study analysis the different war episodes that took place were analyzed and examined. These conflicts had a huge impact on the economy of Jordan. These conflicts that took place in the Middle East had an enormous influence on the higher inflation, in the growth of the economy, loss of reserves, deficits of fiscal and current account and the whole financial system of Jordan was weakened immensely. The conflicts weakened the whole country immensely and left them, devastated. The recovery after the conflict solely depended on the development of the country’s institutional and economical structure. Any of the neighbouring countries, which had a conflict Jordan, has always been affected even if they were not involved in the conflict . The duration of the war mattered a lot. The scope for any kind of improvement has been weakened greatly. The economic status was determined by the initial status of the country. This article also explored the unemployment issues in Jordan, which has been an effect of the neighbouring countries as well. It has been found out that Jordan has been pursuing different reforms to keep the country from falling apart completely. The market conditions have been analyzed in this particular article, which determined that from the past 10 years Jordan has been developing the reforms related to health, education, liberalization, and privatization. They developed a new social protection service against the untold attacks or the influences they have been facing due to the conflicts in the neighbouring countries. The main problem that they have been facing for being situated in the centre is that they never had any kind of privacy . Any of the matters that have been going on has always been interrupted by the neighbouring states. Their economy and development have always been at stake due to their strategic placement. To improve the present market conditions, Jordan has been mainly focusing on the investments that are being made from the foreign countries like China and the United States. These two countries have been a huge support regarding the different conflicts that they have faced mainly in the case of Iraq and Syria. These two countries have been facing with a lot of issues and Jordan has been helping the refugees from these two countries immensely .
The adverse regional developments in the crisis about Iraq and Syria turned out to be a huge shock for the Jordan country. Scholars in their research about the impact of Iraq and Syria war on Jordan  have elaborately discussed this. As discussed earlier in other articles, this article also studied the disruption in the trade routes and the unpredictable influx of refugees. This resulted in losing all the investors and the lowering of the flow of tourism. This country’s initial source of income has always been the tourists who visit Jordan. Aft6er this war the tourists do not visit Jordan even though they are not a part of the war. The social fabric of the country had been immensely impacted by the refugee influx from Syria. Jordan has been mostly relying on the economies received from the Gulf countries . It has been observed that the economy of Jordan has been sluggish and two years in a row their economy has fallen from 2.4 per cent to 2 per cent in 2015 and 2016 respectively. The flow of tourism has fallen since then, but there has been expectancy that there will be an increase in the tourism industry. This article also explores the alliances with the different countries. Jordan has been focusing since then on the Fiscal consolidation policies . The main issue that they faced is the rate of unemployment as they do not have any resources of their own which is a great issue regarding employing the unemployed. The conflict, which had arisen between the Israel and Palestine countries, influenced the Jordan economy as well. Researchers have focused on how the Iraq and Syria war helped Jordan tap on their unexplored resources. This somehow turned out to be an advantage for the country . This article mostly focused on the Syria crisis. Iraq has always been through a political instability. The refugees who were fleeing to Jordan as well as from Syria became a huge concern. However, the kingdom somehow turned that into an advantage to bring in a never found social and economic stability. The Iraqi Business Council that is present in Jordan did not rule out the 680-kilometre petrol pump line, which links Iraq and Jordan . It leads to a huge security deficit in Jordan. This project has been a very important project ever since as Jordan has been receiving the natural resources from them effectively. The crude oil supply decreased from Iraq to Jordan in 2013, which had a coincidence with armed conflict in the western part of Iraq. Due to all these conflicts, Jordan suffered a huge loss in the crude oil supply department.
Figure 2: Industries in Jordan
The main default that can be raised is based on the competition that the Jordanians faced due to the increasing refugees . Jordan is already a low educated country by its own, and as a result, it has been suffering immensely regarding the employment ground where the scope is extremely limited, and in that space, the Syrians were also competing for the employment. The article has been focusing on the different problems that have been raised due to the Middle East conflicts . Due to these different conflicts, the security of the country has been compromised, and they have no control in stopping the refugees from entering Jordan. This has immensely affected the flow of income into the nation . The Tourism flow has decreased and based on that researchers have done a study as to the different reason for this decrease in Tourism. The main reason that was discovered after conducting a qualitative study was that there was no security in the nation due to the war that has been taking place in the neighbouring states. Tourism has been considered as the second largest private sector employer regarding the unemployed people in Jordan, and this Tourism sector is also a large exporting sector as well for Jordan. The instable situation has been the main issue in the decrease of the tourism sector . Jordan attracts tourists mostly because of its archaeological sites which includes one of the Seven Wonders of the World, i.e. Petra. Jordan also has a portion of the Dead Sea which attracts the tourists extensively. However, the constant socio-economic turmoil in the Middle East has met with a constant decrease in the Tourism Revenue.
The Graph above describes the decrease in the Tourism industry in Jordan on a yearly basis. It is noticeable that since 2011 tourism has extensively decreased in Jordan . In the year 2016, they had suffered a huge loss regarding the Tourism revenue.
The fleeing Syrian population to Jordan also had a positive impact on Jordan.  In his article , has discussed the bittersweet opportunity provided to Jordan due to the Syrian refugees. The studies that have been conducted in this article have been seen that investors who were doing business with Syria are interested in investing in Jordan. The Jordan Investment Board has reported that in the year 2012 there was an investment of $161m. These investments were somehow turning the luck of the Jordanians . The small enterprises infiltrated the Jordan business sectors and scattered themselves all over the place. There was an inclusion of the small industries regarding the manufacturing sectors which consisted of the textile industries, confectioners, and drink-makers. These small investments slowly turned out to be beneficial for the Jordan country, which was helping eradicating unemployment. The major focus of this article has been on the trade deal of Jordan with the European Union. This deal helped the Kingdom to have flexible rule and regulations regarding 52 groups of products, which are manufactured in the economic zones. These specific zones had reduced government regulations and fewer taxes in comparison to the rest of the Jordan economy . This deal helped Jordan to export 70 per cent of the productions, which were non-local tariff-free to the European markets. This deal solved a lot of issues regarding the refugee crisis that they were facing for a couple of years. This deal, however, was finalized with one condition that the labour that was involved in the production of these products needed to be inclusive of at least 15 per cent of the Syrian refugees. After the employment, 200,000 Syrian refugees the rules were relaxed further and lead to the growth to the other parts of the Jordan economy .
Jordan is known as the Hashemite Kingdom of Jordan and is a nation amongst countries of Arabia. It is a country where the Muslim population is more than the people of other religions are. The World Bank calls Jordan as a country, which has an income at an upper middle level. However, the population of the country of people who lives below the line of national poverty is 14.4%, and this percentage has not changed for a long time . Almost a third of the population of Jordan came under the poverty line, which is called transient poverty. The country saw a gradual rise in the GDP, which was 8% of $39.453 billion from the year 2004 to the year 2008. There was an increase in the level of GDP accumulation and the percentage changed as a hike of 2.6% has been added to the GDP rise. The economy of the country has been rising and falling for years, and the sudden shifts in the economic standards affect the people of the country. Jordan has been identified to be one of the smallest economies in this world, however, because of the high rate of poverty as well as unemployment makes the population of the country suffer in a very bad state .
The economy of the country is diverse including finance and trade, public utilities, communication and transportation, construction and finally mining . Jordan is a part of the World Trade Organization and is included in the United States Free Trade Agreement. It is the first country in Arab to do so to help the economic condition of the people. The Great Recession as well as the depression of the Arab Spring has damaged trade in Jordan and affected the growth of the GDP in sectors like tourism, industry, and construction, which have to lead to the workforce in the public sector to bloat. The pipelines producing natural gases were attacked multiple times by the affiliates of the Islamic State, and the country had to involve billions in losses as it was used as a substitute for oils of heavy fuel, which are expensive and were used to generate electricity . The country faces instability in various regions due to which the economy from tourism has reduced substantially. The country has accumulated loans for millions of dollars because of the increase in the expenditure on the military and the decrease in the investment by foreign parties, the Egyptian pipelines are attacked on a regular basis, and the trade between Syria and Iraq have collapsed already as the country host the refugees coming from Syria. The country has been under huge debts for years, and it has reached as high as $35.1 billion, which represents about 93% of the GDP of Jordan. As the World Bank has identified it, hosting the refugees from Syria have amounted to $2.5 billion, the GDP of Jordan has grown to 6%, and the government revenue has increased by 25%. Jordan provides for most of the money used here while the aids received from foreign countries are very low . The country has taken measures to reduce the debt-to-GDP ratio from such a high level to 77% by the end of the year 2021; however, it has been able to stop the debt from rising very high and has been successful to limit it to 95%.
Figure 1: Shell Mining Industry
Amongst all these difficulties too, the population of Jordan is getting an education and improvement in various fields, which are attracting investors from a foreign land, and they are putting in the money which is helping the country as a whole. There are numbers of skilled employees or workers who have received proper education in different regions of Jordan in ICT sectors . The industry in that aspect is growing, as the education they are receiving is modern in its form. With the help of the foreign investors, the country has been able to export the workforce of the land to the Persian Gulf nations as well. Funds were transferred, and the remittance flow became rapid, which slowly became a source that provided funding from the foreign parties.
The industrial sectors in Jordan, which are the most prominent, and help in the economic stability of the country are quarrying and mining as well as the manufacturing subsectors. The mining comprises mostly the mining of potash and phosphate and the production of the industrial materials like refined petroleum, fertilizers, as well as cement . The country Jordan is a nation where the knowledge of the economy is emerging on a regular basis. However, as stated above there are certain political and social factors obstructing the development of the country on an economical font as well which has to be mitigated soon. There are other factors as well as the scarcity of water and the supply of water at different regions of the nation. The company completely relies on the import of oils from other nations for the production of energy and the instability amongst different regions is a rising issue as well. The topographical conditions do not help either, and the land of Jordan is arable with a limited amount of water which is supplied .
The country is one, which is trying hard and developing in the best way possible but requires further help for the ultimate achievement of the goals. The agricultural lands are prone to severe disasters as the country faces severe cyclic droughts as well as frosts, which are completely unpredictable. The crisis in the economy is due to some political problems and threatens the stability of politics further down the road . The hike of taxes on the regular food items such as bread to lessen the amount of deficit of $700 million is a reason, which causes the political instability throughout the land. The countries in the Middle East had the potential to a great level for the rise in the economic standards and growth in the nationwide economy. However, they lack the proper education and the exact infrastructure, which is required to bring about certain changes in the economic background. The exposure, which is required to become a country with the economy growing at the fastest level in the world, is not present in the countries of the Middle East, both due to the demographic and topographic reasons and political reasons as well . The labours, which the Middle Eastern countries provide have very low rates, which do not help much to improve the economic stance of the nation. The countries, posses some qualities, which can be utilised further, down the road to bring economic stability in and around the nations of the Middle East. The middle-class people and the families living in these states tend to provide proper education to their younger generation so that in the future they can be part if different industries which will be developed by various nations all over the world . The amount of wealth, which is accumulated on a regular basis in the Middle Eastern states, can be made into projects, which will bring about great revenues when considered to be invested with foreign parties like China.
The states of the Middle East and the country Jordan can decide to start a relationship of business with foreign investors, which will be beneficial for both the nations involved and most importantly will help Jordan come out of the huge debts, which it faces. Jordan can also be involved in conducting trade and business with other countries of the Middle East. It will reflect on the economic conditions of Jordan. The international trade can help Jordan build an improved economic standard, condition .T his will help the country to manufacture and produce products, and goods, which are technologically advanced and are excellent based on their qualities, because although Jordan does not have proper infrastructure, the younger generations are better in the fields of ICT. These individuals along with other smarter individuals and proper structure can help produce better items and gain more profit for the country as a whole. These products of quality, which will be produced in the Middle East, will be available easily and at a lower price for the population of these regions. The standard of living will gradually increase as the cost of living will fall, which will also lessen the excessive taxes on everyday food items .
Figure 2: Biodiversity in Jordan
Although this paper greatly deals with the association of Jordan with China and the economic bond between the two which is helping the economic standard of Jordan, this section mostly covers the country Jordan and the Middle Eastern states along with the difficulties and prospects they provide for a change of economy in their regions . However, Jordan, being a country that is developing yet, posses few risks and qualities, which can be seen in other developing countries as well, and which becomes the reason that hinders the rapid industrial and economic development of a region. The states and the officials are corrupt and get involved in religious and political troubles on a regular basis, which affects the improvement of the country very much. There is also the issue of the infrastructure of the nation being poor which has already been stated above, as the proper ideals and people promoting proper ideologies are absent in these parts of the world . This is where help from the foreign nations are required to have a better grasp of technical tactics. While there is a huge deficiency of skilled workers and labours, there is also the problem of the labours being engaged with the very low amount of money or the investment is done for them is almost negligible. There is political as well as religious instability with the Islamic foundations as well as the issue of the Syrian refugees immigrating on a regular basis to Jordan for help. The intellectual rights of the people are neglected as well, and there is a possibility of the projects and plans were destroyed and damaged due to sudden outbursts or protests by the population of the country .
The best way to deal with the economic and social issues is to invest in a positive way in the younger generation of the country. It not only is required to fulfil the obligations of personal rights but also is also important to bring huge changes and variations in the social front of the nation. As a result, it will improve the economical aspects of the country . The country needs to bring an approach which will be multi-dimensional as well as innovative enough to understand and identify the needs of the younger generation based on various situations like education, civic participation, health and employment. The generation of the youth to gain socio-economic progress is the future trend which the country needs to adopt, and the Middle Eastern states have to follow its example if they need to improve as well . The youth forms an asset, which is formidable for the economic stability of Jordan and the Middle Eastern states as well. Other points the two sides agreed on include holding regular meetings between the Jordanian and Chinese foreign ministries at the level of leaders or high-ranking officials, intensifying communication between both countries’ governments and legislative institutions, and enhancing relations at local levels . The level of education has to be of quality and of proper relevance too and not only have high access. The population of Jordan, which makes up the younger generation neither have proper education nor employment nor not even current training. This affects the younger women more than it affects, the younger men. The people who work either have menial jobs are paid the minimum amount of money. The country needs to adopt a national strategy of youth where these young people will be the leaders of the future world, which will be economically sustainable and will have the proper potential to be economically stable. Jordan provides microfinance loans and self-employment options to women entrepreneurs, and they can help expand the economy with the development of different smaller firms .
The country Jordan, as stated already does not have an abundance of natural resources, which is the case for countries like Saudi Arabia, Iraq, Iran, United Arab Emirates, and many more. It lacks in that part but makes up for the lacking aspects by being an economically attractive crossroad for foreign countries . Jordan has been providing refuge to hundreds and thousands of people fleeing their homelands for terrorist attacks. It has earlier provided refuge to the Palestinian people and has helped the Syrian refugees to tale shelter in the nation as well in the current times. It had also provided refuge to the Iraqi refugees when America invaded their homeland, and in all this, the country gained influx. There was a drop in the g supplies from the country Egypt, which led to an increase in the fiscal deficit of Jordan. On the 23rd of May in the year 2013, the World Bank declared to provide a package for about 150 million USD, to support the government of the country Jordan, so that they can provide aid to the people of Syria. The impact of the civil war in Syria has been terrible and effective the lives of millions of people due to, the people have fled the country and have taken refuge in Jordan . However, the population and economic aspects of Jordan came under a lot of pressure due to the influx in the population of refugees.
The trade sector of Jordan is growing rapidly and will have further development in the future years to come. In the year 2010, there was an increase in the trade from the Greater Arab Trade Zone. The trading, which was carried on was a two-way process, from Jordan and to Jordan. Exports from Iraq were a part of the trade as well as the imports from Saudi Arabia regarding crude oil . These made it possible to increase the amount of export to the North America Free Trade Agreement, like the US, while there was a decrease in the level and value of imports from the area. Due to increase in the trade and commerce of the country, Jordan was able to employ workers from foreign countries as well. Workers in huge numbers joined the Qualified Industrial Zones. These workers work in various projects of joint sectors between Jordan, America, and Israel .
Figure 3: Economy Index of Jordan
Jordan portrays an open market and a free economy, which makes it a hub for commercial reformation for the foreign nations. After Egypt, Jordan acts as the best possible location for investment. The investments can be made on Middle Eastern states for the developed countries like China and US . These economic co-operations like the building of the Silk Route and the Belt and Road Initiative, have opened up options for the foreign countries to explore the Middle Eastern nations and have also allowed the other states of the Middle East to gain economically as well as socially from the relationships formed. Therefore, one can say that the effect of the economic influx in Jordan has contributed in the chance for development for the other countries. However, because all nations care for their benefits first, the nations have always to be careful of their investment, or there is a chance for them getting robbed of their resources .
In the Middle, East Jordan can be considered as one of the smallest economies. This has mostly happened due to the lack of natural resources. Jordan does not have any kind of natural resources like oil, water or any other kind of natural resources. They have always been dependent on foreign investments to run their kingdom. They went through a significant global financial crisis, which resulted in a complete deterioration of the regional situation . Moreover, in 2011 the influx of the refugees from Syria made their lives much more difficult than they envisioned it to be. These issues made the government of Jordan to take up decisions like making reforms, which would help them grow further. The structural issues which were there has been underlying in Jordan obstructed the growth of the kingdom immensely. Jordan has been encircled with a lot of challenges like hosting the Syrian refugees, then the increasing regional conflict and instability . These affected the Jordan economy immensely but the reforms that the government created if enacted then the potential of the economic situation can be improved.  has observed it in the article, 2018 has been observed that the GDP before 2008 in Jordan was quite impressive where an annual growth was noticed 8 per cent increase was noticed for four consecutive years. The growth drop was noticed in the year 2011 where there was a 2.6 per cent drop, and that was mainly due to the refugee influx . Jordan started losing all the foreign investors due to this refugee crisis. However, they received much help regarding the refugee influx, which presently has been helping the pertaining economic crisis in Jordan. Due to these regional conflicts, the tourism industry has been suffering a lot, which lead to many issues. However, the incorporation of the China investment is turning out to be a blessing for the whole Kingdom . One of the greatest factors was employment and education. Their education system is very weak; there are not many people who enrol for higher education and even if they do they are not employed. It has been studied that there are about 90,000 enrolments every year in the universities, but according to the data, there is around 16 per cent of graduates who are unemployed . This employment crisis developed mostly for the settlement of industries, which were informal but not formal sectors with permanent jobs. Therefore, the employment that was received was temporary. However, after the refugee crisis, the job opportunities have improved. The responses from the foreign countries have improved. China in this aspect has been of great help as they have introduced the Silk Route Project, which helped Jordan immensely . They have been helping Jordan economically by investing in the country. The domestic infrastructure needs funding to proceed, and along with that, the fiscal and structural improved has also been improved due to the new reforms.
The article stated by , has elaborated the growth of technology in Jordan and Middle East countries. The use of better technology at a lower cost to generate commodity is significant. The companies in China has given an opportunity to Jordan in the field of providing the new and better technological way in developing industries in the Middle East region . This has impacted the growth of the economy and wealth in Jordan. The basic aspect is to provide a better way of living in the modern world. The production of a good quality product with a faster and better technology is done as well. This has influenced the price of the product in the lower rate. The manufacturing of better quality product has impacted the trading with a cheaper rate of price. The Middle East countries have started trading with Jordan as they are getting a good quality product at a cheaper rate. This has led to a better standard of living in Jordan and Middle East countries . The sharing of technological knowledge has spread in Jordan. This has a great impact on developing ideas concerning the technological field in Jordan, and it has helped in generating good quality commodities. This has reflected the economic and trading improvement in Jordan and the other countries in the Middle East region. The relation between the two countries China and Jordan has impacted a great effect on the political and economic structure of the Middle East . The Silk Road project has turned out to be a lifesaving project for the Middle East countries and so for Jordan.
The economic cooperation that has been developed between China and Jordan has had a lot of impact on both countries. China has been a very flowing country, and they have been flourishing ever since, but Jordan had a great impact due to this development of the cooperation. Due to this economic cooperation, the opportunities for the investments increased for both countries equivalently . China has been of great help for Jordan as they have been providing aid on the lack of natural resources crisis as well as the refugee crisis. It has been mentioned in his article the developments that have been noticed in Jordan due to the development of this cooperation . This article studied the pattern of increasing tourists due to the involvement of China . China has made many considerable contributions in several fields in Jordan like in the field of tourism, phosphate, energy supply, increasing of different sources of transportation and so on. Due to these developments, the flow of tourism has extensively developed over the last few years. China’s development of the new Silk Road Project was with the sole intention of diversifying the energy sources in the Arabian Gulf countries . Jordan stood out to be a prime centre for the implementation of the project objectives. The Middle East has been granting help from China because they found out that China and Europe have been bending on reviving the Silk Route and the trade that was very active in the ancient time. The Silk Route has been the prime source of resources for the Middle East countries from the ancient times and due to the involvement of the United States the trading cross the Silk Route was stalled . However, due to this new reformation between the two countries, they have benefitted equally. China has also received a lot of benefits like products from Jordan and developing new ideas in a fresh field. China’s main aim of investment in the Gulf countries has been the gas energy accumulation. Jordan is the centre of the Gulf Countries, which makes Jordan the most convenient place. If China can make Jordan an ally, then they can make Israel an ally as well and so with the other countries because they are at peace with the other countries . Due to the deal of economic cooperation between the two countries, there has been a possible influence that the war between Palestine and Israel can be subdued. The conflicts, death, and suffering that have been faced by these Jordanians have been relived due to this cooperation deal with China . The deal was not only based on the economy but also on political cooperation, solving cultural matters and so on. The chain has been a great investment in Jordan as mentioned earlier because they have increased their aid to $70m to develop the priority projects, which have been pending due to the lack of investment. China’s support has led to a great improvement as they have been improving the production quality . Jordan has always been a great producer of things, and China has helped them to magnify the whole manufacturing industry.
Figure 1: Population of Jordan
The impact of generating the silk route has development in a different aspect of the economy of Jordan and China. This article is stated by  that this development has been influencing the growth of economy and relation between both the countries . This development has helped China to connect with the countries in the Middle East and Northern Africa. This development helped in generating a better infrastructure in the Middle East countries. The growth in the field of technology and generation of employment in this belt of the world has been enormous. The increase of employment has generated the low rate of poverty in the Middle East countries . The basic impact is affected on the political and economic involvement of both the countries. This project has led to the growth of trade with various countries around the globe. The growth of trade route has influenced to meet the flow of economy in the Middle East region. The increasing of the population has generated in getting labour at lower cost in Jordan. The impact of generating labour from the middle-class families in Jordan helped in increasing the economic structure of the country . The education is provided to the youth of the country to generate in developing industries in Jordan. The basic impact is to utilise the population correctly in developing the economic structure of Jordan and the countries in the Middle East. The original goal of the project is to coordinate a better relationship between both the countries and to connect the trade route in the Middle East region.
It has discussed in their article that how this has improved the Jordan economy through Technical cooperation, development cooperation along with economic cooperation . The development initiative that was taken by both the countries helped Jordan to construct different roads, which amounted to $31.6m . This improved the trade relation between the two countries. From the year of 1999 to 2016, Chain has provided Jordan with grants and loans of $225. According to this particular report, it has been stated in this article that China has always been a positive influence on Jordan in the past and aims to be so in the future . It has been stated in the studies that a mall called Chinese Dragon Mall has been developed in the capital of Jordan to sale only Chinese products in that mall. The building costs near about $20 million. The mall consisted of all kinds of essential products like those that the products required for the furnishing of the homes, different kinds of equipment required for the establishments of any office . There are other materials as well which are found in the mall as the materials required for building, then varied kind of electronics, fashion items and so on. It has been seen that China has over taken Jordan vastly and has been dominating up to a certain limit. However, this domination cannot be avoided because with their cooperation the infrastructures of Jordan were being maintained with efficiency than they were before. Half have also reduced the problem of unemployment. Chains have been setting up various retail firms, which have been helping them to develop their economic growth extensively . One of the biggest projects that have been established in Jordan by China is the manufacturing of LED lights, which have been helping Jordan to save their electricity by 70 per cent. Jordan has been using those streetlights to save the electricity, and the contract for using these lights has been done with the different municipalities in Jordan. However, the major investment made by China on Jordan has been the 1.6-billion-dollar investment in the extraction of oil shale, which would help in the production of electricity. China has also invested in the nuclear reactor project which made the infrastructures strong from with which was not the scene before. All of these investments have been possible only due to the eagerness of both countries in developing economic cooperation between each other . Due these Jordan has newly defined their fiscal and legal frameworks for their investors like China. Jordan’s initial aim has always been to stabilize the economic status of the Middle East countries by branding the economy with the untapped human resources in Jordan. Jordan has been planning to use China’s economic foothold in Jordan as an immense political advantage.
The current economic cooperation between Jordan and China can be recognised through the several activities undertaken as a part of building cooperation between the countries . For instance, China offering to contribute to Jordan’s development through funding the infrastructure as well as the economic development of the country can be regarded as a major step towards building cooperation. In addition to that, it may be stated in this context that Jordan as a show of good faith and alliance is supporting several initiatives by China. According to Pan Weifang, the Chinese ambassador to Jordan, the current relationship between China and Jordan, the cooperation has been growing rapidly and vastly, and a major escalation in the progress of the countries can be observed . Furthermore, the Chinese ambassador mentions that role of China in implementing various beneficial strategies policies and initiatives in China, which had aided the country in progress with regards to the water, energy, economic, infrastructure and health sectors.
In addition to that, the talks of the establishment of a Sino-Jordanian University have been speculated by several spokespersons for the respective governments. Moreover, the construction of a cultural centre to develop the Chinese language and culture is underway . Furthermore, the awareness of the language among the Jordan population is regarded as crucial for the plans for the growth and development of the country. Additionally, the investments made by China are on the rise as China views Jordan as a potential doorway to the Middle East region and the requirement of oil as a source of energy is vital for the country . Furthermore, Jordan supporting China’s infrastructure developing strategies in the country entails the building of a New Silk route, which may be fruitful in sustaining the economy of China. In addition to that, according to several reports in the year 2016, China has been established to be the second largest trade partner of Jordan. Hence, China may essentially be regarded as one of the key factors for the economic cooperation and success of Jordan. Figure 1 represents the investments made by China in the Middle East and the North African regions from the years 2005 to 2018. It is evident from the figure that Jordan is noted to have received a significant amount of contribution from China, amounting to approximately to $5.8 billion .
Figure 1: Investments of China from 2005-2018
It may be mentioned in this context that the Director of the Asian Division at the Ministry of Foreign Affairs had formerly stated that Jordan exhibits an atypical behaviour in regards to boost the cooperation with China for the rapid progress and development of the economy and infrastructure of the country. In addition to that, it may be mentioned in this regards that various measures have been considered by the Jordanian government to eliminate the obstacles or hindrances that may pose as a threat to the growing economic cooperation between the countries . Regardless, it is to be taken into account there multiple areas have been identified wherein the cooperation between the countries may boom, and the potential for advancement in the relationships is demonstrated. Considering the past few years, consistent development and growth in the cooperation between China and Jordan can be observed. For instance, the strategic partnership agreement signed between the countries in the year 2015 can be regarded as one of the key examples of the facilitation of the economic cooperation between Jordan and China .
The agreement signed in Beijing, between the Chinese President Xi Jinping and His Majesty King Abdullah of Jordan had taken various matters of regional as well as international concerns into account for the strategic partnership agreement. After the signing of the agreement, a joint statement had been issued on behalf of both the countries, namely the People’s Republic of China and the Hashemite Kingdom of Jordan, stating that the countries were now involved in undertaking various actions for the betterment of the states together . Furthermore, it may be mentioned that the strategic alliance had highlighted multiple issues, which had become not only regional but also international issues as well. Challenges for combating terrorism, the Syrian refugee crisis, the issues at Palestine and more had been taken into account. It was established on both accords that the agreement had signified a ‘new chapter’ in the history of the alliance between the countries . In addition to that, the efforts by Jordan to tackle extremism and terrorism by adopting a much more comprehensive approach through the involvement of all the effective and relevant parties. Moreover, discussions had been planned for undertaking negotiations for reinstating and sustaining peace in the Palestine and Israel issue. China, during this session, had proposed aid in tackling the Syrian refugee subject as well.
Furthermore, the Jordan News Agency had mentioned in one of the several reports published, that continued cooperation was expected to facilitate the progressing bilateral relationships between the countries. In addition to that, the implementation of effective coordination and communication has been deemed important in the particular matter. Moreover, the issues of mutual interest had been discussed to establish and enhance trust as well as common values between Jordan and China . Furthermore, it may be stated that holding regular meetings to sustain communications had been agreed upon. Additionally, communications had been planned to be intensified between the legislative institutions, along with the governments of the respective countries as well. The interest of China in promoting economic development and cooperation in Jordan has been, therefore quite evident from the aforementioned agreement between the countries. In addition to that, China had pledged its support for Jordan, with regards to maintaining stability and security to enhance the social and economic development .
In addition to the discussed matters, Jordan’s support for China’s ‘One China Principle’, to maintain and support China’s effort for the renewal of its position on Taiwan has been done as well. Furthermore, “the naval silk road of the 21st century” along with “the economic belt of the Silk Road”, was highlighted . Additionally, the investment of Chinese organizations in Jordan had been mentioned in the particular aspect. The joint statement issued by both the countries had stated the support of Jordan in developing the infrastructure, such as water desalinization, waste management and treatment, the development of roadways, railways, communications, oil, electricity, renewable and nuclear energy projects. According to multiple published reports, the trade volume had reached a high of $3.6 billion in the year 2014 . However, the trade is considerably favourable for China; regardless, it is to be noted in this regards that the exports of Jordan to China had gone up by 200% in 2013. Therefore, a considerably significant economic relationship is found to be evident from the reports throughout the past few years. The exports have been found to be primarily potassium and potash from Jordan, which had been estimated to be approximately $300 million . However, it may be mentioned in this context that the imports from China had been estimated to be around $3.3 billion.
In 2013, an agreement was signed between both the countries, which entailed the investment of China in Jordan, with regards to the construction of oil shale power plant for the generation of approximately 900megawatts of electricity, estimated to cost approximately $2.7 billion . The deal had involved the development of a renewable energy power plant having a capacity of approximately 1,000 megawatts, in the $2.7 billion packages. In addition to that, a contract had been validated for the provision of the national railway network, estimated to cost around $2.8 billion. A consortium of the HTJ Group and the Shandong Electric Power Construction Corporation, commonly known as SEPCO III, along with the Al-Lajjun Oil Shale Company Jordan was established to construct the power plant . In addition to that, another deal had been forged which involved the China International Water and Electric Corporation, along with the Xinjiang Goldwind Science and Technology Company for designing, operating, developing and constructing a wind-powered plant, having a capacity of around 300 megawatts in Jordan . It may be mentioned in this context that as per the agreement between Jordan and China, the investment from several Chinese companies has flourished in Jordan. For instance, Trina Solar, a Chinese solar energy company has expressed the intentions of investing approximately $200 million in the development of solar energy projects in Jordan, in the year 2012 . Furthermore, another incident, which remains largely unreported, is a contract signed between the respective governments of both the countries regarding a nuclear deal.
Oil Shale, which differs from Shale Oil, is a fine-grained sedimentary rock. It is known for releasing gas and oil, once heated to a considerable high temperature . The technology implemented for the extraction of Oil shale is regarded to be neither environmentally friendly nor to be cost-effective. Furthermore, according to reports from the World Energy Council, Though previously mentioned that the USA had expressed keen interest in investing in military and defence sectors for Jordan, the investments made by China deserves mention in this aspect. China had invested in Jordan, in the form of a grant, which had cost approximately $4.9 million, to the Jordan Armed Forces, also called the JAF, to procure military equipment made in China . However, despite the provision of the grant, it was deemed unusual that China would replace the USA as Jordan’s chief supplier of military equipment and weapons. Regardless, the export of weapons and other military equipment have been determined to increase because of the enhanced threats from the neighbouring countries of Jordan in the Middle East regions.
It may be mentioned in this regards, that Beijing had donated a significant sum of money, amounting to approximately $200,000 to provide transport and medical aid to the Syrian refugees flooding into Jordan . Furthermore, considering the amount of money donated to Jordan by China, as a sign of ‘generosity’ can be added up to $57.1 million between 1999 and 2009, in the form of 17 grants in total. Moreover, interest-free loans had been provided by China to Jordan, since 1984, accounting for a total of $38.4 million . The number of interest-free loans was seven. Delegations and conferences have been arranged since 2004 in the Hashemite Kingdom every year for the propagation of the economic cooperation between Jordan and China. The China Fair Jordan has been held in Jordan, since 2004, and subsequently attracts a fair number of Chinese suppliers, which aids in the facilitation of trade and economic cooperation between the countries.
In addition to the sectors above, China and Jordan, aimed at expanding the business relationship between countries through the development of railway projects, tourism, education, and culture . The China-Arab State Expo may also be regarded as a significant measure for undertaking the economic cooperation between the countries. Furthermore, the investments made by China for Jordan, with regards to the development of energy resources, seem to be sound and valid. According to the Renewable Energy Law, 2012, it is to be taken into consideration that 7% of the net energy requirements in Jordan will be met by solar and wind energy resources by the year 2015 . In addition to that, it is to be noted that the Law also mentions that the source for the energy resources can be attributed to domestic sources for as much as 25% of the net energy produced.
Furthermore, the percentage is expected to reach around 39% by the end of 2020. Hence, a significant amount of investment is required for Jordan in this regards. The investment is estimated to be anywhere between $14billion and $18 billion . Since Chinese firms are known to possess expertise in the sectors above, the assistance for the services and the technology is to potentially come from the Chinese investors.
It may be mentioned in this regards, that the Middle East plays a crucial role in the Foreign Policy of China, and the role is increasingly becoming important for the acquisition of energy resources and the establishment of business markets for the sustenance of the Chinese markets . The strategic influence of China over the Middle East can be successfully established through the development of effective economic cooperation between Jordan and China. The development of the “One Belt, One Road” initiative by China is undertaken by the Chinese government through roadways, sea routes as well as air routes and cyberspace, connecting 17 countries and built around 46 cooperation zones with the countries on the route to the ‘New Silk Route’. Additionally, the geographical proximity of Jordan to Syria and the consistent refugee crises prevailing in the country has led to the proposition from China to rebuild Syria. As previously mentioned, Jordan had been considered to be the gateway or the ‘portal’ to the Middle East to gain the energy resources, which China is quite interested in. Moreover, it is to be taken into account that the economic cooperation between Jordan and China may constitute as a signatory for attaining free trade agreements with various developed countries such as the USA and Canada .
The support of Jordan regarding the Belt and Road initiative by China has was an effective strategy for stabilizing the persisting relations between the countries. In addition to that, the expansion of both the markets into each of the countries can be considered as reaching a potential benchmark. For instance, the establishment of Dragon Mall, in Jordan, which may be regarded as a platform for launching Chinese products and services, encourages the growth and expansion of trade . Figure 2illustrates the Trade in Services concerning China. The Statistical representation demonstrates the trade incomes throughout the years 2012 to 2017 for China. Furthermore, both the exports and imports have been listed in Figure 2.
Figure 2: Trade in Services for China
Considering Jordan, it can be mentioned that China is reported to be Jordan’s second largest import partner. Figure 3 illustrates the major import partners for Jordan. It demonstrates Saudi Arabia as the largest import or trade partner for Jordan. However, China is observed to be in the second position. Germany, USA, Egypt, and Ukraine are reported to follow China concerning trade relations with Jordan . The percentage of imports by Saudi Arabia is established to be around 21.1%, while China represents an import percentage of approximately 10.4%. The other import partners rank respectively with 6%, 4.6%, 4.5%, and 4.3% . However, it can be mentioned in this case that the basis for the development of the economic cooperation between the countries has been established to be the maintenance of regional peace in the Middle East as well as the better scopes and opportunities for commerce and economic development.
Figure 3: Import partners of Jordan
Jordan is an emerging country with a growing economy. In earlier years, in the 20th century, there were certain obstacles like low growth rates, political disintegration, lack of commercialization and technology affecting Jordan’s economy . On the other hand, Jordan faced scarce water supplies and lack of oil imports for energy. Besides, there was regional instability and social instability affecting the overall economic condition. As per research, Jordan’s total foreign debt in 1998 was $ 10 billion that gave rise in 2011 with $19 billion. It developed representing 60% of countries GDP. As per estimation, Jordan’s GDP revealed an increase considerably. The per capita of Jordan rose by 351% in the 1970s. It witnessed both declines and increased in consecutive years. It again declined by since 1970 of 30% in 1980. Again it experienced an increase of rose 36% in the 1990s. Thereby before the collaboration, Jordan was referred to like emerging market . There has been emerging growth after King Abdullah II’s came into the throne in the year 1999. Soon with creative and liberal policies, king helped in integrating liberal economic policies that brought the major boom in 2009. Jordan’s economy has brought in annual growth rate and development of livelihood and supportively coordinated functioning of the business sector. However, the growth slowed to 2% on GDP after the Arab Spring that came up in the year 2011 . On the other hand, a huge volt of issues erupted with overpopulation, segregation of classes, the decline of economic growth and rising public debt and domination of high class over low class. Together, the factors resulted in worsening of poverty and paved the way of unemployment in the country.
Figure 1: Major economic indicators of Jordan in 1980–2017
With the slow in the economy, it gradually increased averaging around 2%. Jordan’s total foreign investments rose by 93.4% of its GDP. With collaboration with China, regional instability was reduced . There was an increase in the banking sector, the rise in small sectors of business and tourist activity. Investments by foreign companies increased with military expenditure and increased in annual revenue. After the collaboration, Jordan’s government with the target of reducing foreign debts formulated an austerity programme. It aimed at reducing rates of debt by 95% in 2018. This brought in immense success of living.
It is important to note that with an increase in various sector agricultural sector of Jordan declined with time. Collaborative approach with China brought in a huge share of the economy with technology and equipment. It certainly increased with 2.4 per cent of gross domestic product as estimated by 2004. With collaboration with China, it welcomed more employees (skilled) from China diversifying workforce and creative ideas . Jordan’s labour force worked outgrown within agricultural sector in 2002-2004. The agricultural sector that increased with time after collaboration contains fruit and vegetable production. The sector has a considerable increase in revenue from including citrus fruit, and bananas, fruit juice, green vegetables, tomatoes, cucumbers within Jordan Valley. With technological conduct from China helped in producing cereals. Fishing and forestry helped in developing the domestic economy. The fishing industry got increased by 1,000 metric tons in 2002 with an increase of 2% by 2008. The forestry industry that was earlier smaller was taken care of regarding preservation approximately 240,000 total cubic meters. It was enlarged in maintain the livelihood of extinct species . The industrial sector has outgrown in the sectors of manufacturing, packaging and design, construction, and power and mining. The industrial development increased by 26 per cent in 2004 as per GDP. More than 21 per cent of the country’s labour force was reported to be employed in this sector in 2002.
During one cross-border meeting that was held between the two sides- Jordan and China, both leaders stressed on building strong ties between countries enhancing them at all levels improving economic and social conditions . The meeting was held in Beijing between Majesty King Abdullah and Chinese President Xi Jinping at Royal Court in concern to strategic dealing for future purpose. The plan was initiated towards the betterment of political, economic, social, military and commercial levels. According to a Royal Court statement, it was announced that both the countries are required to establish strategic partnership ensuring meaningful and lateral cooperation, especially on the grounds of the economy . As per research, there has been immense recovery on States Expo. The program currently hosted by China’s Yinchuan city stating generous developments reconfirmed the information. It enlarged discussion on latest developments at the regional and international levels. It has focused much on ways to combat terrorism and extremism. The Department of Investigation surveyed various ways of adopting a comprehensive approach in developing economy and prospects. Besides, the collaboration to stand for the United Kingdom to deal with the Syrian refugee crisis helped in building economic standards and building foreign relations . With the collaborative, approach there has been immense growth in the Middle East, that has provided the necessary political solution in regards to Syrian crisis conflict. There has been increased in endeavours that helped in reviving negotiations between the Palestinian-Israeli sides integrating resolutions among relation. The issue that was earlier left unrecognised was solved between Hashemite Kingdom of Jordan and Republic of China. This has helped in strengthening economic development (small-scale enterprise) announcing the strategic partnership . Economic stability has been brought back through diversification in different business sectors alongside pace treaty and stability and progress. With the growth of the economy, there has been growth in regional and international relations. Besides, the issues of mutual interest were addressed and enhanced in the process to raise common values and trust. The economy cannot wholly grow through diversification in business sectors and outsourcing but through the foreign investment made in the home country and in building peace-relations among countries. Valuable, through the process, countries will foster both social and economic developments . Jordan and China also have outgrown small and large enterprises with the Kingdom paving the way to support “one China principle” and “the Chinese government’s that has helped to reunite Jordan with foreign investments in greater prospect.
The study experiences expansion within the banking sector that reduced any financial crisis also deepening – productivity relationship between citizens. The study relies on provincial panel data and regional productivity growth in understanding the gross financial development. Jordan has enabled positive nexus exists . The exits are carried on between financial deepening and productivity growth in measuring underground activities and loopholes that earlier blocked financial deepening within Jordan’s credit market. Using panel data on Italian regional credit markets, they find a strong negative impact of the share of irregular employment on outstanding credit to the private sector. There has been an increase of 2% of employees in the volume of business.
On the other hand, the increase of 0.5 percentage points about outstanding credit to households is identified. However, the informal sector remains weak and statistically not significant within Jordan . It is important to gauge the importance of financial development and its requirement. However, satisfactorily result allows the government of Jordan to rely on foreign relations like China.
Since 1995, Jordan experienced slow economic growth. It grew with 1 % as per yearly estimation. It also experienced an annual decline through official unemployment that doubled until 2000. The country experienced consistent budget deficit and public debt. It is important to have remained high during the period of inflation . The factors are discussed above that remained low. Besides, the monetary policy affected the currency rate. Apart from the decline in annual rate in the industrial sector, the business sector was affected and brought in tensions during the illness and ultimate death of King Hussein in the unexpected time and year of 1999. However, tensions were reduced after the accession of King Abdulla. With his accession, it helped in improving not only foreign relations with countries like Arab and Syria and China. The collaboration brought in real economic benefits to Jordan. With the collaboration of WTO membership, (that China has remained part of) and Free Trade Agreement with the U.S. as developed investment in foreign trade and growth in export .
International Research Journal of Finance and Economics (IRJFE) reports that there is an evolution in the financial system of Jordan, which shows rise is various aspects of the country. There is a rise in velocities of currency circulation allowing the economy to develop and progress ahead. Furthermore, using money supply as a per cent of GDP reflects the ability of the financial system to channel funds from deposits to investment opportunities . What is most important is confidence in engaging in foreign affairs. China being economically updated through technology and has succeeding increased social strata through tech-based and creative ideas allowed Jordan to promote tech-based work. The degree of monetization in the economy helped to study of financial depth of the financial intermediaries. The indicators increase in banking system assets and its credit according to GDP. The rise of banking system helped in modifying the financial system as it is the most important source of credit for various constituents in developing Jordan’s economy. The percentage of the public and private sector is lesser than the banking sector. New reforms undertaken by the government allowed different sectors to conduct efficient allocation of credit .
On the other hand, as per the report, the private sector has been using resources productively as compared to public sector. The increase of private enterprises after collaboration has helped in developing not only credits but acts as a superior measure for financial development. Funds are now utilized in a more efficient and productive manner.
Financial markets of Jordan prove to be successful and provide valuable information. It provides information regarding coordinate decentralized decisions undertaken by the government in developing the strata of the economy. From sources, it has been gathered that the rates of return in financial markets to guide households in systematizing income between consumption and savings . As per research, since 20015 there has been increasing increase in national income developing livelihood of citizens. There has been a remarkable increase in the stock of wealth — the financial condition developed to an extent to ensure that the country can function efficiently. Every business whether small or large can allocate resources across time and space and expand foreign export and import conditions these factors generally has enabled economic flourish. With collaboration with China, allowed Jordan to shower economic performance by facilitating transactions. The transactions are not only limited to collaborative approach but to the United Kingdom and South-Asian countries . It has helped in mobilizing savings and allocating capital across the various domain of business internationally. Online payment services have allowed business sector to perform internationally and develop a variety of financial products. One the major front the expansion of the corporate sector helped to cope up with issues regarding finance and uncertainties by the increase in share and reducing pricing risks. A stable and efficient financial condition allowed Jordan to limit risks on esoteric grounds. There has been the positive impact of financial development of collaboration of China and Jordan. On economic growth, Jordan has immensely outgrown with rapid success . The government initiated new programs on widely financial development measures. According to various resources, (case studies), it is found that country has foreign and national individuals on the grounds of being employed and grouped. There is a consistent rise in currency ratios, monetary ratios, and financial ratios. The percentage of share of the private sector has risen considerably as per GDP per capita. The parallel progress of economy is hard to calculate and runs not parallel.
Figure 2- Currency Ratios versus Real GDP Growth of Jordan from 1992-2011
The world economy is a crucial aspect where markets of different nations have to survive to be able to run commerce successfully. This is a concept that is accepted by the nations of the world, whether the nation is a developed one or is still developing. When a country becomes part of the world market and participates in the trade with other countries, the economic or financial prospects improve . While different countries had a notion that investment from foreign nations would ruin the economy of the country where the investment is being made, that age-old concept has changed. Countries have evolved and have an idea today that opening the barriers of trade for other countries to join helps all the parties involved in the deal. It helps in tax-related issues and provides a valuable aspect of tariffs.
Jordan is a country, which has a growing population and an emerging economic condition. It is located in the Middle East and belongs to the Hashemite Kingdom . Unlike other Middle Eastern states, Jordan does not have huge resources of natural gases or oils. However, the country has a terrific strategic advantage as it serves as a crossroad for people of different religions like Muslims, Christians, and Jews. It also serves as a crossroad for the business expansion route to the Levant. Therefore, Jordan holds economic significance in the world trade. China and the US, both developed countries regarding technology, infrastructure as well as economy are interested completely in the prospects of Jordan . Both countries have invested huge capitals in various sectors of the country to benefit from it. The economic beneficial aspect is a bilateral concept for the countries of China and Jordan. In recent years, the concept has taken a trilateral cooperative stance, which involves various sectors like energy, defence, trade, and commerce.
Discussions regarding this point have been done in details in the section above, and one can see that the countries of the Middle East have in one way or the other been affected by the involvement of China and Jordan . The relationship between the two nations has multidimensional effects on the surrounding nations, but these effects can both be positive and negative. The economy of Jordan has improved as well. The standard of the roads and the system of transportation has evolved with the involvement of China. China as a country has advanced technology and infrastructure, and Beijing is interested to expand those fields in the country Jordan. Therefore, because of the improvement of transportation, the tourism sectors have evolved as well. The tourism sector in Jordan provides employment and contributes to the economic growth of the country.
This paper has considered all such aspects, which has emerged along with the relationship between Jordan and China . While the involvement in the MENA regions has benefitted the countries, they have to be checked regularly. China has huge aspirations regarding economy from these sectors, but the country Jordan has benefitted too as it has been able to reduce the percentage of debt in the recent years and plans to do so in the future as well until they become economically and socially stable.
2.8 Conceptual Framework/ Theoretical framework
|ECONOMIC COOPERATION BETWEEN JORDAN AND CHINA AND ITS IMPACT ON THE MIDDLE EAST AREA|
|The importance of the Jordan location regarding Middle East region|
|The economy interface of Jordan and its influence on the Middle East region|
|Effect of the economic cooperation on Jordan economy|
|Current economic cooperation between Jordan and China|
|Difference between the economy level before and after cooperation with China|
Research methodology can be regarded as the specific procedures or techniques which may be implemented to identify, evaluate, select, process and analyze available information concerning the subject matter of the research. The overall reliability and validity of a project can be identified through the comprehension of the methodology adopted to carry out the research effectively . Furthermore, the prime objective of the research methodology is to aid in the prediction of phenomena, through evaluating, analyzing, explaining, and describing the research work conducted work establishing the validity of the research project. There are primarily four major types of research, namely correlation, descriptive, experimental, and quasi-experimental research . The type of research is extensively dependent on the degree to which the researcher aims at designing the control for the variables present in the experiment or the research. Research methodology not only identifies the type of research or the research design. In addition to that, the research philosophy is recognized, along with the justification of the chosen philosophy. Furthermore, an introduction to the concept of the selected research approach is described within the research methodology . Additionally, relevant information about the data collection methods as well as the type of analysis and the type of data to be collected for the research is discussed.
The aim of the researcher in this chapter is to provide a discussion about the whole research that has been conducted. There are different methods that have been used to conduct this particular research, which is thoroughly mentioned and discussed. The relevant information that has been collected has been evaluated in this chapter. The main aim of this chapter is to focus on data collection techniques . The whole research has been conducted about the economic condition and status between Jordan and China. All the analysis that has been conducted is based on the market analysis and surveys. The philosophy of the research, its approach, and the different types of research approached are illustrated in this research methodology.
A significant approach has been adopted towards the conduction of the research. The whole research has been designed to understand the suitable consequences of the whole research. The researcher has selected and opted for certain methods for conducting this research. The researcher has opted for a research survey, which helped in understanding the economic relationship between the two countries. The research is done with the help of a realism research philosophy, research approach- deductive and inductive, the data collection method- quantitative and qualitative and a data collection technique. The data has been collected with the help of interviews conducted from the management and managerial ranks of Jordan and China.
It may be mentioned in this regards that the research outline is dependent on the objectives for carrying out the research. Furthermore, the research is conducted to meet the proposed objectives of the research. Hence, an alignment with the research objectives is essential while discussing the research outline. Moreover, the prime objective of this research is to identify and evaluate the role of China in facilitating the economic progress of Jordan, along with the neighbouring countries based in the Middle East region. In addition to that, the research is based on the challenges, which either of the countries faces concerning the development and formation of the economic cooperation between them. Furthermore, the impact of the economic cooperation between Jordan and China on the Middle East region has been identified as one of the prime reasons for carrying out the research.
The main aspect of the research is to design a research philosophy. Research philosophy is essential to be structured at the beginning of any particular research. This research philosophy is designed as a belief, which determines the various ways in the data for the research is collected, used in the respective research and the way they are analyzed. There are mainly three types of research philosophies, which is a part of the research methodology as a whole. The three types are positivism, interpretivism, and realism. The philosophy that is incorporated within this paper is the realism philosophy. The realism philosophy helped the researcher to collect a lot of information about the economic status of both the nations on a real-time basis . The interview that has been conducted by the researcher on the different participants are directly connected to the market analysis and provided a raw brief of the economic relationship of Jordan and China. The interview has a direct relation to the subject. The realism philosophy has the most authentic research results as they are based on scientific queries. There are two types of realism: –
Direct realism- this is the reality that is illustrated through the individual senses of humans.
Critical realism- this is regarded as a criticism that is provided by the different subjects based on their personal experiences.
In this paper, the researcher used both the realism philosophy to gather information about the present situation of the relationship between Jordan and China. The interviews that were conducted the subjects shared their general views as well with their personal experiences and how this pertained relationship affected them.
The selection of a research approach is evaluated by the selected topic and the philosophy of the research. The research approach type that has been selected is based on two types of methods Inductive and Deductive. The main importance of Inductive type of research is to produce and understand the theory of the whole research . The inductive type of data that is collected is done in two divisions, one through the data of the social event and the other is developed after the formation of a particular theory. The speculations that obtained are tested with the help of the deductive approach. These two approaches are selected for certain reasons, which helped the researcher to gather all the information efficiently.
For doing market research about Jordan and China, the researcher has selected the primary research method to complete the search protocol. The researcher made a questionnaire regarding the research topic, i.e. the economic relationship between Jordan and China. The questionnaire was used in the interview to get an evaluation of the real-time situation about the economic relationship between the nations . Primary research is very helpful as it provides a picture of the present and current situation of Jordan and China as the researcher has directly interviewed the responsible people in authority. This provided an outline about the development scenario of Jordan after granting the investment from China.
A detailed description of the approach has been previously mentioned concerning the purpose of carrying out the research effectively. However, it may be mentioned in this aspect that in case, both the types of research approaches have been implemented, to address the analysis of various types of data collected for this research project . The use of a deductive approach is widely used as it aids in the provision of arriving at a conclusive answer or a conclusive theory for the research project. The researchers generally use the deductive approach as it provides a basis for explaining the findings of the research. Furthermore, a relevance and link between the findings and analysis can be presented through the hypothesis or the theory related to the findings . However, it may be stated in this context that the implementation of the inductive approach has also been established for this research project. The implementation of the type of the research approach is dependent on the type of data collected as well as the type of analysis to be performed on the data gathered. It may be mentioned here that the inductive approach has been found to be effective for validating the data collected from the secondary sources.
To carry out the research appropriately, the deductive approach has been considered to be of vital importance. Deductive approach is regarded as a logical reasoning procedure, which involves deducing potential hypothesis from the available data and information derived from primary as well as secondary sources of information. Deductive approach is primarily based on the soundness and validity of the argument presented for a particular case. Therefore, the data gathered from primary and secondary sources may act as the primary source of information for the analysis using a deductive approach . A deductive approach is aimed at testing a specific theory. In this case, the relationship between China and Jordan are to be identified and tested with regards to the available information gathered from various sources. Hence, the implementation of the deductive approach is considered for the purpose. In addition to that, obtaining a concept of the  research onion can be beneficial in this aspect.
Figure 5: Saunders Research onion
An inductive approach is generally characterised by deriving the conclusions from the particular cases to general rules, often termed epistemic uncertainty. The rudimentary principle for inductive approach can be regarded as formulating a theory based on the observations and the patterns. However, it may be stated in this regards that the conclusions arrived at in case of a deductive approach have some certainty to it, while the inductive approach is primarily and chiefly based on the probability of the statements and observations of the evidence obtained . In this case, the certain areas, which may be regarded as research gaps, may be aimed at being fulfilled through the implementation of the inductive approach for carrying out the research. The data regarding China’s strategies concerning the Middle East countries could not be gathered as previously mentioned in the Research Gaps. However, the inductive approach may prove effective in shedding light on to the area being considered as a research gap.
Figure 6: Principle of Inductive approach
The research design, as previously mentioned consists primarily of four types, namely, correlation research design, descriptive, experimental, and quasi-experimental research. It has also been mentioned in the former sections that the research design is chiefly dependent on the researcher’s control over the variables involved in the research study . Descriptive research designs aim at describing the research problem and the overall scenario for the research through description, though accurate predictions are not made in this regards. Furthermore, three major designs have been identified with regards to the research design, such as a survey, the case-study method and the observational method . In addition to that, the research may vary depending upon the subject chosen for research. For instance, analytical research design may another type of research design. Additionally, an applied research design aims at bringing out the applicability of the research project.
Under associational research design, co-relational research design is noted, while interventional research design, experimental as well as quasi-experimental research designs are observed. In addition to that, the quantitative, as well as qualitative research analysis types, can be identified as a part of the overall research project. Furthermore, research design can be manipulated by the statistical data derived through the computational techniques . Figure 7 illustrates the rudimentary stages in the research design generally followed and implemented by researchers. The overall research design generally highlights the approach, which can be qualitative or quantitative, or a combination of both the methods, commonly referred to as mixed methods. Furthermore, the other elements of the research design can be listed as the sampling techniques and the samples, along with the methods of data analysis.
Figure 7: Research design
A descriptive design has been chosen for this research project. The objective of the research design is to establish a link between the research questions formulated for answering the doubts and certain aspects of the research project. Therefore, a research design can be considered as a framework for addressing the research questions, or the research objectives . A descriptive design is chosen for the research project. The research aims at identifying the economic cooperation between China and Jordan. Furthermore, the challenges for the economic cooperation between the countries are to be evaluated for the research project. In addition to that, other relevant aspects of the economic cooperation between Jordan and China are mentioned and thoroughly researched. The descriptive design is considered to be the most suitable method in this regards.
Accurate predictions are not a part of the chosen descriptive design. However, several sub-categories of the descriptive design have been considered as well. In addition to that, survey methods, observational methods, along with the case-study method are identified as the chief descriptive design for the research . The descriptive design is, therefore, deemed to be accurate in this regards, for this research project. The subject matter chosen for the research may also be regarded as the case-study for the descriptive analysis to be implemented in the research study. The cooperation between China and Jordan is primarily justified through a thorough and in-depth analysis of the issue. Hence, undertaking a descriptive analysis or a descriptive research design proves adequate for the research.
This paper has already provided research work on the importance of the investment by developed countries like China and the United States in developing countries like Jordan . The silk route has been established and commenced between the nations China and Jordan, and it promises to benefit both the countries in the future concerning financial aspects. However, a country like Jordan cannot alone depend on the possibilities of the Silk Route. It has various internal issues, which has to be solved before it can emerge as a country that is financially stable and a country that can easily provide for a better standard of living to its citizens  Although, it is not only the business policy makers or the government who has to be involved intricately in order to improve the country that is sinking. The citizens of Jordan have equal responsibility towards their country and their society. They have to engage regularly with various prospects and projects, which will help Jordan, evolve as a developed country free of all its financial debts. Along with the involvement and help from foreign investors, help from inside the nation is crucial for it to sustain in this rapidly emerging economy of the world market .
The United States has already promised to provide financial aid to the country Jordan and has pledged to provide USD 6.3 billion for five long years to assist the economy as well as the military of the country with an emerging financial stance. However, the United States is facing tough competition in the contemporary market from China and is finding it had to secure their place in Jordan. The influence, as well as the presence of China in the commercial sectors of Jordan, is expanding rapidly . China has taken elaborate initiatives to connect all the investments it made in Africa, Eurasia, and the Arab Gulf. While doing so, the Levant has become a very significant transit hub within the Belt and Road Initiative or BRI, to the Chinese resource projects and the Chinese energy. China is considering Syria as the key link of the crossroads, which will serve as the long-term nodes of the project. Beijing, on the other hand, thinks that Jordan can provide a short-term link as the country is relatively stable as well as presents an environment that is low in risk . Therefore, China has made several investments for the long-term in the country of Jordan and has taken it on their side so that when the right time arrives Jordan can be the important gateway for the Belt and Road Initiatives into the Levant. Jordan will also be considered as the centre for the reconstruction efforts and initiative in the country Syria.
The collaboration of Jordan and China in the Belt and Road Initiative and the negotiations regarding the various aspects of the deal is underway; Jordan has already joined and is a part of the Asian Infrastructure Investment Bank or AIIB, which funds the projects that are ongoing in these countries . The government has started an austerity project and adopted it within the social prospects, which has helped Jordan to reduce the debt-to-GDP ratio from an abnormally high level to 77% by the year 2021. This programme helped the country from preventing the debt increase over the range of 95% in the current year. Jordan is being helped by China, and the relationship is creating a chance for the emerging country to create a stable environment in the world economy . While significant inroads are being built by China with the help of socioeconomic tools, trade, as well as investments of energy, the Chinese businesspersons are concerned for the building of popular support among the population of Jordan. With an investment, which was estimated to be more than USD 7 billion, the country China signed a deal to improve the transportation of the country Jordan. It not only enhanced the transportation system but the trade and energy sectors as well. China invested over USD 2.2 billion in the oil shale power plant that is considered to produce 15% of the national energy that is required for the people of Jordan . It has also invested in the national railway as well as the renewable energy projects and plants of Jordan. China moved on to invest billions of more dollars in the country Jordan and help build Fujian Maritime Silk Road Commodity Center along with the Jordan Ministry of Transport. This helped the country to become a developed country in the field of transport and be the 35th country to have the best infrastructure. The initiation of trade and energy projects along with transportation helped Jordan’s economy through tourism. It employed along with hard currency as well as economic growth for the country that has been in debt for a long time .
The investment of China in the country Jordan has different implications for different nations. While it can be of tremendous for the other countries present in the Middle East like Arabia, Dubai, or Iraq and Syria, the relation can have adverse effects on these countries as well . The Sino-China relationship and economic cooperation have to be established and enhanced regarding agriculture, electric power, communication, technique, transportation and energy. The sudden hike in the prices of oil in recent times has enabled the Middle Eastern countries to become great exporters of oil all over the world. These exports resulted in the accumulation of billions of US dollars, which in turn opened up new investment opportunities in the fields of infrastructure construction and overseas development . To do so, these countries need the help of the technologies and the markets of China. This kind of bilateral cooperation will help increase the economic development of the states of the Middle East.
China has many probable locations for expansion and investment in the Middle East, and Jordan comes second as the area of choice for further investment, just after Egypt. Chinese companies are already located in Saudi Arabia as well as the United Arab Emirates, but Jordan has the strategic and specific geographic location, which makes it act as a bridge between China and its investment in the countries of Africa and Arab Gulf . It equally serves as a significant point of entry to the regions of Levant. The economic cooperation between China and Jordan will be the future step for the efforts of reconstruction in the damaged and ruined country of Syria.
China within a few years has emerged as a nation, which benefits the Middle Eastern states due to its advanced infrastructure and economic investments and the engagement of political issues. China serves as a consultant, investor, and one that projects for infrastructure for the nations of the Middle East who will eventually become a partner of trade with China and these countries of the future are Saudi Arabia, Bahrain, Iran, and Egypt . This is a natural synergetic relationship, which is to develop between China and Jordan and will include the middle Easter states as well. It is so because the Middle East has ample amount of resources, which needs to be developed properly to gain economically from them and Beijing has the need to expand the market of infrastructure-based improvement and development. With these kinds of beneficial deals, the countries can have stability as well as peace with the help of essential investments with access to the resources of energy.
China has been able to benefit more from the deals than the US as it always maintains a neutral political as well as military involvement. The US, on the other hand, have military bases in the countries of the Middle East, which is resulting in the country to lose its commercial credibility . However, the track II projects and initiatives of U.S.-China will enable the countries of the Middle East to have trilateral cooperation and can gain from it in various governmental and social sectors like trade, economy, defence, and energy. The investment of China in the Middle East and North Africa or the MENA region were small initially. However, direct foreign investment has seen recent growth. The Belt and Road Initiative have improved the oil and gas pipelines, railroads as well as motorways of these countries thus facilitating world trade.
Figure 1: Performance of Industries in Jordan
These countries are plagued at all times with various internal issues. There are terrorist attacks, religious protests, mob violence, and various social issues like unemployment and poverty that hampers the countries on a regular basis. With the proper insight from the Chinese improvement plans, these countries can have a secured future concerning a slowing economy. The investment of China in countries like Syria, Jordan, Lebanon, Yemen, and many more, the geopolitical landscapes of these regions are changing fast, but the MENA investments have to be monitored at all times .
The types of data which are generally implemented in the collection procedures can be regarded as the prime data types. Furthermore, data can be classified based on the source from which the data is collected . For instance, data gathered from primary sources, such as through conducting surveys or interviews by the researcher, is considered primary data, or the data gathered from primary sources. However, when data is gathered from secondary sources, such as published journals, government documents, articles and so on, the data is said to be secondary data. In addition to that aforementioned information, it may be stated in this context that the type of analysis that may be performed on a given set of data may also determine the data type. For quantitative analysis, the data collected is primarily based on statistics and contains statistical information and data. In addition to that, the data gathered through interview may be regarded as data for qualitative research or qualitative analysis . Hence, it may be mentioned in this regards, the qualitative data is generally descriptive and requires a description based pattern for the analysis. In this regards, the data gathered is both of primary as well as secondary origin. Interviews have been conducted with several spokespeople of the embassy of both countries to gather information, regarding the economic cooperation between China and Jordan. The sample size has been decided to be 10. While the quantitative data is gathered through conducting surveys, wit aid of questionnaires as a tool for the research project. The sample size is decided to be 150 for the collection of quantitative data.
Data collection can be regarded as the methods or procedures implemented, for the collection of certain relevant and targeted variables confirmed within an established system. Data collected can be cited as one of the most important aspects or component of research in all subjects. The methods implemented for the collection of the data for the research is dependent on the type of data to be collected . In addition to that, the method for data collection may vary on the subject of research. For instance, research in fields such as science may require the collection of analytical data. Therefore, it may be mentioned in this regards that the methods may be dependent on the discipline in which the research is to be performed. The emphasis on maintaining the accuracy of the data remains a priority for the research. The primary objective of the data collection is to ensure quality evidence as well as to lead the researcher to concede to the effective and productive analysis of the data . It may be stated in this respect that the effectiveness of the data ensures the productivity of the analysis to determine the formulation of credible and convincing answers for the research questions or objectives proposed in the initial stages of the research.
To maintain the integrity of the research, it is essential to strongly emphasize the validity as well as the accuracy of the data collected. Depending on the data type, which is quantitative or qualitative data, the selection of suitable or appropriate tools for the data collection is to be ascertained . For instance, the implementation of a questionnaire is essential for conducting surveys. In addition to that, questionnaires are formulated to conduct interview sessions for qualitative data types. Therefore, the choice of the tool used is important as well for the research. Furthermore, the implementation of a formal process for data collection is to be taken into account, since, it may prove beneficial for the embodiment of the findings to be valid .
It may be mentioned in this context, that the outcome of collecting and using faulty data may result in the inability of the researcher to answer the research questions formulated for the research. In this case, the collection of qualitative as well as the quantitative type of data is collected for continuing the research on the economic cooperation between China and Jordan and its impact on the Middle East region. In addition to the aforementioned drawback of collecting faulty data, it may be mentioned that such actions may lead to the inability of the researcher to validate and repeat the experiment or the research. Hence, data collection combined with data analysis constitutes the major elements in a research project.
Quantitative data collection processes entail gathering data, which may be analyzed numerically or statistically. The emphasis remains on the objective measurements for ensuring the accuracy of the collected quantitative data. It may be mentioned in this regards that the use of computational techniques for the majority of the numerical data is essential for the progress of the research project. Random sampling is generally applied to the collection of primary quantitative data. Testing hypotheses are the primary objective of collecting quantitative data . Random assignment of activities to the sample size may be undertaken to address the research objectives. In addition to that, it may be mentioned in this regards that typical strategies for gathering quantitative data may include clinical trials, facilitating surveys with questions that are close-ended . Moreover, the development and creation of questionnaire for conducting surveys as well as polls and interviews is an essential aspect of the researcher.
The use of paper-pencil questionnaires and web-based questionnaires may be undertaken depending on the type of research to be conducted . Applied statistical methods may be involved in the human research surveys. Nevertheless, in this research project, the use of quantitative data collection methods has been implemented to gather data from surveys. The surveys have been conducted with various employees of organizations involved in the initiatives undertaken for the economic cooperation between Jordan and China. Therefore, the quantitative data collected from the survey may be regarded as primary data. In addition to that, no secondary quantitative data have been gathered for this research project .
It is evident from the aforementioned information that the use of statistical methods is common and is prioritized for the samples or data collected for the research in the field of economic. Since, this research project aims at identifying the causal relationships involved with the research objectives for manipulating variables, which may be considered relevant to the outcomes of the experiment or research. Opinion surveys are often used in this regards to gathering quantitative data for the research. The mathematical calculations, as well as the statistical data, constitute the most important aspects of quantitative data collection . In this case, a survey is therefore conducted for undertaking a quantitative analysis of the relevant data gathered.
The purpose of undertaking qualitative data collection methods can be attributed to the objective of research to study and assess the opinions, thoughts, and feelings of the participants of the research . It may be stated in this regards that the prime goal is to identify and uncover the trends in the thought process of the participants and therefore be able to formulate and analyze the qualitative data thus collected. Furthermore, the primary activities involved in gathering qualitative data are to directly interact or communicate with the participants or the sample population. Since, in this case, the researcher aims at covering the qualitative analysis of the data based on interviews with the spokespersons of the embassy of the countries. For this research project, qualitative analysis is performed on two sets of data . One of the sets of data is collected from primary sources, while the other set conforms to the secondary source of information. Since this research study is based on the economic cooperation between China and Jordan; data from secondary sources were gathered for qualitative analysis.
Firstly, the data for qualitative analysis has been gathered through conducting interviews with the aid of a questionnaire as the tool for carrying out the research study . The information or data derived from the primary sources or the spokespersons for the embassy is used for the performing qualitative analysis, taking into consideration the prevalence of the opinions regarding the economic cooperation between China and Jordan. In addition to that, the secondary data sources provide information regarding the qualitative analysis on the subject of economic cooperation between Jordan and China. Qualitative data is generally gathered through methods such as action research, individual interviews, observations, and focus groups . In this case, the researcher chooses the individual interview as the prime method for collecting qualitative data. Since qualitative data is collected through interviews and focus groups; it is evident that the overall process is time-consuming. Furthermore, the questionnaire prepared for collecting qualitative data or interviews implement the use of open-ended questions. Often structured as well as semi-structured techniques are implemented for collecting qualitative data. Participation, observation, the focus group can be classified as structured and semi-structured techniques. Qualitative research therefore, is also termed as an exploratory research in the primary. Case studies, observation, as well as documentary analysis can be regarded as a few components of qualitative research .
In any kind of research sampling is a crucial part. Without the presence of proper sampling and specific samples, the work done on the research tends to become obsolete. Samples become a significant component of any research work because the presence of proper samples makes a study or a survey legit . It provides any research done on any topic a value, which adds an extra level of importance with the work done. The paper that has been discussed here and the issue in question is not a general one but rather a very noteworthy one regarding understanding world trade and the economy as well. The idea of having a sample and finally providing one is the initial step towards the formulation of a legitimate work of research, and that is what has been done here. An example is simply a group or part of another thing of greater value or higher quantity, given that the part can represent the larger body . The larger thing of measurement can be anything from people to objects or articles and journals, which have been used to proceed with the study and which have been utilized to come to the results of the survey. Systematic sampling of important journals, as well as articles, have been presented in the paper to understand the collaboration of China and Jordan and to come to the conclusive ideas of how the developed country is helping the developing one through its economically difficult times to the future of financial stability . The citizens of the country of Jordan are a source of sampling and are regarded as the representative of their entire population while they are asked about their idea and understanding of the economy of their country.
The sampling of the file has been done in multiple stages so that the conclusion is precise and specific and does not leave scope for questioning its legitimacy. For the general purpose of providing detailed knowledge on the subject, the samples have been provided herein clusters so that they are easy to recognise and understand . Sampling is a convenient way of attaining the goal or to reach a conclusion, which has been done in this file. The work is done by inferring from the different statistics present, which gives us the idea of the whole scenario of the Middle Eastern states by only observing a part of the steps to progress.
The sampling for collecting the data is one of the most important criteria to be taken into consideration in case of carrying out research. Since the data to be collected in this regards is both primary and secondary. Once the sources had been identified, the sample size had to be decided. In simpler terms, the determination of sample size refers to the selection or choosing the number of observations, or the replication of the statistical sample. Furthermore, it may be mentioned in this context that the determination or selection of the sample size is primarily done based on certain factors. For instance, often the determination of the sample size is done because of the experience of the participants or the sample population . The reason behind the same is to evaluate and make assumptions regarding a population. In addition to that, choosing the number of participants in a study constitutes one of the most important aspects of sampling. Choosing a sample size too small may result in errors or risks regarding statistical hypothetical testing . Moreover, it had to be taken into account for this research study, the larger the sample size, the lesser is the risk of errors arising because of deviation or handling errors .
In this case, the researcher chooses to use 150 as the sample size for the collection of primary data. Random, purposive sampling is done for this research study. The sample size constitutes employees involved with multinational organizations operating in both China and Jordan. Booming sectors for economic cooperation between the countries had been considered for determining the sample size as well . In addition to that, for the collection of qualitative data, 8 individuals were interviewed for the purpose. 2 of the employees are from China, conforming to managerial ranks, while 2 more of the employees are from Jordan, working at management ranks. Additionally, 2 employees from the Middle East are interviewed to evaluate their opinions regarding the economic cooperation between China and Jordan, while 2 spokespersons were interviewed from the embassy of China and Jordan respectively to understand the cooperation between both the countries.
For research to be well designed and well formed it is very important to have certain features. Data analysis is that part of the research work, which provides in-depth knowledge of the proceedings of the work done in any kind of a study . After the data has been collected for the survey done in this paper, a proper analysis of that data has helped to come to the conclusions, which have been achieved in the file. The analysis of the data has helped to give validity to work done regarding the economic issues of Jordan and its neighbouring countries, which are still evolving and emerging as modern economies of the world. The data have been collected from the existing market, and the analysis has been done keeping in mind the articles and the journals that discuss in details the issue in hand . The policy makers of these countries and the government officials or business associates working in these fields provide the data, which serves as the basic information source for this file. The analysis of the data has provided with the chance to choose a proper philosophy of the research, and the whole study relies on that. The formation of the goals and objectives of the research depends on the proper analysis of the data that has been collected, and that step has been completed successfully .
The analysis has been done in two distinctive methods to provide the full details of the matter that has been discussed . As stated above it has both a qualitative as well as a quantitative stance, which gives the paper more value as a better work of study. With the help of important journal articles, qualitative research has been conducted to have clear observations regarding the issue. The rest of the survey gives the analysis the quantitative value, which it upholds. The analysis of the data has given a chance for the paper to have a significant interpretation of the serious issue of the world economy. Therefore, it has been able to provide meaning as well as sense to the data that has been gathered for the sake of the paper and the knowledge can be applied to specific fields in the future .
While the research done here is in details as well as is specific and precise, it still comes along with some limitations, which becomes the part of any research work done by any person . These are the shortcomings that were beyond the ability to control and have occurred naturally. These influenced the method of research and hindered the attainment of the conclusion to some extent as well. For example, it has been recognised that the effect and the impact of the collaboration between China and Jordan is crucial, however, the exact way in which the relationship might affect the neighbouring countries of Jordan in the future cannot be decided at this point of time, and that is how this paper lacks to show exact possibilities .
These limitations to some extent have hindered the realism of the philosophy formed regarding the issue in concern and the broad truth about the study has not been achieved completely. Being a part of the methodology used to obtain this research work, the limitations have a special place as they are the aspects of a study, which points out the gaps of the research and can also help in amending the shortcomings with proper focus and attention . When the limitations were faced, it is important to keep in mind that the range and the scope of the limitations need to be kept in control, otherwise having certain limitations while conducting a study on a topic as important as economic links between different countries is a normal thing. The shortcomings have been identified as well as acknowledged properly in the paper and have also been explained before reaching to the conclusive part of the study . While the collection of data from the previous works of research never posed as a limitation, however, the implementation of the idea or the data and the size of the data collected raised concern.
For every research work done, there is the need to maintain a simple standard of ethics . Ethics provide any survey with the proper views, which they require to express their principles and logistics of the study. Therefore, for this survey to achieve an ethical standard and consideration, it has maintained a level of privacy for the secondary source of research. It has to be maintained to safeguard the identities of the people who have taken part in the interviews and surveys that have been conducted as a part of the paper, which deals with a significant yet controversial topic of China’s involvement in the economy of Jordan .
Also, the information that has been gathered serves as the source of data for this research work to achieve a conclusive stance and has not been considered or used in any other way . It will help the finding-analysis, which will be conducted in the future and the ethical part of the paper has been formulated in a way that it can assist the studies to be done in future regarding this topic. The consideration of the ethics has multiple roles, and so it had been done incessantly as it adds social value to the research as well. The study has utilized the ethics, which forms the base of all works of research today and have used it to validate the information and the sources applied in this file for the attainment of the goals and objectives of the research . However, it has to be carried on further down the paper as well to maintain the level of effectiveness, which it has achieved due to the sustenance of the ethics.
Interviews depict an understanding of greater phenomena as it aids in providing a clear concept of opinions prevalent in society. Furthermore, educating the participants regarding the subject of the research and outlining the methods of conducting the study can prove beneficial. Additionally, the participants may appear to become accustomed to the procedure or protocol of the interview. It is essential for the researcher to decide which type of interview is to be conducted, namely, narrative interview, structured and semi-structured interviews . Hence, conducting the interviews may prove beneficial regarding identifying the social issues related to the economic cooperation between Jordan and China.
Ethical validation may be regarded as a justification or a test to measure the information and the data collected from various sources. It may be mentioned in this context that the validity of information derived from the sources stated, as well as the validity and accuracy of the sources, are to be taken into consideration while justifying the validation of sources . The primary data cannot be validated since it primarily comprises the opinions of random individuals who constitute the sample size. However, the data collected from the secondary sources can be validated by stating the authors and the papers published in the journals and the articles from which the information had been taken.
The time frame chosen for the completion of this research project is 10 months. A list of the activities was prepared initially for the research outline. Preparing the list of time framed activities had helped the researcher in performing a sequential and productive research project. In addition to that, since the activities had been time-bound, the researcher did not usually fall behind, as a result of the systematic planning. Since the research is divided into 10 months, the activities have been listed in Figure 8. Figure 8 illustrates a Gantt chart created by the researcher, to keep track of the activities which had been performed and which were to be performed. Therefore, the time-bound approach had proven to be beneficial in remaining on time for the final submission of the project. The first month for the research was spent trying to narrow down the probable topic for research and gaining the approval for the proposal established for the continuation of the overall research project. The 2nd month was spent gathering information about the economic cooperation between China and Jordan, and its overall impact on the Middle East region. The literature review was completed in the mentioned time frame. Furthermore, the next stage was to identify the appropriate and suitable research methodology. The determination of the research design, data type, research approach and more had been formulated during this time. Primary and secondary data had been collected in the 3rd and 4th months of the research. The analysis of the primary data required three months, while the secondary data analysis required 2 months. The findings and recommendations were completed in 2 months, while the final month was left for the final submission of the research project.
Figure 8: Gantt chart
(Source: Author’s creation)
|Tasks||Month 1||Month 2||Month 3||Month 4||Month 5||Month 6||Month 7||Month 8||Month 9||Month 10|
|Selection of the topic and approval proposal|
|Identifying the research methodology|
|Collection of primary data|
|Collection of secondary data|
|Analysis of primary data|
|Analysis of secondary data|
|Recommendation and conclusion|
|Final submission and celebration|
The study based on the methodology chosen for the research project has to be supported with the help of information and data collected from several sources. However, the data collected from the different sources are verified through the implementation of certain methods for the analysis of the data. The analysis may be performed through a qualitative method as well as a quantitative method . In this regards, it may be mentioned that this research project implements the use of both the analytical techniques stated previously. The qualitative analysis had been performed on both sets of primary as well as secondary data, while a quantitative analysis had been on the primary data collected. A survey was conducted initially with employees of multinational firms, operating in China, Jordan, as well as the Middle East with the aid of a questionnaire. It is to be noted in this aspect that the role of the questionnaire is of utmost importance for conducting the survey. The questions to be asked to the target sample size to cover the subject matter for the research are evaluated thoroughly during the development of a questionnaire.
Once the survey has been done with, the researcher represents the data or information graphically or statistically for performing the data analysis more effectively. It may be mentioned in this context that the major number of response is regarded to be the opinion of the majority of the population, which the sample population represents. However, in the case of quantitative analysis, the data is represented in a statistical manner, while the qualitative analysis is primarily descriptive . For this research project as well, the qualitative analysis had been presented through a detailed descriptive structure of the collected data. The findings of the data have been presented in this regards as well. The findings may be considered as the result or the outcome of the data analyzed concerning the research subject matter. For this research project, the economic cooperation between China and Jordan had been evaluated through the qualitative as well as the quantitative data, along with its impact on the Middle East.
The qualitative data has been categorized into primary and secondary data analysis. The primary data has been qualitatively analyzed through conducted interviews with 8 participants from various backgrounds as formerly mentioned, while other data collected from secondary sources were analyzed through a descriptive study. The descriptive study discusses the enhancement of scopes for the future cooperation between Jordan and China, along with the benefits of the economic cooperation between a lower and a higher economy . In addition to that, the positive outcomes of the cooperation in the Middle East concerning China and Jordan have been mentioned, as well as the mention of the economic prognosis between Jordan and China. Hence, the findings have been mentioned and discussed highlighting the objectives that were found relevant to the research.
The chosen sample size for conducting the survey for the quantitative data collection for the analysis was 150, comprising the employees of various multinational firms operating in Jordan and China, as well as expanding to the Middle East. The questionnaire used for conducting the survey has been provided in the Appendix. The response for the survey, along with the graphical representation has been presented below:
Question 1: Do you think that the growing economic cooperation between Jordan and China has led to an increased scope of employment?
Table 1: Response to Question 1
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||62||150||41%|
|3. May be||18||150||12%|
|5. Strongly disagree||14||150||9%|
Figure 9: Statistical representation of Question 1
(Source: Author’s creation)
It may be stated in this regards that approximately half of the respondents had chosen to agree the growing economic cooperation between Jordan and China had led to an enhanced scope of employment for the youth of both Jordan and China. However, 12% of the respondents remained unsure of the choices, and 17% of the sample population has disagreed with the survey question. Hence, it may be mentioned in this context that since the survey had been conducted with employees from multinational firms, the opinions of the sample population may be considered valid, if not accurate.
Question 2: Do you think the Belt and Road initiative by China would facilitate the employment in the Middle East?
Table 2: Response to Question 2
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||70||150||47%|
|3. May be||18||150||12%|
|5. Strongly disagree||6||150||4%|
Figure 10: Statistical representation of Question 2
(Source: Author’s creation)
The Belt and Road initiative, which is also known as the One Belt, One Road initiative undertaken by China to promote the scope for the development of the New Silk route going through the Middle East via Jordan. 79% of the sample size or more than half of the population agreed that the initiative would facilitate employment in the Middle East region. However, 12% of the respondents remained neutral on the subject, while 9% of the population disagreed.
Question 3: Would you say that there have been more positive outcomes for Jordan than negative ones, as a result of economic cooperation?
Table 3: Response to Question 3
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||65||150||43%|
|3. May be||22||150||15%|
|5. Strongly disagree||10||150||7%|
Figure 11: Statistical representation of Question 3
(Source: Author’s creation)
71% of the sample size stated that there were more positive outcomes noted as a result of the economic cooperation between Jordan and China, while 15% of the respondents remained neutral and expressed no particular opinion regarding the subject. However, 14% of the population disagreed. The opinions regarding the question had been personal opinions of the individuals noted through the impact of the economic cooperation.
Question 4: Would you say that the ‘New Silk Route’ proposed may aid in the propagation of the development of Jordan and the neighbouring Middle East?
Table 4: Response to Question 4
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||75||150||50%|
|3. May be||24||150||16%|
|5. Strongly disagree||5||150||3%|
Figure 12: Statistical representation of Question 4
(Source: Author’s creation)
As observed through the opinions of the sample size, this particular initiative by China aims at providing not only economic relief, but also development regarding culture. Therefore, it is noted that 77% of the sample size agrees that the implementation of the Chinese initiative would provide scope for employment. Regardless, 16% of the population remained neutral, while 7% disagreed.
Question 5: Is the impact of the economic cooperation between China and Jordan evident within the workplace and culture?
Table 5: Response to Question 5
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||75||150||50%|
|3. May be||24||150||16%|
|5. Strongly disagree||2||150||1%|
Figure 13: Statistical representation of Question 5
(Source: Author’s creation)
81% of the sample size states that there has been a visible impact workplace culture as an outcome of the economic cooperation between Jordan and China. 16% of the sample size remained unsure of the choices provided, while 3% of the sample size disagreed. The development of cultural centres may have an impact on the workplace and the culture of Jordan as well as the Middle East.
Question 6: Would you say that mitigating certain issues in the Middle East can be addressed through the cooperation between Jordan and China since Jordan plays a key role in the Middle Eastern issues?
Table 6: Response to Question 6
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||55||150||37%|
|3. May be||32||150||21%|
|5. Strongly disagree||16||150||11%|
Figure 14: Statistical representation of Question 6
(Source: Author’s creation)
According to several scholarly articles, the prime objective of China in extending economic cooperation with Jordan is to gain access to the Middle East and the resources and scope for employment. 61% of the sample population agrees with the question, stating that China also plays a significant role in mitigating issues among the Middle East countries. Furthermore, China aids in the mitigation of certain economic as well as political matters in the Middle East, gaining the dependence of Jordan. 21% of the sample size remained neutral to the question, while 18% of the population disagreed.
Question 7: Do you think Jordan can be a gateway for China to enter the markets of the Middle East for gaining energy resources?
Table 7: Response to Question 7
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||58||150||39%|
|3. May be||42||150||28%|
|5. Strongly disagree||6||150||4%|
Figure 15: Statistical representation of Question 7
(Source: Author’s creation)
It has been evident in the earlier aspects of the research project that one of the primary goals of China is to gather resources both renewable and non-renewable from Jordan and the Middle East. Since Jordan acts as a middle agent for both the countries; it is likely to pose as a gateway for China to enter the markets of the Middle East. 64% of the sample size had agreed with the question, while a vast population, 28% remained neutral regarding opinions on this matter. However, 8% of the population disagreed.
Question 8: Would you say China has created a vast market for its products in the Middle East and Jordan?
Table 8: Response to Question 8
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||65||150||43%|
|3. May be||17||150||11%|
|5. Strongly disagree||4||150||3%|
Figure 16: Statistical representation of Question 8
(Source: Author’s creation)
Through the investments in Jordan and the Middle East, China has created a market to expand and sell its products which have been experiencing overproduction sine the past few years. 82% of the respondents agreed that China had created a market for its product in the Middle East and Jordan through the continued investments. Regardless, 11% remained neutral on the issue, 7% disagreed.
Question 9: Do you the think the investments made by China concerning education, cultural growth as well as the economic development may prove beneficial for China in the long run?
Table 9: Response to Question 9
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||55||150||37%|
|3. May be||38||150||25%|
|5. Strongly disagree||10||150||7%|
Figure 17: Statistical representation of Question 9
(Source: Author’s creation)
The development and establishment of Chinese cultural centres in Amman, Jordan, demonstrates the efforts by China to expand their culture into other countries as well. Furthermore, investing in education, thereby providing scope for improving the employability of the youth of Jordan can be ascertained through the investments of China. 60% of the total sample size had agreed with the question, while a major 25% remained neutral regarding the issue. In addition to that, 15% of the respondents had disagreed that the increased investments of China may not prove beneficial for them in the long run.
Question 10: Do you think China along with Jordan plays a key role in mitigating certain issues such as the Palestine-Israel issue or the Syrian refugee crisis?
Table 10: Response to Question 10
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||69||150||46%|
|3. May be||25||150||17%|
|5. Strongly disagree||4||150||2%|
Figure 18: Statistical representation of Question 10
(Source: Author’s creation)
76% of the total respondents had agreed that China plays a crucial role in mitigating Middle East issues, such as the Palestine-Israel issue, along with the interference from Jordan. 17% of the population remained neutral of the choices, while 7% of the population disagreed. Furthermore, China aiding Jordan in the Syrian refugee crisis had been a well-known incident, thereby validating the response of the population.
Question 11: China has been investing in Jordan’s renewable energy sources as well. Would you say there is a likelihood of China being able to harvest such energy?
Table 11: Response to Question 11
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||69||150||46%|
|3. May be||12||150||8%|
|5. Strongly disagree||2||150||1%|
Figure 19: Statistical representation of Question 11
(Source: Author’s creation)
It has been a common question going around the globe, regarding the intentions of China while funding some of the major renewable energy resource plants across Jordan. In addition to that, getting through to the Middle East for resources, such as oil may prove beneficial for China. 90% of the chosen sample size agrees with the question, while 8% remained neutral on the issue. 2% disagreed that China may not yield the output of the energy resources that it has invested in.
Question 12: Though America has been providing military aid to Jordan, China has been providing aid in other regards such as socio-economic as well as cultural development of Jordan. Do you think the provision of military aid to Jordan would have benefitted China in the long run?
Table 12: Response to Question 12
(Source: Author’s creation)
|Options||Number of respondents||Total number of respondents||Response frequency|
|2. Strongly agree||39||150||26%|
|3. May be||64||150||43%|
|5. Strongly disagree||8||150||5%|
Figure 20: Statistical representation of Question 12
(Source: Author’s creation)
U.S. and China have both been extended friendly relationships and alliances with Jordan despite the ensuing political instability in the neighbouring countries. Furthermore, the extension of military aid by the US has been an added step, leading to people wondering whether this may affect the economic cooperation between China and Jordan. However, this matter remains debatable, while 43% of the population agreed. Another 43% remained neutral, while 14% of the population had disagreed.
The importance of a great analysis for any kind of research work done has been stated in this paper already. For further specification one can consider the analysis of any research to have a qualitative stance to be able to generate clear and specific knowledge regarding the various ideas associated with the research . The qualitative research for any study is the primary tools for explaining the topic to be discussed in details. The qualitative survey is a very significant tool in term of understanding a few things, which is associated with research of any kind. To have proper insights into various problems and to understand aspects like the motivations, opinions and the underlying reasons for research the qualitative analysis is significant . As stated, it not only helps to clearly understand a certain problem that is affecting the proper progress of research but also gives a chance to make ideas or form hypotheses so that scope for the quantitative research may arise.
Analysing qualitative prospects of a certain research paper helps to produce and well as processes various steps of explanation, interpretation, and understanding. These aspects are based on the topic of the research as well as the situations and the people who have been included in the research as a primary source of information . The data collected from these sources in the form of investigation or interview provides the necessary equipment for legit research, and the data is then analysed keeping in mind the changes happening in the contemporary world. The paper is based on a very crucial matter of global significance and therefore, requires the absolute and precise collection of data from various sources. These sources can be individuals who are part of the situation and affected by it in some way or the other. The topic that is discussed here is the economic relationship between Jordan and China and the implications or influences that this newfound relationship has brought upon on the other countries of the Middle East . As the issue here is not only an economic one but has multidimensional aspects, it can be discussed under social and political issues as well. The interview is conducted to understand clearly the notions related to the topic of discussion . A total of eight participants are asked questions regarding the aspects of the link or the complications of the process, and they have responded in different ways . While two of the interviewees were the managers at certain Chinese organization, two were managers at another company of Jordan. Two more employees of managerial ranks from the Middle Eastern states were included, while two other spokespersons from the Chinese and the Jordanian embassy respectively took part actively for that formation of a specific result or conclusion.
|Participant 1||Manager of the Chinese firm|
|Participant 2||Manager of the Chinese firm|
|Participant 3||Manager of a Jordanian company|
|Participant 4||Manager of a Jordanian company|
|Participant 5||Manager of Middle Eastern organization|
|Participant 6||Manager of Middle Eastern organization|
|Participant 7||Spokesperson of the Chinese embassy|
|Participant 8||Spokesperson of the Jordanian embassy|
Question1. How do you think the country Jordan has gained from the partnership?
|Participant 1||It has been said that Beijing has shown interest in the expansion of its commercial sectors in the country of Jordan so that the companies involving infrastructure and designing will be able to survive successfully in a land where completely new infrastructure is important.|
|Participant 2||The resources of mining of phosphate that China lacks are found in abundance in Jordan. The use of such resources will bring great economic value in the market of the world, and the world economy will see the rise of a newly developed economy, which is Jordan along with the established economy of China.|
|Participant 3||Jordan has seen a huge reformation and development in the sectors of infrastructure and management. The collaboration has made a huge impact on the transportation system of the country. Roads were made with advanced technology, and the transportation has improved because of that. Jordan has evolved as a country with one of the best systems of transport in the world after the collaboration.|
|Participant 4||The relationship between the two countries resulted in the amalgamation of companies and the arrival of new companies all over Jordan. The issue of unemployment was met with success and mitigated to an extensive level. There is a possibility of it being carried on in the future as well, which will help the people of Jordan rise out of their poverty level and the country will slowly move towards stability.|
|Participant 5||The collaboration allowed new companies to set up business in Jordan and therefore, the need of workforce increased in very less time. Jordan now could employ workers from foreign lands and into their work fields so that the progress does not face a hindrance of any kind.|
|Participant 6||The Belt and Road Initiative taken by China helped the country to get into the interiors of the Middle Eastern nations and China managed to gather more scopes from these projects and plans for further investment and further expansion. The MENA region has already been invested in and was bring great profits to China because of its rich availability of resources. The developing regions were also gaining from the technologically advanced nation regarding building the nation.|
|Participant 7||The US has involvement in countries like Iraq, Iran, Syria, etc., which is a military intrusion. China has no such aspects, but economic connection only. This makes China a country that can be trusted more and people feel free to accept it as a part of their country readily. The population of Jordan were more acceptable of China, and that helped the country utilize the human resources of the country as well who had education o subjects like ICT but no place to incorporate it. China, on the other hand, had the companies but required more people to run it and with proper training, these people joined them.|
|Participant 8||The socio-economic and well as the socio-political environment of Jordan improved. Religious riots form a part of Jordan still, but social problems of poverty, unemployment, lack of shelter, lack of education and unavailability of proper healthcare systems in the country were mitigated to a great level and pushed the country towards a better and brighter future where one could dream of a stable and constant economy.|
Question2. How far do you think is the effect of the newfound relationship on the Middle Eastern states?
|Participant 1||China has kept the options for further expansion in the Middle East open by building the Belt and Road Initiative as well as the Silk Route, both serving as crucial points of focus and entry into the other parts of the countries.|
|Participant 2||Projects and plans for the reconstruction of Syria have been initiated by China along with the government of Jordan to reinstate the refugees to their own country and start a commercial hub in Syria as well.|
|Participant 3||Egypt has already been an area of greater investment for China and will continue to be so if their internal issues can be mitigated.|
|Participant 4||China has invested in huge amounts in the country of Jordan as it serves as a cross-road to further progress and also is the point of entry into the Levant.|
|Participant 5||The Sino-China relationship is already a bilateral cooperative stance, which promises to help all the parties involved and it can be counted upon for further investment as well as improvement in other countries like Palestine, Lebanon, etc.|
|Participant 6||China has initiated plans to reinstate peace in Palestine and Israel as well.|
|Participant 7||China has great expectations from the MENA region and holds it as a crucial tool for investment purposes.|
|Participant 8||Jordan was able to tap into the resources of Syria because of the civil war there, and now China can utilize it. However, the countries were responsible for giving shelter to thousands of refugees as well for countries like Syria, Palestine, Iraq, Israel, etc. And gained acceptance in their economic field as well.|
Question3. What do you think has been the driving force for China to invest millions of dollars into Jordan?
|Participant 1||The companies in China have advanced technologies but have no areas to apply it in. Jordan will serve as that region where this vast industry can be expanded with the possibilities of success is what is expected. Therefore, it is regarded as a project where profit and success are obvious. It can be generated in great amount if the investment is carried on for the right amount of time and in the right direction|
|Participant 2||The developed country Chin has a notion, which is never to get involved in the internal affairs of a country. That is why it can be said that the economic evolution of Jordan through China will be positive. When the impact is positive, it will bring rewards to the Chinese firms that employ both time and money into Jordan.|
|Participant 3||China will be able to buy products and resources from Jordan at lower prices and easily as well because of the collaboration between the two countries. That is a huge economic point of advantage for a country seeking chances of growth and expansion rapidly.|
|Participant 4||Because of the free trade policies, the barriers faced by China to do business into the Middle Eastern states earlier have been removed, which is not the case for other countries seeking entry.|
|Participant 5||The possibilities of earning more revenues from the countries of the Middle East and especially Jordan increased to a great extent and will continue doing so in the future as well. With the current picture of Jordan, which shows that the country is facing elaborate success and economic stability, China as well can earn profits from its trading ventures. These revenues earned will be able to strengthen China’s economic hold in the world market effectively as well.|
|Participant 6||The case-flow between the countries has become easy and substantial, which is a positive effect on China as well as Jordan. While Jordan achieves economic maturity, China gains further control of the open market and benefits from it.|
|Participant 7||Jordan has achieved great benefits from the collaboration. The bilateral cooperation and collaboration, however, has helped China as well to gain a lot of profit from the exchange of economy. The exchange of currency between the two nations has provided opportunities for better international trade standards for China.|
|Participant 8||China has gained the chance to implement tools to consider further options of expansion into other Middle Eastern nations as Jordan acts as a gateway to those places. That will enable China to focus on positive economic reinforcements into other countries where the natural resources are infinite and will bring in more financial growth.|
Question4. According to you what is how the social and cultural prospects of Jordan have changed due to the collaboration?
|Participant 1||The educational aspects of Jordan have improved as China have invested in the country and provided better-equipped schools with modern infrastructures. These schools can provide education, which will help the youth of the country secure jobs in the fast-changing economy so that they can contribute to the development of the financial condition of the country.|
|Participant 2||The competition for China has decreased effectively as the Jordanian population has accepted it in abundance. This is the same for Jordan as well. Egypt is the only other country where the investment by foreign parties is more than that in Jordan. But with the rapid progress of Jordan and the new possibilities it upholds for countries like China and the US, it will soon become the hub for business, and that will bring social peace.|
|Participant 3||The government of Jordan has been able to open their gates for the refugees from Palestine, Israel, Iraq, and now Syria. This was made possible by the involvement of the Chinese business companies and the policymakers of China. However, this social relationship has enabled Jordan to continue business ventures into those countries, which will soon turn out to be a successful business relationship for the country and help it come out of its debts completely.|
|Participant 4||The roads and railways of Jordan have seen huge reformations and improvements with the involvement from Chinese multinational firms who have advanced technologies, which they used to provide better systems of transport for the people of Jordan so that both the social and financial aspects of Jordan improves.|
|Participant 5||The improvement of the transportation of the country Jordan helped it to improve its tourism sector as well. The tourism areas of Jordan and the business related to it brings huge amounts of profit and has become one of the most famous aspects of the country as it attracts millions of tourists every year and the economy gets a huge boost from it.|
|Participant 6||The development of the transportation and tourism sectors have provided a chance for the people of Jordan to find employment on a regular basis, and the civil unrest for the lack of employment in the country has been reduced gradually and promises to do so effectively further in the future.|
|Participant 7||Collaboration with countries such as China and the US has helped Jordan improve on many levels. It has helped the country to mitigate poverty and benefitted the country to survive huge social problems.|
|Participant 8||Jordan also has the advantage of access to the export financing, which is a surplus chance for the country and has helped it to manage social risks like religious protests, which is an issue of the problem in Jordan where people from different religions live together.|
Question5. Do you consider free trade and open market as the future of the world economy considering China and Jordan as examples?
|Participant 1||The commencement of free trade has enabled both China and Jordan to get reduced tariffs and taxes, which are applied while conducting business in the global market or any foreign land.|
|Participant 2||The business climate of Jordan has become dynamic in a few years as the developed countries are taking greater interests in the resources of the land and investing millions of dollars in business and infrastructure of the country.|
|Participant 3||Although there are greater chances of improvement, there is also a huge issue of the natural resources of Jordan getting diminished rapidly. The MENA regions have to be kept under observation so that China is unable to take undue advantage and exploit it.|
|Participant 4||The open markets allow developing nations like Jordan to have greater diversification and access new areas of commerce and join more markets of the world.|
|Participant 5||As the chances of employment increases with the introduction of global business firms in Jordan, the working environment and the conditions become worst.|
|Participant 6||The free trading concepts nations to engage in innovations.|
|Participant 7||The collaborations based on economy bring social cooperation as well. The countries involved in a business deal mutually gain from one another and form ties to improve stability.|
|Participant 8||The concept of equality improves as a developed nation brings that notion into the regular prospects of a developing nation where equality is almost a utopian concept.|
The economic condition of Jordan has been very dreadful especially since the Syria crisis; the economic crisis has developed at a huge rate, but they have been receiving a lot of support in this regard. In this crisis, a lot of foreign countries stepped in to help Jordan so that they can recover from the Syria crisis. China turned out to be a great help for Jordan in this regard as they have been helping to increase the growth of the economy in China immensely. They have signed up many modifications and cooperation . It has been essential for both the countries to develop this cooperation as through this China got a scope to enter the Middle East and Jordan found new investors who would take away the poverty from Jordan. Jordan signed up economic and transformational cooperation with China. The cooperation between the two has benefitted each other immensely because there has been evidence of the improvement in the transportation sector where there has been a growth of 12 per cent in a year. Due to these kinds of investment more scopes are opening up and they have been willing to invest further with each other. It has been predicted that China is looking for more scopes to invest in the infrastructure of Jordan because that has been helping China to open more gates of exploring within the Middle East culture . Both the countries have been looking forward to the Belt and Road Initiative which would not only develop the ties between Jordan and China, but it will also help in further development of Jordan. This is the Silk Road Project generated by China regarding involve the Asian Countries which would help them to create a network. Tying this bond with Jordan has helped them to create a great influence on global affairs. For this reason, they wanted to enter Jordan as this is a very needy country and has a very strategic location. Jordan is a country in the Middle East who has been trying to make peace with all the surrounding countries, and as a result, they would be able to invest in the other countries as well . However, the main potential in Jordan is the Human capital, and that has been a prime reason as there are a lot of scopes for development and employment, but they weren’t being utilized properly. After the refugee crisis Syria also ended up being a part of the country so investing for further development would turn out immensely beneficial.
Figure 1: Educational Aspects of Jordan
According to the different researches that have been conducted it has been seen that the population of Jordan has been increasing and so are the rates of living but to suffice those there wasn’t any employment. So the population has been extremely satisfied with the interference of China and so were the employers. The trade has deteriorated, but after the new agreements, they are envisioning a great development in the trade to bring the resources into Jordan . China has been keen on developing the power plant construction contract which would help Jordan to generate electricity through the conversion of Oil Shale. This has been an attractive contract signed so far, and this contract has been turning out to bring a lot of self-generated resources for Jordan which would make them independent. China has been looking to invest further in the railroad projects which would bring aid to a lot of countries and not only to Jordan like Egypt. The development of the Jordan railway network would not only benefit Jordan but also would benefit the regional railway network of the Gulf Countries. The public transportation has been a great issue in Jordan, but by the involvement of China, there has been evidence of improvement of growth in the economy . China has been interested in incorporating the Chinese culture within the Jordan kingdom which would make their trade and business a lot easier. For the future, China has been interested in construction a University which would bear the culture of both the countries. That cultural centre would help in teaching the Chinese language to the civilians to make the growth of the Chinese industry more stable in the Gulf Countries. So construction is already being made for a Sino-Jordanian university. The ambassador has proclaimed that this university would develop and understanding between the two countries especially among the younger generation. The Chinese government are planning to develop the cultural and health sectors of Jordan which have been quite neglected by the Jordan government due to the lack of funds . China is standing out to be a very important factor in Jordan as the Jordan government is keen on making China their prime source for the development of economic, political, cultural, transportation, infrastructural and tourism sectors.
The basic effect that sustained in the region of the Middle East countries has been its economic growth. The cooperation between Jordan and China has helped in the development of infrastructure in the Middle East region. The countries adopted new ways of technology for the growth of its industries. The growth of industries has been a great effect on the economic and social structure of Jordan and the Middle East region. This improved the standard of living of the people in this region. The increase of the industries has generated employment in Jordan and the Middle East . The Chinese industries have a great effect on the growth as they supported the growth of new technology in the Middle East. According to the Chinese the research government has shown a great effect for the development of the trade route in the Middle East and this helped in expanding a better way of trade. This window helped the political and economic structure to grow at a rapid rate in Jordan. The new strategies and policies are adapted to create a trade channel and key destination of commodities in this region. This positive effect has reflected a better outcome of the Chinese political structure and policies in the economy. The Middle East countries are mainly dependent on the crude oil and petroleum industries been helped by China to expand globally. The increase of this industry has a great effect in the expansion of the economy in Jordan . The Chinese industries have developed new machines and technologies in the development of the industries of the Middle East. The employment generation has a great impact on the growth of industries. China has helped the enhancement of the economical and industrial The regional economic stability and development has enhanced the policy of the two countries in a new way. This infrastructure of Jordan has developed in a greater way from before. The guidance and planning of China has developed a better way of evolving in the field of trade, industry, and economy . The generation of projects has signed a long term agreement in trade and investment. The Chinese government has invested a huge sum of economy to support the economic stability of Middle East. The development of constructive mechanisms and development of technological cooperation has helped in the growth of industrial sector in Jordan. The trade committee is set up in reflection to the trade window in the Middle East and China. The construction of special economic zone to promote the economic transformation of the region is essential. This has helped in the generation of economic stability in the Middle East region and it has been implemented by China. The long term relation between China and Jordan has reflected a great interest in the economy of the Middle East region and different countries are attracted in terms of business and investment. The production of commodities with a new way of technology with a lower cost rate has affected the economic structure of this region . The oil and gas industries in the Middle East region have developed with the equipment generated by China. The basic economy is generated by oil and gas in Middle East and the development is needed in this sector for the growth of the industries. The mutual platform is generated by the two countries to generate a gateway of trading route in this region of the world. This route has been helping the other countries in communicating with trade of the commodities and sharing of ideas. The basic effect on the development of China’s foreign trade with the Middle East with import of manufacturing goods and exporting of oil has improved the economic structure of this region. In the field of development of Jordan’s economic structure China has played a vital role. This corporation of the two countries has generated a great effect on the growth of industrial structure around the globe . The signed trade agreement in regard to trade and economic development has shown a positive effect in the Middle East region.
Figure 1: Employment Rate in Jordan
The ties that have been tied between Jordan and China have been witnessing a lot of improvement throughout the whole involvement of the both countries. For this reason, they have been interested in further strengthening the ties with each other. Both the Chinese and Jordanian government has been looking forward towards the collaboration with each other; they believed that there are a lot of fields open for developing the collaboration. Both the countries have been very enthusiastic in the diplomatic ties they had formed and they have been taking up every opportunity to benefit their respective countries. China has benefitted Jordan immensely in the fields of health, water, infrastructure, and energy . They have been looking forward to develop the culture of both countries through the incorporation of both cultures in the next generation. China has been bent on constructing a university for the benefit of the further generations. The university would be teaching the cultures and norms of China which would help the Jordanians to understand the form of trade and can improvise the trade relation with the both countries. The cooperation can only be enhanced with the understanding of the need that has been developing and how to satisfy those needs equivalently.
The need for economic globalization and developing a multi-polar world has been heightening and to attain that need the cooperation and collaboration between different countries have been emerging. The studies that have been conducted on China and Jordan cooperation are reflecting a knowledge that both the countries have been eager in enhancing their development strategies as well as have been eager to promote innovation which would help them to fasten up their transformation of economic status. When foreign trade is entertained then a lot of factors come on surface, one of the prominent factors are geopolitical factors, regional turbulences, non-traditional security and also other global challenges. Jordan and China have been facing all these challenges and factors equivalently . Jordan has been facing regional turbulences because of the protests from the surrounding countries have been quite common. Jordan have been planning to overcome those regional protests to make their trade with China more influential. They have been making peace with their surrounding countries like Israel so that they can carry on their foreign trade more smoothly. These foreign trades make the country’s security more vulnerable. It is quite similar for Jordan, the security has been vulnerable of compromised due to these foreign trades not only with China but also with United Kingdom and United States. The weaknesses of Jordan are way more exposed to the foreign countries. However, these foreign trades have been making Jordan stronger from the within. China has been the world’s largest developing country and their aim has been to attain national rejuvenation which leads to the nation’s stable harmony, strength and prosperity as well as advancement of the country. To attain these, they have been developing strategies all over the world to strengthen their international relations. Jordan has been situated within the converging area of African and Asian countries. Arab has always been integrated with several diversities which the whole world has been eager to explore always. The Arabian countries have been integrated with cultural and religious diversities . Jordan is a prime country among these who have been making foreign deals to retain peace and stability as well as incorporate international and regional affairs. Both China and Jordan are looking forward to develop a cooperation which would make them have a peaceful cooperation which would sort out any kind of disruption which would come in the way. Both the countries China and Jordan have aimed in rejuvenating their countries based on shared goal and mission. Both China and Jordan have been pertaining in a development stage which they wish to fulfil in the near future. The obstacles that China and Jordan have been facing regarding their trade and cooperation have not been resolved yet. The war in Syria and Iraq has impacted their trade at a high rate but they have been overcoming that and continuing their trade. The president of both the countries has been keen on developing the cooperation up to such a limit that their cultures would be integrated within each other’s countries .
Figure 1: GDP and Inflation Rate
According to the studies that have been conducted it has been seen that the China and Jordan policy has been at a very strategic level where China wants to keep the relation between the two countries at a win-win state. To avoid any kinds of disruption in their trade they plan on sticking to their long-held principle and improvising those principles. To keep this support china has been providing a great support to the Arab leagues. China’s aim has been to develop Jordan and its regional countries nuclear weapon free and also free from WMD. The positive input from Jordan towards the international affairs has made China more eager to cooperate with Jordan. China and Jordan plan on developing an all-round manner in accordance to the strengthening of the economy of both the countries as well the different infrastructures. They both plan on helping each other in the social cooperation like the education, health care and also help in developing the science and technology. China and Jordan plan on sharing a multilateral and bilateral cooperation which would promote the development of agriculture of arid zone, irrigation with water saving policy, food security, and also animal husbandry.
4.6 The benefits from the economic cooperation between a high economic country and the lower economic country
Whenever two parties gets engaged in a business deal of some kind where they exchange things of value, there is always a clause, which explains that either the parties in one way or the other gets benefitted from the deal. The countries of the world often engage in various kinds of collaborative deals and these collaborations form the basis for growth of world finance. The world economy has strengthened after the countries have learned to offer better scopes for the orientation of the policies of issues of long-term. These issues are reoriented in order to help the progress in terms of environmental, social, as well as economic dimensions of the world and lead it towards a sustainable development .
Figure 1: Silk Route Map
However, the economic activities around the globe are not shared uniformly or equally between the countries engaged in the world market and the countries that takes part in the exchange of world economy . The recent deeds in terms of the growth of the world gross product show that the growth has been possible because of the effective growth in various developed countries of the globe. Although, the improvements happening in the countries like Brazil, Argentina or Nigeria has helped them to come out of recession and their economies have got a boost, which as a result has lead to a rise in the global growth rate between the years 2016 and the year 2017 . There still lies a difference in the level of economic and social growth of the developed nations from the developing countries, and that is because the prospects of economy, which has been gained is never distributed amongst the countries in a fair way. The uneven distribution of the economic gains between the various regions and parts of our world have not yet improved the power so as to regain a growth of economy that is healthy. Finally, the possibilities of getting involved in a deal that provide a weak investment as well as a low rate of productivity affects the global finance in a worse possible way .
The countries of the world whether a developed one or a developing one have gained faith in the idea of a collaborative economic font and have opened up their internal markets for the world to take part. These have lead to the discovery of new products and resources as the different countries with different business origins work together incessantly for the growth of finance. Therefore, even though the financial volatility is low and the fragilities of the banking sector have reduced, the commodity sectors have recovered and solidified the macroeconomic outlook of the world, the investment conditions have improved generally. All these have lead to the markets that are emerging to have tremendous support for the flow of the capital to rise continuously and have made lending through cross-borders possible. These have provided conditions for the growth of credit in the developing as well as the developed countries . The uneven distribution of the economic gains prevents the economy of the world to meet the goals of sustainable development, which is a barrier that results in various developing countries getting a huge setback in terms of average income.
There have been a rise in the level of geopolitical tensions all over the world, which has lead the business heads of the world along with the policy makers to move towards policies that are isolationist as well as unilateral . There has been an abundance of global liquidity for a long time, which has made borrowing costs low resulting further in the rise of debt levels globally as well as marked the arrival of a financial imbalance. While the developed countries are working in unchartered territory, developing nations are vulnerable to the aversion of risks and withdrawal of the capital suddenly. However, reorientation of the policies and a global collaborative font has helped to increase the diversification in the economy globally. The developed nations like China and the US have established economic relations with countries like Jordan, Egypt, Iraq, Iran, Syria, Lebanon, the MENA region and many more. These deals or business contracts that the companies of the developed country have engaged in with the companies of the developing countries have both short-term and long-term aspects. The policies for the short-term help improve the living standards of the people in the regions of deprivation. The long-term goals or policies addresses various important things like inequality in the availability of opportunities, investment in the development of early childhood, education, access to proper healthcare has been broadened and the capital investment in the building of roads in rural regions as well as providing electricity .
The confidence of the developed economies has strengthened in the emotions of the economy after the financial markets have been stabilized involving the developing countries as well. The major economies of the world or the developed nations are enjoying an upturn, which has been synchronized regarding the growth of economy because of the cooperative aspects between the developing and the developed countries . The conditions for the investment of capital have improved, which has made the rise in the flow of cash possible to the emerging markets of the developing nations. The credit growth has developed in the economies of both kinds of nations with the cross-border scheme of lending. Investments that are non-residential and private showed resilience for the developed nations and capitals lend to mining exploration as well as shaft or wells rebounded. In the developing countries, there has been development if the commodity sectors, which has shown a visible shift of income from commodity exporters to the importers of commodity. Therefore, to conclude the prospects of benefit for both the developed as well as the developing nations when they form a relationship can be regarded as the follows:
- The improvement of the digital and basic infrastructure for the developing nations is a beneficial point.
- Improvement in politics as well as business ethics for both improves the chances for positive economic enforcement .
- Health and education related schemes for the developing nations.
- Social protection, as well as employment options for the developing nations with emerging economy, is provided.
- Availability of infinite resources in forms of natural oils, gases, etc. as well as labour for the developed nations.
- Productive employment of the investment by the developed nations because evolving economies will generate more profit in the days to come .
The findings and analysis outline the overall results, found upon studying the collected data from both primary as well as secondary sources. Data gathered from secondary sources were analyzed qualitatively. The topics covered include the positive outcomes of the economic cooperation between China and Jordan, the economic prognosis between Jordan and China. In addition to that, the future cooperation as well as the role of China in solving issues and problems related to Jordan and the Middle East, thereby gaining the trust of Jordan, was discussed. Moreover, the benefits of the economic cooperation between two countries of varied economic growth, citing the example of China and Jordan was mentioned as well . It may be stated in this context that the data and information collected for the qualitative analysis have been gathered from secondary sources, including journals and published articles.
In addition to the aforementioned qualitative analysis, primary data analysis was performed on the data collected through the interviews conducted with the 8 participants as mentioned before. The participants include managers from a multinational firm operating in China, Jordan and the Middle East. Additionally, 2 other participants include the spokesperson from each of the embassy. The interview was conducted with the spokesperson in order to gather accurate and sufficient evidence regarding the role of the economic cooperation between Jordan and China and the impact that the activities have on the Middle East region . A questionnaire as prepared for the interview, in order to gather the qualitative data. Furthermore, a quantitative analysis was performed on the data gathered from primary sources, through a survey conducted with the employees of the multinational organizations operating in China, Jordan and several countries of the Middle East.
A separate questionnaire had been prepared for conducting the survey, in order to gather the quantitative data. While the questionnaire for the qualitative data had open-ended questions, close-ended questions were asked for the collection of quantitative data. It may be mentioned in this regards that the questionnaire involved questions related to the political situations in and around the Middle East and Jordan . It was found that the literature derived from scholarly articles and journals had been valid, as the opinions of the respondents of the survey had established the same. The respondents had mostly agreed or remained neutral for most of the cases. For instance, most the respondents of the sample size had agreed through the several investments made by China, China intends to gain energy resources from Jordan. In addition to that, it was illustrated that the Middle East region is subject to China’s interest with regards to the oil resources, which may be of utmost importance for China as fuel. The facilitation of the business relationship between the countries has not only encouraged trade, but has also led to cultural, social, educational as well as economic improvement for Jordan, resulting in a mutual benefit for China in terms of energy resources and a market for its products .
This paper has focused on detailed research, which has been conducted on a serious issue that will be affecting the future of certain nations and their people. The section above has, therefore, surveyed properly to provide specific details of the matter, which is the objective of the research. The economic cooperation between China and Jordan has a long-term effect on the two countries involved as well as the Middle Eastern states and the US too . A proper evaluation is required to understand this point as it will change the way of business for these two countries. The data is collected from primary and secondary sources, which acts as the basis of information for the discussions to be carried on further down the paper. The surveys have been conducted with the help of questionnaires, and the answers pose as the conclusive evidence for the state of affairs for the two countries Jordan and China .
There is two detailed analysis that is presented in this paper that represented the popular answers and responses of the people who get directly affected by the newfound relationship between the developed and the developing country. Employees of multinational firms from the companies of China, Jordan, and the Middle East as well were interviewed to know their perspective of the economic relationship and to find the actual impact on these countries . The quantitative and the qualitative analysis here are analysed and then discussed to find the ultimate result, which gives a clear idea of what the structure of the nations concern their economy.
The questions, which have been asked, are quite descriptive and answers important queries. The condition of employment in the country of Jordan, as well as the Middle Eastern states, is valued upon the commencement of the relationship. Projects and plans taken by China like the Belt and Road Initiative and the initiation of the Silk Route are other subjects of discussion and query, which enables the research to have a fruitful conclusion . Through the analysis, which has been conducted above some important observations are made that shows what has been the positive outcomes of the bilateral relationship. The discussions that have been conducted as the paper proceeds towards a conclusion also allows addressing problems that need to be mitigated for the stability of the economy in Jordan by getting over its huge amounts of debts. The findings show how China plays an active and key role in the social as well as political improvement of Jordan. It also provides significant evidence of how it affects the neighbouring states of Jordan like Palestine, Israel, Syria and many more . The effect of the collaboration on the education system, culture as well as the social life of the people of Jordan is invested as well. The response received from the people from the companies as well as from the embassies of the two countries initiates this discussion, which serves as an image for the future probability of Jordan and the Middle East.
The quantitative data presented in the findings section entails the overall conclusion arrived at, from the data collected through the survey. The survey had aided in assessing and evaluating the public opinion and experiences faced as a result of the China and Jordan economic cooperation observed. This research comprises surveying for quantitative analysis . It may be mentioned that the close-ended questions in the questionnaire had aided in demonstrating the public opinion of the relevant individuals regarding the impact of the economic cooperation of China and Jordan on the Middle East area . Furthermore, because of selecting random, purposive sampling, the validity of the data cannot be assured, but the experiences and opinions of the common individuals come into view. Questions have been asked regarding the increasing scope of employment and employability of the youth of Jordan, concerning the investment being made by China . It is to be taken into account, that the discussions in the articles, as well as journals considered for writing the literature review, demonstrates a link which may be implemented to establish stability and consistency between the collected data from different sources.
The questionnaire for the quantitative analysis dealt with significant questions related to the economic cooperation between China and Jordan. The sample population was asked of their opinions regarding a noticeable increment in the rates of employment in the countries involved, chiefly Jordan. To this question, 71% of the respondents had chosen to respond positively. It may be considered in this regards that the reason behind such a response may be attributed to the employment increase noted in Jordan after the establishment of the cooperation between the countries . In addition to that, it may be mentioned in this context that the survey had been conducted with the employees, employed under multinational organizations operating in Jordan, as a result of the economic cooperation established between China and Jordan.
Moreover, the investment of China in Jordan concerning several renewable resources projects signed to be started in Jordan. Furthermore, the startup of the multiple power plant projects in Jordan has been regarded as China’s strategy for entering the Middle East market . Additionally, China’s requirement for unlimited energy supply, and therefore catering to the requirements for mitigating the need for energy sources are taken into account in this regards.
Figure 1: Distribution of Syrian Refugees
Other questions were asked related to the increase in employment because of the implementation of the Belt and Road Initiative. It is evident that development requires labor, which may result in recruitment of workforce to accomplish the tasks. The initiative proposed by China involves building a route, being named as the New Silk route to go through the Middle East . However, for a road to go through the Middle East region, Crossing Jordan is essential. Hence, collaboration with Jordan is mandatory in this regards. Therefore, the progress in the work would require hiring individuals, which would lead to an increase in employment in Jordan. The rate of unemployment recorded in Jordan for the year 2017 is 39.76% . Hence, the improvement in the unemployment statistics is likely to go down as a result of the implementation of the Belt and Road Initiative . Furthermore, it is to be taken into account, that the survey conducted resulted in 79% of the respondents agreeing that an increase in the rate of employment is observed. However, 12% of the sample size remained neutral regarding the subject, while another 9% had disagreed with the statement.
It has been stated in the survey conducted that out of all the impacts visible in the economy, the number of positive outcomes has been noted to be more than the negative impacts. For instance, the investment of China in Jordan in the development of education among the youth of Jordan can be attributed to one of the major positive outcomes of the collaboration between the countries . In addition to that, the economic cooperation between Jordan and China has increasingly become prominent through the encouragement of trade and commerce. Furthermore, the provisions of ammunitions, as well as generous donations for tackling the issues persisting in the Middle East area, such as the Israel-Palestine issue and the Syrian refugee crisis, have been positive impacts on behalf of China. In addition to that, the investments in the power generation initiatives and the establishments of the renewable energy plants may also be regarded as vital positive outcomes of the collaboration between China and Jordan. This can be ascertained through the response generated from the 71% of the sample population.
However, the negative impacts can be highlighted through the disagreement with the statement by 14% of the sample size. The interest of China in Jordan can be primarily attributed to China’s energy or fuel requirements. Hence the investments in Jordan for the development and establishment of power plants costing billion dollars for the projects had been made by China. In addition to that, the financial aid for the Syrian refugee crisis as well as other matters of Middle East, such as the issues regarding Israel and Palestine, can be considered as a primary investment for gaining access into the countries of the Middle East region . Furthermore, China’s entry into the Middle East can be considered as a means to expand the market for the Chinese products which experience overproduction. Additionally, the resource-rich Middle East states are likely to be subjected to economic cooperation as well since it may yield fruitful results regarding gaining supply of resources.
Questions regarding the establishment and development of the New Silk Route through Jordan and the Middle East countries and its impact on the relevant countries had been met with mostly positive response. 77% of the respondents agreed that the development of the New Silk Route might prove effective in mitigating the issue of unemployment among the youth of Jordan, which had seen a high of 39.76% in 2017 . However, 16% of the sample size had remained neutral on the subject, not being able to decide the scope and the degree of impact of the economic cooperation between China and Jordan on the issue of unemployment. In addition to that, 7% of the population had disagreed that starting the work on New Silk Route would mitigate the issues of unemployment in Jordan and the Middle East.
Other questions have been presented to the sample size regarding the cultural impact of China on Jordan. Taking the establishment of the cultural centres in Amman into consideration, the intentions of China regarding the propagation and expansion of their culture and language into several other countries is reflected. However, the objective of involving the question was to identify the cultural impacts, if any had been evident in the place of work in Jordan and other Middle East countries . 81% of the sample size mentioned that there had been changes in the cultural impacts on the workplaces in Jordan as a result of the cooperation between China and Jordan. Furthermore, 16% of the population remained neutral on the matter, choosing not to comment on the subject. However, only 3% of the respondents said there had been no evident changes noticed in the workplaces.
Another question was posed for the sample size as an additional question to the existing subject for discussion, which asked for the response regarding Jordan being a gateway for China to enter the markets of Middle East. 64% of the sample population agreed with the statement. However, 28% remained unsure of the choices. On the other hand, 8% of the respondents had disagreed with the statement, saying that the economic cooperation with Jordan is merely for the development of both the countries . However, it is to be taken into account that the collaboration between an economically diverse and strong country, with another, which is less impactful, is generally for a vital purpose. Another subject that had been addressed in the survey conducted, considered the development of the market for the Chinese products, which already mentioned to be facing overproduction, and hence the sale of the products within the country and even the existing global markets cannot mitigate the matters of the overproduction of the goods . By the statement, 82% of the sample size stated that China had managed to create an effective market for its products. However, 11% of the respondents remained neutral regarding the matter, while 7% of the population disagreed.
Figure 2: Water Crisis Issues in Jordan
In addition to the matters above, the investments made by China and the benefits it may yield in the future for China had been considered. China had made several investments with regards to education, economic as well as cultural developments . Furthermore, investments for the development of hospitals and promoting employment in Jordan, to mitigate the issues regarding unemployment had been undertaken by China. It may be mentioned in this context that many of the respondents had considered the benefits that China may yield in the end. About 60% of the sample size agreed that China is set to benefit from the initial investments in Jordan, made with regards to the economic, cultural and other social reforms. However, 25% of the sample population remained unsure of the impact that the investments of China in Jordan may have in the long run . On the contrary, 15% of the sample size had disagreed with the statement, mentioning that no such long-term benefits for China are visible from the investments made for Jordan.
Initially, a question had been asked to the participants of the survey to consider whether the role of China in mitigating issues related to the Middle East had a certain value. However, another similar question was asked with a direct link to the existing challenges faced by Jordan in mitigating the issues of the neighboring Middle East region. A direct question related to addressing the Syrian refugee crisis as well as the Israel-Palestine issues was asked, and the participants were asked to evaluate the role of China in coming to the aid of Jordan for helping out indirectly in the Middle East matters . The indirect involvement of China in the matters of the Middle East has been the subject of speculation for some time across the globe. 76% of the sample size had agreed that the involvement of China with Jordan for mitigating the issue regarding the Middle East has a profound impact on the countries and the economic development as well. On the contrary, about 17% of the sample population had been neutral of the choices regarding the involvement of China in the matters of the Middle East. However, 7% of the sample size had disagreed as well.
Further questions to the sample size were related to the interest of China in investing in the Middle East regarding energy projects. Additionally, the existing progress and encouragement received from China about the development of several power development projects in Amman provide an insight into the requirement of China regarding energy sources . The questions had required the individuals to respond whether China was likely to be willing to harvest the energy that it had invested in billions of dollars. The majority of the population, conforming to about 90% of the sample size had said that China would be willing to harvest the energy resources it is so critically investing in now. Despite the scope for employment and economic boost that these projects pose for Jordan, it is regarded to be China’s primary objective to be able to gather efficient energy resources for catering to its requirements. However, 8% of the sample population had remained neutral on the matter, while only 2% had disagreed with the statement.
Finally, a comparison of the economic relationship between USA and Jordan, along with the economic relationship between China and Jordan has been evaluated in this aspect. It may be mentioned in this regards that several scholars criticize the role of China in providing Jordan with certain ammunition and firearms for military combat. However, the role of USA in providing Jordan with complete military aid is appreciated by several others. In this context, it is essential to understand the role and scope of China in this sector. Since China had been investing in Jordan since the past few decades; it is to be taken into account that receiving the provisions of military aid from the USA facilitates the continuation of the political relationship between Jordan and USA. About 43% of the sample size agreed that the involvement of China in the military, as well as the matters of warfare, would have yielded better benefits for China. However, another 43% of the sample population remained neutral, since the sample size could not comprehend the implications persisting in this particular case. 14% of the respondents disagreed since they believed that China had been making multiple contributions and investments for Jordan, with or without an ulterior motive. Hence, providing military aid is not regarded seriously in the matters of economic cooperation between China and Jordan.
From the conducted qualitative research, it is investigated that Jordan’s real growth is expected to gain an increase of a maximum of 2.5% in 2018. It has been reported by a review accompanied by the European Bank for Reconstruction and Development (EBRD) that the association between Jordan and China has demonstrated a substantial increase both in social and economic aspects. However, as per the forecast of 2-018, the Jordanian government’s predicts that over 3% revenue increases within Jordan’s economy. Jordan’s economy has witnessed a slight increase in 2018, outgrown much by the development and progress within stronger private consumption and growth in private enterprises. Jordan with its association with China has outgrown in technological and financial aspects so much so that a rising population of refugees drives it. Thereby, it can be said foreign employees are accumulating in search of better job prospects led by growth in trade and small-scale sector. Success has risen in tourism sector providing higher revenues . With collaboration in trade, higher revenues are earned from the sale of phosphates and particular mining products. Jordan and China signed several agreements undersigned by Memoranda of Understanding (MoU) in developing air, water and trading services. The air service agreement help in regulating air services that cross-connects China and Jordan. Establishment and expansion of flights in numbers accompany this. Besides, trading and cargo carrier are also to be established based on the operation of reight and mail. To strengthen economic ties, two bodies considering Jordan Chamber of Industry and Arab Businessmen Forum came into the front. However, a pledge was being made between Jordan’s foreign minister and his China’s Body of government ensuring stronger bilateral relations. Both the government bodies set against in building fields of cooperation by incorporating foreign and national investments. From the research, it is examined that China has become the largest and strong commercial partner of Jordan.
It is to be noted that the survey conducted for the quantitative data had not been able to provide particular and specific insight into the reasons and implications behind the social conditions, as well as the choices of the sample size. Since the questions for the quantitative analysis were close-ended, no scope for an explanation of the choices by the individuals remained. Therefore, the researcher had to finish the investigation and evaluate the response of the sample population, along with determining the probable causes of the answers.
The analysis, which has been provided in the sections above represent the issues that affect the entire population of Jordan, the business organizations of China and the people and society of the Middle Eastern states besides Jordan because of the economic relationship that has formed between China and Jordan. This paper presents clear understandings of the issues, whether positive or negative and provides a possibility, which the future upholds for the countries present in the deal. For a proper understanding of a matter as serious as this one, the research has provided for a quantitative as well as a qualitative analysis, which gives the secondary as well as the primary data regarding the situation of the two countries, Jordan and China and concerning the neighbouring states to Jordan . The qualitative analysis is based on the primary resources which provide the data so that the research can have a legit belonging regarding the issue that it discusses. Therefore, through an interview conducted on eight people from China, Jordan, and the Middle East, this paper focuses on the responses of the entire population of these countries that are being offered by the chosen representatives. The point of discussion is the effect of the involvement of China in the economy of Jordan the direct responses from the people of these countries provide a clear stance of what the actual state of the nation is after the collaboration. The people who have been interviewed were given a questionnaire where they were asked five crucial questions that would justify the investment of the Chinese companies into the developing country Jordan.
Figure 1: Jordan and its Neighbours
The five questions asked to pose as the key, which links the influence of the deal to the people of Jordan, China, and the states of Middle East. The answers, which were provided by these individuals have some similar and some varied responses regarding the economic cooperation . However, from the responses, it can be stated that China has offered a huge chance of great development to Jordan and will continue doing so if Jordan poses as the land filled with opportunities for China to earn huge revenues in the future. It is a two-way street and both the countries involved needs to have equal amounts of benefits. When one sees that the other is taking undue advantage of their position, the partnership formed can end. The benefits gained are to be measured over time, value and their ability to help the growth of a nation. Therefore, these benefits have to be equal because there is no point in investing in China if it cannot earn great amounts of profit from Jordan.
Similarly, for Jordan, there is no point in providing China with resources whether tangible or intangible, if China cannot help them to turn the condition of their economic structure. The collaboration was based on this one condition, and the success of the cooperation relies on the success of the condition it aims to serve. The answers, which have been noted from the elected individuals provides a comprehensive view of how and to what extent the condition has been met by the government, business persons and the policymakers of both the countries.
Figure 1: Types of Industry in the Middle East
The questions inquire about some fundamental issues that either aid the countries or ail them in some way. These queries have social, cultural, political, as well as economical bases and frame the paper properly so that the research work can achieve the aims and objectives in a clear and concise way. The questions comprise of the benefits that Jordan gained from the collaboration and even considers the advantages that China received because of the deal. The questionnaire asks the individual persons, whether the managers from the different organizations of the different countries or the spokesperson of the embassies about the social and cultural development of Jordan, which was achieved by the government as well as the population of the country after the application of the influence of China. The questions concern the negative and the positive effects of the relationship on the other Middle Eastern states, and lastly, it gathers information from the interviewees on the success of the application of free trade and open market by considering China and Jordan as examples.
The questions might seem simple to ask, but the formulation of the results from the answers received is a difficult task to perform. It has various implications and is not at all a lucid concept or subject . The answers were different for different questions and as it came from different individuals who have been affected by the whole phenomenon in completely different ways. However, one can easily say that the effect of the collaboration on both the countries has been mostly positive by far. Although, it cannot be as easily said about the other nations of the Middle East as the extent of influence on them varies from that of Jordan. To consider Jordan and China only, it can be stated that the investment made by China on the country with an emerging economy, which is Jordan will be fruitful and a profitable investment that will bring China millions of dollars as revenues if the whole operation is carried on for a specific amount of time. The responses by the different individuals provide a better understanding of this point and also have the feature of providing positive solutions that can be reinforced in areas that lack the chances of profit . From the answers, received one can gather the data, which are the voices and the reaction of the entire nation of China as well as of Jordan. The policymakers and the business organizations that are responsible for the collaboration and are the part of the cooperation can find the answers they are searching for regarding the expansion of investment. The interview or the qualitative analysis is, therefore, a critical tool when one decides to understand the extent of the impact of a certain phenomenon and desires to improve the areas where the plans and projects lack, like the problems faced by Jordan as it accommodates thousands of refugees from Syria on a regular basis.
From the participants of the interview, it has been gathered that the investment done by Beijing was mostly due to its interest to expand the fields and industries of infrastructure and technology . The companies in Beijing had to find new areas for infrastructure, which their already developed country failed to provide, and that is where the significance of Jordan lies. It has an infrastructure that does not live up to the standards of modern economy and needs restructuring. China being a country with advanced technology and proper modes as well as tools of infrastructure can provide that to Jordan, and that is what China has done so far. China has improved the roads and railways of Jordan and made them technologically advanced to the extent that they stand as one of the best in the world now .
The improvement of the transportation systems has improved Jordan’s chances at trading and commerce. Jordan has phosphate and potash mining possibilities, which serves them as an industry of export of these materials. Jordan is a major exporter of these two items and has been able to improve the quality as well as the quantity of their export industry because of the improved transportation system . The potash-mining sector and the phosphate deposits are the major sources of export for the country. The country that is 10% arable and has a limited source of water faces many difficulties to grow economically. Jordan is unlike its neighbouring states of Saudi Arabia, Iraq, Dubai, etc., as it lacks the number of natural resources that those countries possess, which makes it not a very promising prospect.
Figure 2: Resources found in Jordan
The issue of unemployment was solved largely due to the initiation of multinational firms, which were set up in Jordan because of China’s investment in the country. The standard of education improved and the socio-economic picture of the country saw drastic changes . The employment of more people provided Jordan with more economic stability and lesser social protests and violence, which were present earlier because of poverty and hunger. The standard of living of the whole country improved as more and more money was invested in the human as well as natural resources of Jordan.
Jordan serves as a gateway for the other states of the Middle East and is the centre of entry to the Levant. China strives to form new economical investments into nations like Palestine, Israel, Iraq, Syria, and many more and that is made possible by their investment in Jordan as Jordan forms the link to all these nations . For years, Jordan has been providing refuge to the people of Israel, Palestine, Iraq, and now Syria who have been evicted from their homes. Giving shelter to these refugees have enabled Jordan to form political connections with those nations and China as the partner of Jordan can utilize the possibility of trade in those areas where complete reformation is necessary. However, unlike the US, China does not take part in any political or military actions of these countries but maintains a business relationship strictly, which makes China a country that is more trustworthy as it brings economic reformation without political influence. The investment in the MENA region holds greater possibilities for China, but that has to be done under observation so that the developed nation cannot take undue advantage of the resources of the developing countries. Furthermore, the Silk Route as well as the Belt and Road Initiative have helped Jordan to be financially stable and have provided China to initiate reinstatement plans in countries like Syria and Palestine . The Sino-China relationship, which started as bilateral cooperation eventually turned into trilateral cooperation.
The application of the concepts of free trade has provided employment opportunities and technological improvements for Jordan. China has helped the government of Jordan with many of its operational and financial aspects and has engaged the government to actively help the refugees from Syria . Also, taxes and tariffs have decreased for both the countries to conduct trade in the other nation. The climate of business as well as commerce has become dynamic in Jordan after their collaboration with China and will be fruitful in the future. With the decrease in the exchange rate of currency and the diversification of the existing markets, Jordan has attracted many people at once. They can join new areas of commercial markets all around the world as Jordan is evolving as a global business font. The open market brings in the concept of equality in a country like Jordan where the initiation of different business fonts by female entrepreneurs is the way of the future world . The social cooperation between the nations increases, which can help solve the religious and status related problems.
Along with the scientific and financial improvement, the policy makers, as well as the officials of the deal, managed to evolve the standard of education in a country like Jordan and incorporated concepts for ICT and studies related to it so that a job can be easily available. The social life improved and the tourism sectors flourished due to the collaboration . The country was able to slowly come out of its huge amounts of debt and improve the level of GDP as the cooperation is starting to take its final step towards grand success. The features of export financial give a boost to the members involved. However, all this might have a positive as well as a negative impact on the other states of the Middle East where equal amounts of reformation are required. Along with the project of reinstating peace and stability in these nations, China also has a motive to make them a hub of commerce in the future so that China can earn revenues from it. Therefore, the economic relationship formed between the two countries has proved to a successful one with possibilities of improvement for both countries . The tapping of resources brings profit, and the investment brings infrastructure.
The qualitative data derived from the secondary sources had been taken from scholarly articles, journals and other materials, which could aid in the process of the research. The materials had described relevant information regarding the economic cooperation between Jordan and China and the various impacts that could be identified from the conceptual framework represented as the literature review section of the research project. It is to be mentioned in this regards that the positive influences that the economic cooperation between the countries had been identified initially. Though the positive impacts had been previously recognized, however, a discussion is to ensue again. It may be taken into account that the employment crisis in Jordan, among the youth, had been a persistent problem in the countries for quite some time. Furthermore, the rate of unemployment had reached a high of 39.76% in the year 2017 in Jordan . Therefore, acting as a responsible government, Jordan had been liable to take drastic measures against the issue. Hence, making use of the collaboration with China, Jordan had managed to put forward a scope for the enhancement of employment. Signing contracts with the energy harvesting power plants in Amman from several renewable resources have not only been beneficial for China but also Jordan as well as the Middle East region. The growth and the manpower required in the organizations may be catered through the procedure recruitment, in turn reducing the challenge of unemployment prevailing in Jordan.
Furthermore, not only does the investment of China in Jordan increases the scope for employment, but also the investments made by China as a result of the economic cooperation between the countries enhances the chances of employability. It may be mentioned in this context that China, along with other sectors had focused on the investment in education and educational facilities in Jordan. Therefore, a proper education can be regarded as the key to gaining a significant benefit regarding increasing one’s employability. It may also be added that along with the billion dollar energy projects in Jordan, the Belt and Road initiative had also been another source of speculation . It had been stated by several scholars that the benefits yielded by China about the establishment of the New Silk Route are likely to enhance China’s profit tenfold. However, it must also be taken into account that the implementation of the initiative and undertaking the development of the roadways through Jordan and the Middle East. Hence, the chances for employment go higher again.
Another impact, which can be taken into account as one of the positive impacts noted, is the cultural influence of China into Jordan. Learning a new culture and accommodating it into the economy to maintain better economic relations with the country is considered in this regards. It may be stated that the employment in the organizations, which are Chinese in origin or have headquarters in China may employ individuals well-versed in Chinese culture and language . It is to be noted in this accord that the influence of Mandarin is well expressed in Jordan. Courses at universities are offered on the Chinese languages, thereby aiming at improving the social, economic, as well as political relationship with China.
Figure 1: Sectors of Improvement in Jordan
FDI has been reporting regarding Jordan’s economy for five years. It is reported that in the range of US$1.5 billion–US$2.0 billion annually, Jordan has been facilitating trade and economic growth. Most FDI has been investing in sectors such as information technology, IT, power and energy and telecommunications. The Jordanian government has made several attempts in diversifying the workforce. The workforce and small-scale sector have been diversified keeping away from risks of “GCC”. Such investment attracts larger investment from China. Sooner, there was an investment agreement made by China estimating US$7 billion. The investments made by China include the establishment of a national railway that required $2.8 billion. Secondly, a major investment of $1 billion has been made in constructing 1,000-megawatt (MW) renewable energy power plant at the South of Jordan locale. Thirdly, the oil-fired power plant was invested within the rate of US$1.7 billion. The investments were made in building sustainability of Jordan’s economy. The investments are made aligned with the plan of the next five years would that accounts to annual FDI of $1.4 billion.
There has been marked development within the banking sector that has expanded to 25 licensed banks. It has been gathered that there have been establishments of three Islamic banks. However, the banks such as the Arab Bank and House Bank for Trade & Finance already dominated Jordan’s market. The increase in the banking sector has increased to 4% 2014-2018 with an increase in assets of US$64 billion. By the year 2017, it has been amounting to about 185% of GDP in Jordan. The strength of the banks has risen due to the deposits of residents. The total amount of deposits accounts to 79.1% in the estimation of total deposits. There have been foreign investments made of $7.9 billion including foreign liabilities and offshore lending. There has been development in Nonperforming Loan (NPL) that has witnessed a growth of 8.2% in 2010 to an increase of 4.4% in December 2016.
The Jordanian Foreign Minister underwent an investigation over the past five years of economic growth and found few challenges that have been influencing global security. The minister underwent research and found that apart from economic growth, the country requires developing outlook of individuals towards development and building employment opportunity. Further, challenges such as lack of proper security, weak governance, and conflicts caused by civil war result in depriving the country of stability. Thereby, it is important to build the notion of peace and prosperity and mitigate the adverse impact of discussed negative developments affecting Jordan’s economic strata. There has been a subsequent increase in development in the relationship between Jordan and China, building in foreign tourism and business developments. The features of export financial give a boost to the members involved. However, all this might have a positive as well as a negative impact on the other states of the Middle East where equal amounts of reformation are required.
Along with the project of reinstating peace and stability in these nations, China also has a motive to make them a hub of commerce in the future so that China can earn revenues from it. The point of discussion is the effect of the involvement of China in the economy of Jordan. From the analysis and research, it has been found that both the countries provide a clear stance of what the actual state of the nation is after the collaboration.
Figure 2: Jordan’s Potash Bank
Furthermore, considering the economic prognosis, the role in China in promoting trade and other regular facilities in Jordan had been discussed. It may be stated in this regards that transportation through the development of roadways as well as railways have been improved by 12% in a year . In addition to that, considering the trading and commercial aspects, one may mention that China is Jordan’s second largest trading partner. Furthermore, both the aspects of import as well as export ensue between the countries. The strategic location of Jordan, along with the connection to the Middle East region is thoroughly exploited by China. However, considering the benefits received by Jordan because of the economic cooperation is significant in this regards. It may be mentioned that China being a much-developed economy as compared to Jordan, aids in the development of the resources of the country. Regardless, the economic, as well as other benefits of China, are also to be regarded in this aspect. Firstly, the requirements of energy resources, which are abundantly found in Jordan, and are quite prevalent in the Middle East region, are important for China. The oil reserves in Amman as well as the other countries in Saudi Arabia, Oman and more are essential for catering to the fuel requirements for the sustenance of the economy of China . Hence, the major investments have been made in the development of energy resource projects. It may also be mentioned in this regards that the development of transportation may also be linked to the cheaper transports for facilitating the transport of the resources.
In addition to that, the development of the roadways and railways may also prove beneficial for the development of the New Silk Route, establishing a connection with the Middle East regions as well. Furthermore, finding skilled labour at lower prices for China is an essential criterion. Since Chinese labour markets are not well-versed or trained in harvesting oil from oil fields; employment for the youth in Jordan, as well as the Middle East, may gain a significant opportunity for employment. In addition to that, improvements in technological aspects have also been noted. China supplying machinery and equipment to Jordan may facilitate the growth and development of the projects, which China had invested in, as well . Therefore, taking all of the concepts into account, the cooperation, and collaboration between the countries is to be regarded as the future for the countries. The combined efforts for solving problems and major issues along with the continued future cooperation between the countries are ensured through the collaborations undertaken by the countries.
The scope for economic globalization has been reflected through the relationship between Jordan and China. The development of strategies, as well as the implementation of the same, can be attributed to the growing economic cooperation between China and Jordan. In addition to that, the involvement of the Middle East countries as a part of the strategies formed for both countries can be established. For instance, the prime reason for the economic cooperation between China and Jordan is the convenient location of Jordan, while connecting to the Middle East region . Regardless of the prevailing political unrest, the existing relationship between the countries has been strong. In addition to that, to enforce and facilitate the cooperation, the connection of the Middle East with Jordan is utilized by China through aiding in mitigation of certain issues. Furthermore, addressing specific issues such as the refugee crisis in Jordan, because of the political unrest in Syria, by donating a hefty sum of money may be regarded as positive outcomes concerning the developing economic cooperation between Jordan and China.
Figure 3: Belt and Road Initiative Map
Additionally, the military tactics being currently implemented among developed as well as developing countries have been a subject of concern for the world. However, it is to be noted that Weapons of Mass Destruction have been in store for various countries, ready to be launched . Hence for a lower economy such as Jordan needs to establish ties with multiple countries, which are higher economies or are, developed. It may be mentioned in this regards that the collaboration with a stronger economy may aid in having a global impact as well. Furthermore, the promotion of agriculture, along with animal husbandry and more are being undertaken through collaboration or the economic development of Jordan. However, China is set to gain from the resources, as well as selling their products in foreign markets at lower prices, to address the crisis of overproduction. At the same time, the lower prices encourage competition, while inhibiting the sale of other products as the cheapest are sold the most.
It has often been noted that collaboration between a high and a low economy has aided in the development of stability as well as rapid growth regarding culture and economy. In this regards, the economic cooperation between Jordan and China has resulted in the massive growth of Jordan. Improvements have been evident regarding education as well as the cultural aspects. Since Jordan has a majority population comprising orthodox Muslims; the acceptance of other religions as well as other cultures is not common. Regardless, the result of the cooperation between the countries, the acceptance of the Chinese culture, along with the Chinese language have been found evident in Jordan.
Furthermore, teaching the Chinese language to patrons and other students willing to pursue academics in the particular field has been observed in Amman . In addition to that, the fundamental improvement in the infrastructure of the country can also be attributed to the economic cooperation between China and Jordan. Furthermore, an enhanced social as well as political protection, which is often noted in growing economies, is observed through the economic collaboration between the countries.
Furthermore, the relationship with the USA, regarding the provision of military equipment and warfare strategies has been potentially beneficial for Jordan. Maintaining links with the most powerful country in the world may serve the purpose of protecting from other potential threats. For instance, the impact of the social, as well as the political impact of the Middle East on Jordan, may bring economic downfall, along with other threats. However, the collaborative relationships with China and USA have been effective in the protection of Jordan. It may be taken into account that the health and educational schemes implemented by Jordan have been a direct outcome of the investment of China. China had reportedly invested a few million dollars in the development of Jordan’s infrastructure. The construction, maintenance, governance and development of hospitals and other relevant structures such as schools and universities have, therefore, been undertaken as a result of economic cooperation.
Though Jordan is a developing country and is not quite a strong economy, the resources found in the country and the neighbouring countries make it a valuable investment for bigger economies such as China. It is to be taken into account that China is the world’s fastest growing economy, with an average GDP growth rate of approximately 7% per annum . Therefore, to sustain the existing operations and research undertaken by China, the country needs to quench its requirements regarding fuels and other energy resources. Furthermore, China requires a newer source for fish and wood for the sustenance of the economy as well. Hence, Jordan is one of the prime strategically well-located countries, which has most of the requirements of China, while at the same time, requires some support for the establishment of a better economy. Furthermore, it is to be maintained that the connection that Jordan shares with the Middle East region, especially, Syria, Palestine, Israel, and Saudi Arabia and so on, makes it eligible for economic cooperation with the largest growing economy in the world .
It is to be mentioned in this context that the availability of resources such as oil, wood, fish and so on has drawn the interest of China. Furthermore, because China has become the second largest trade partner of Jordan ensures that the mutual benefit is prevalent between the countries . The sale of the overproduced goods in the foreign markets of Jordan, along with the encouragement of the Chinese government for multinational organizations to expand business operations to Jordan and the Middle East can further be attributed to the growth and development as a direct outcome of the economic cooperation between Jordan and China.
The matter, which has been addressed in details in the sections above, affects the lives of the people in both the countries that are part of the trade and involves the people of the neighbouring states as well. Conditions like employment, the economy as well as peace in the internal operations of the nation becomes part of the relationship, and so the interview that has been conducted here involves those people who are directly affected by the results if the relationship. The individuals who have been approached for the interview are the members of the associations or companies that have engaged in the economic proceedings of the countries or are simply part of the population of China, Jordan or the countries of the Middle East.
From all the investigation done so far regarding China’s involvement in a country that is still developing and with an economic condition that is emerging, there are still various questions, which are considered by critics and policymakers all around the globe. The investment in the MENA region poses great threats to Chinese investors as those nations have active social as well as geographical issues that are hard to resolve. The great amount of monetary, technological and infrastructure related venture that China has regarding these regions are a topic of greater discussions to find the exact ratios of profit, which China aims to obtain from these countries.
China has although invested a lot in the past few years; it can still pull out of the deal because there is a great risk of China facing loses in Jordan. The social unrest of the nation related to religious and civil protests often serves as the conditions for economic misbalance. Also, the financial instability of the country gives rise to civil unrest within the nation. A continuous process has a circular motion that will continue to be so unless the country can come out of all its debts. Jordan also lacks reserves of natural resources that the other Middle Eastern nations have. However, in recent years it has been able to start a modern way of education, which enables and educates people to get employment in the contemporary world.
Figure 1: Mining sectors in Jordan
From the responses, which has been gathered it can be concluded that although the process of forming a collaboration seems easy and just for some country, it can often the reason of distress for another nation. The reason for this is the involvement of billions of dollars, which can change the flow of economy of the world and the international market. However, it can be easily stated that the living standards of millions of people will improve if the relationship between China and Jordan is effective. With free trade and open markets, the services and goods become affordable, the business investments done can have expert advice from economic nations that are developed. Tariffs, quotas to import are reduced, and technology is transferred with ease. All these possibilities have been gathered specifically from the representatives of the larger population of the countries involved, which makes it proper and accurate.
The research that has been conducted was based on the economic cooperation shared between Jordan and China. The researcher did the research based on the secondary data that could be gathered. The deductive approach was used to complete the search regarding hoe the cooperation between the two countries has developed — the theory based on how the research that has been conducted was the relationship between Jordan and China. The inductive approach was also used in this study to come to a particular conclusion as to how the theory supports the fact. But it was identified that the conclusions that were drawn from the deductive approach were way more certain than that of the inductive approach which was solely based on the probability. The research design was also presented where the different methods of doing the research were mentioned. In this particular dissertation, the descriptive design was chosen to research that helped in understanding the different challenges that were faced in accomplishing this particular research topic. The impact of economic cooperation between China and Jordan has been thoroughly analysed, and even their impact on the Middle East has also been researched thoroughly. The data that has been collected was known as the prime data type, which helped in getting a better insight within the whole matter. Primary data collection turned out to be quite challenging as the sources were intermediate and had a very contradicting view. So most of the data that were collected was based on the secondary data. Both Quantitative and Qualitative data collection method was utilized. The qualitative data collection was gathered from the primary resources based in the respective countries, which were done with the help of a questionnaire, which was formed about the requirements of the research. Based on these research techniques a research sampling was prepared which helped in proving that the research was legit. This whole collection of the samples has taken 10 months.
Other researchers have also been conducted in different surveys where the economic cooperation between Jordan and China has been analysed. All of these were thoroughly analysed in the literature review that has been presented over here. There are different articles, which have different research conclusions, and how those are different from one another has been analysed thoroughly. Many articles found that the economic cooperation has a positive impact on regional countries whereas; some articles based their studies on how the economic cooperation between Jordan and China had a negative impact on each other as well as the regional countries.
The researches that have been conducted on different participants it was analysed thoroughly and the results were compared with each other to understand if the economic cooperation had a positive or negative impact. For example, the question that was asked: Would you say that the ‘New Silk Route’ proposed might aid in the propagation of the development of Jordan and the neighbouring Middle East?
Based on this question there were 75 respondents out of 150 respondents who agreed strongly in regard that the economic cooperation between Jordan and China helped the neighbouring countries as well.
7.1 Recommendations that can be reflected in improving the economic relationship between Jordan and China
Jordan and China have been sharing this economic relationship for a very long time. China has been helping Jordan to develop their country’s infrastructure. However, in recent times it has been observed that the economic cooperation has been benefitting both the countries immensely. Both of these countries have had a long-term of friendly exchange regarding the economy, development of infrastructure, improvising the educational system, enhancing the culture within Jordan and other factors, which would enrich both China and Jordan in an all-around manner. They have developed bilateral cooperation, which brought both the countries significant accomplishments during the Cold War. The mutual benefits that they have gathered from each other have been exponential, and both China and Jordan have been trying to keep the ties intact. There are a few recommendations that both China and Jordan need to abide by which would benefit both the countries to continue the economic cooperation that they have been pertaining.
Figure 1: Employment Conditions
Firstly, China has to concentrate on other developments and cooperation other than economic development solely. Along with economic cooperation, other cooperation is needed to be built so that China can get a better hold of Jordan’s completely social and cultural structure. To be in any kind of relationship with another country the overall development needs to be considered or else it becomes difficult to provide any kind of aid to the country and bring any kind of benefit to the country itself. Regarding a country like Jordan, they obviously need Economic support but they are a broken country and does not have many resources to back themselves up and in this scenario, if China needs the investment to flourish then they need to make all the other persisting disputes to be rectified. However, China has been trying to develop Jordan in multiple ways, which would benefit both the countries equally. The environmental condition of Jordan has been very poor and to make any of the infrastructures sustain the environment is needed to be modified and evolved.
Another factor that has been affecting the economic cooperation between Jordan and China is the regional chaos that has broken through among the countries surrounding Jordan. This chaos has been pertaining for many years within them and as Jordan has been lying in a strategic position that has been influencing the economic cooperation because the trade relation with other countries has been stalled. When any kind of war or chaos is going on, then the trade is discontinued, and many countries stop their trade as well because the route of trade is obstructed concerning that chaos. The Middle East has been unsettled for a decade now, and the situation has seemed to worsen every day. Jordan has always been home for the refugees for the chaos that has been going on. Recently the refugees’ crisis that Jordan has been facing has been about the Syria and Iraq war where all the refugees have been seeking shelter in Jordan. These refugees made the lives of the Jordanians very difficult as they already could not meet competing with each other, but they also had to compete with the refugees for survival. For these Jordan needed more investors, China needs to help the refugee intensively before providing any further support. If the refugee situation is not sorted out, then there will not be any kind of further development. Although China has been helping the refugee crisis that has not been sufficient to make the lives smoother for the Jordanians. Instead of trying to sort out then the problem just within China can try to provide certain aid to the other regional countries that would rectify the entire problem from its root.
The Islamic culture in Jordan as well affects the issue of economic cooperation with China. However, Jordan is a country, which is inclusive of diverse culture because of its strategic situation, but Islamic culture dominates the country significantly. It leads to a very strict and static culture, which influences the trade and business. China has a mixture of western and traditional Chinese culture, but that does not collide with the orthodox Jordanian culture. There have been many obligations against the women in Jordan because they are not allowed to work go out in public openly. A cultural clash develops within the two countries, which is a huge barrier to the trade. However, China has been successful in Jordan with their investments because of the diverse culture within Jordan. However, if it is observed, it can be seen that most of the conflicts occurred due to the cultural; difference that has taken place. The rots took place mostly because of a clash between two different cultures. The Palestine and Israel war mostly developed due to the due to the religion issues.
For this reason, if China needs to settle in Jordan, it needs to aware the Kingdom about the different cultures and their importance. The obstructions are needed to be removed so that everyone living in the Kingdom can be enlightened about the cooperation that has been developed. When there are people, who think that the cultures that are being integrated within the Jordan culture are not according to the Jordan tradition they end up protesting, but this can be removed through the incorporation of different cultures’ importance within the education system. However, China has been bend of developing a University which would show the similarities and help the young generation of Jordan’s to get the knowledge about the Chinese culture and how both the cultures can be sublimated together. Both this awareness needs to be spread among the elders as well to help them get out of the Orthodox culture.
Figure 2: Overview of Jordan
China needs to encourage both side investments. Jordan also is needed to invest in China. Both the countries need to invest so that there is a win-win development. The pragmatic economic cooperation has to be from both sides. The free flow of commodities, techniques, capital and so on is needed to be entertained from both the sides which are almost absent from Jordan’s side. The hike in oil price in the Middle East made them gain a lot of profit and as a result of investment from their side would be as difficult as it has been envisioned. Jordan is no doubt in great need for the technologies from China to develop the infrastructure and the job sectors. Jordan is a country, which has no resources of its own, which stood out to be a great issue. They always have been dependent on foreign countries to get their resources for any kind of development or modification. If investments from both sides were entertained, then the bilateral cooperation would be possible. However, to get a development in the whole structure of the whole country, Jordan needs to look for other great investors as well which will act as a support for the infrastructure because if China is the only supporter, then it becomes extremely difficult to maintain the economic cooperation.
China needs to develop relations with both regional and sub-regional organizations with economic cooperation. Jordan is developing the regional integration at a high rate, but that does not suffice the need to completely dissolve the need for an overall development, which would wipe out poverty completely. Jordan needs to develop a relation with the regional countries where free trade can be entertained, and that would result in many benefits for all the regional countries. Both China and Jordan have been bound on creating a Sino –Gulf Trade Free Zone that would enhance the economic cooperation easier and for that reason, Jordan needs to develop a peaceful relationship with the bordering countries like Israel, Iran, Iraq, etc. There are a lot of discrepancies that have been obstructing trade, and those discrepancies have been unresolved. The constant development of the China and Jordan economy has led to a lot of friction between the trade relationships of the two countries. The Chinese commodities that are exported in bulk to Jordan have equivalently affected the domestic markets, and the national manufacturing industries are impacted. To remove all the discrepancies, they need to reduce some of the profits; China needs to support the importance of the national and domestic industries.
Figure 3: GDP of China
Furthermore, China also needs to give a lot of support small and medium-sized organizations or industries, which would help in increasing the employment in Jordan, which has been a very prominent factor for a very long-time. China has been very affluent, but the unemployment problem has not been subdued, which has been influencing the nation immensely. Big industries have been promoted immensely, but they did not remove unemployment, so they need to promote the small and medium industries.
China has been helping Jordan by providing aid to the country. Jordan has been facing a lot of issues regarding the war-prone situations, the refugee crisis and so on. The aid that has been provided to Jordan turns out to be an enhancement process of self-development for the country. However, China is not concentrating on enhancing the development process but has been focused on trying to sort the situation temporarily. China needs to concentrate more on providing such assistance so that Jordan can get their procedures and infrastructure developed on their own without taking much help in the future. Jordan has been quite interested in the managerial skills and the expertise in administration, as those skills have helped China to flourish at this rate and they have the tactical skills, which would help Jordan to accomplish lot successes. Jordan wanted China to train their employees, and China does nearly 2500 officials a year. However, that just isn’t enough, many studies have shown that the same employees are being trained over and over again. So the awareness about the Chinese technology has to be spread all over Jordan so that new Jordanians come up and get interested in being trained about the different skills that the Chinese industries have mastered.
There needs to be an initiative from both Jordan and China to make sure that the multilateral and bilateral relations both can interact with each other in a healthy way. Based on China’s diplomacy the bilateral; relation with Jordan has been developed. A forum has been setup where the traditional friendship is strengthened. All the government officials, several businesspersons, and industrialists attend the forum and the different issues that are creating a problem for the development of the economic cooperation between the two countries. However, that is not sufficient to get everything in place, even the small entrepreneurs and the people who are interested in these kinds of business set up needs to be entertained within this forum. The trade reactions with other countries and how all the countries can cooperate with each other to get an economical benefit is also discussed in this forum but this forum members from all the countries need to be present so that the present situation of every country can be portrayed, and proper recommendations can be suggested in that regard.
China has been moving forward in rejuvenating and making the world harmonious, but that is not sufficient, there needs to be cooperation from the other end as well. The different issues that have been observed are that Jordan is solely concentrating on benefitting about themselves but not building a relationship through these trade and economic cooperation. The Silk Road project has been initiated by China to help the Gulf countries and to develop an economic relationship between them all. So all the Gulf countries need to be at peace and help each other to make this project successful. China has been thinking very strategically to make sure that the cultural exchanges between the two countries are developed but to develop a harmonious world all he countries need to respect each other.
The recommendations regarding the different steps both China and Jordan can incorporate in their strategic development plan to enhance their economic cooperation are mentioned above.
China and Jordan have been building this economic cooperation for a long time this has been named as the Silk Road Project. China has developed this project to connect to all the countries so that they can communicate with the trade. The basic importance for the generation of this project has been impacted on the economic structure. This has built a gateway of trade and communication in the Middle East region. The Silk Route Project has shown a growth in the industrial sector in Jordan. The living standard of Jordan has increased with the establishment of trading and industrial sector in Jordan. The Chinese investor has shown a great interest in building the economic structure of the Middle East. This project file indicated the ways of signing treaties between the two countries for the development of the economic structure. This project gave us an idea regarding the industrial growth is possible in Jordan. The introduction of trade route has been helpful for the development of communication and technology with different countries across the globe. This shows that various countries are interested in investment in the industrial sector of Jordan. The development in the field of infrastructure in Jordan has helped in the growth of living standard. The introduction of new technology has helped Jordan to flourish with trading and industry. This cooperation with China has helped Jordan to compete with the global economy. The study has shown that Jordan’s economy is among the smallest economy in the Middle East. Jordan has faced different issues with the growth of its infrastructure and economic structure. The other economic challenges that have been faced are the high rate of poverty, underemployment and unemployment. The basic strength that Jordan has is its natural oil and gas, introduction of new technologies by China has helped Jordan to develop its economic structure in the world. This has also helped the other Middle East countries to utilize its resources properly.
Figure 1: Economy of Jordan
The conflicts between countries in the Middle East affect Jordan’s managerial and economical status. Due to these conflicts in the Middle East region, several countries have hesitation on investing in Jordan’s economy. The reports and studies have been made in regards to the conflicts of Jordan’s economical structure. The war and conflicts in the Middle East countries have affected in the high inflation rate, large fiscal and current account deficit, contraction in growth, loss of reserve and weakened financial system. Another conflict that immensely affected is the Syrian crisis and the shifting of refugees. The internal issue related to politics and economy is affected Jordan. The tourist inflow has been affected immensely by war and conflicts concerning the generation of the economy. The basic challenge for Jordan is its stability of the economic status in the end. The cooperation with China has helped Jordan in stabilizing different issue in related to development. The growth of the trading gateway and industries has helped Jordan to grow its infrastructure.
The strategies and policies that have been applied by Jordan have influenced the development of the economic status in the long run. The political structure set up by Jordan has included certain steps towards achieving goals for the development of the economy of the country. The basic steps that have been taken for the development of the countries’ poverty and living standard is significant. The Chinese investors have applied certain strategies to overcome the positive aspect of conducting trade with Jordan. The introduction of Chinese technology has helped the establishment of industries in Jordan. The relationship has been generated between both the countries in setup a platform for an economy in the world. This has provided the Middle East countries to established trade with different other countries and providing them with the best quality product with a cheaper rate of price. The development has been helping Jordan in the field education and social structure. The exchanging of new ideas and thought has been flourished between the two countries. The utilization of resources and development of industries has been a great opportunity for Jordan to establish their economy globally. In regards to the survey and policies that have been introduced for the establishment and development of socioeconomic structure in the country.
Figure 2: Jordan’s Industries
There were seven objectives mentioned at the beginning of this dissertation, which was to be achieved. The first objective was to evaluate the contribution of China in enhancing the economic status in Jordan. To meet this objective, the status of the economic situation has been analysed.
The financial growth on the economy of Jordan has established by China in a long run process. The coordination with China has helped Jordan to build their plan regarding the development in different field like economic, political, and social structure. China has generated the project of Silk Route and developed policies to show interest towards the growth of the economy in a large state. The introduction of Chinese technology has helped in flourishing the status of the world economy of Jordan. The economic progress of Jordan has been influenced in a great way by Chinese investors. China showed a great interest in the development of industrial sectors in Jordan.
The second objective that has been mentioned here are the different challenges that are faced by the countries about economic cooperation. This report has been a genuine aspect toward the achievement of the goal in the development of Jordan’s economical structure. Jordan has a scarcity of water and productive land. The basic issue has been with the conflicts and wars in the Middle East region. The important aspect of Jordan has been its natural resources, and China has helped in introducing technology to flourishing the industries. This helped the other Middle East countries to form a better way of utilizing its resources and developing their economic structure in the world.
The third objective that has been stated was the different policies which were articulated by China and Jordan and the different ways in which both the countries support each other to enhance the development and economic cooperation. To meet the objective a literature review has been conducted which described the different policies, which were developed as if the Silk Road Project, which has been, studied that helped in developing the economic relationship between the two countries equivalently. The impact of Jordan and China on each other has been analyzed with the help of quantitative data, i.e. the different articles and surveys.
The fourth objective has been to identify the impact of the economic cooperation between Jordan and China on the Middle East area. The impacts on the Middle East due to this economic cooperation have been thoroughly analyzed with the help of different research techniques and another method. There are different articles on the impact on the Middle East due to this economic cooperation, which has been compared thoroughly. Analysis has also been conducted to understand the status of the Middle East region and the different impacts this cooperation has been having. These were analyzed by discussing the different challenges that were faced by the Gulf Countries.
The fifth objective has been to identify the different sectors where China has invested in Jordan. This has been a prime objective that has been discussed in every parameter of this dissertation. In the data collection method, as well several questions were asked to the participants who would help in understanding the present situation of the Jordanian kingdom. These questions helped in understanding the need for investment of China in other sectors as well. The investments that were made about the cultural, educational, infrastructural, environmental and health sectors in Jordan were analyzed and discussed thoroughly. A literature review has also been conducted based on the different sectors where they have invested.
This is the sixth objective that demonstrated the need for the support of China in the field of development of Jordan’s economic structure. The collaboration with the policies and plans introduced by China has been helping Jordan to build its industrial status in the world economy. China has been investing in the Middle East region to create a gateway of trade. China has also been generating an economic status in the world by investing and showing interest in the development of the Middle East region of the world. The basic aspect is to gain the profit from the investment made by China in the development of the economic structure of the Gulf Countries.
The seventh objective that stated the different requirements of resources and the potential aspects which made China make investments generously in Jordan. China made various investments based on the source of resources that they have been getting from Jordan. The best mode of investment has been the nuclear technology and the oil shale, which are based in Jordan. Jordan is in a strategic position, which has benefitted China in developing a relationship with other countries surrounding Jordan as well. These have been undoubtedly discussed in the literature review but also have been analyzed with the help of different researches and surveys that were conducted.
The main aim of this of the dissertation was to demonstrate the different situations that have been faced by both China and Jordan while developing the economic cooperation. These were mentioned in the objectives, and the objectives have been analysed thoroughly and were researched in this particular paper.
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