Amman, Aug. 16 (Petra) — A report by the Jordan Strategy Forum (JSF)
has highlighted opportunities to deepen economic ties between Jordan
and China, particularly by diversifying Chinese investment, expanding
Jordanian exports, and promoting technology transfer ahead of His
Majesty King Abdullah II’s expected visit to China.

The report, titled “Jordanian-Chinese Economic Prospects: Between
Trade and Foreign Direct Investment,” examines China’s growing
economic role in the Middle East, bilateral trade and investment, and
Jordan’s priorities in attracting productive investment and
strengthening its position as a trusted regional production hub.

The forum said technological shifts and competition among major
powers are reshaping the global economy, turning trade, investment,
and supply chains into key components of economic security. China has
emerged as a major industrial, investment, and technological power,
while advanced economies are placing greater emphasis on supply-chain
resilience, export controls, and economic security.

According to the report, Chinese exports to Arab economies reached
$293.5 billion in 2025, while imports stood at $201 billion, bringing
total trade to about $495 billion.

China’s economic engagement with the region, once focused largely on
meeting its energy needs, has expanded into trade, investment,
infrastructure, manufacturing, logistics, and technology, supported
by the momentum of the Belt and Road Initiative, the report said.

Globally, Chinese foreign direct investment rose from $45.8 billion
in 2010 to a peak of $215 billion in 2017, before declining
significantly between 2018 and 2023 and recovering to $88.2 billion
in 2025. The trend suggests Chinese overseas investment remains
significant but has become more selective, the forum said.

The structure of Chinese overseas investment has also shifted from a
focus on infrastructure and energy toward renewable energy, electric
vehicles and batteries, digital infrastructure, artificial
intelligence and advanced manufacturing.

The forum said new Chinese legislation governing overseas investment,
which entered into force on July 1, 2026, places greater emphasis on
compliance, governance, sustainability, and supply-chain security.
This could create opportunities for Jordan to attract productive
investment that increases local value added, transfers technology,
and expands exports.

On bilateral trade, the report said the relationship remains heavily
weighted toward trade rather than investment, production, and
technological cooperation. In 2025, Chinese exports to Jordan stood
at about $6.29 billion, compared with Jordanian exports to China of
$430 million, resulting in a bilateral trade deficit of about $5.86
billion for Jordan.

Jordanian exports to China remain concentrated in a relatively
limited range of products, including phosphate, potash, fertilizers,
chemicals, and copper.

Cumulative Chinese direct investment in Jordan reached about $3.56
billion between 2010 and 2025, according to the report. The figure
was lower than Chinese investment in Iraq at $12.19 billion, the UAE
at $9.72 billion, Egypt at $8.29 billion, Saudi Arabia at $7.02
billion, and Morocco at $3.93 billion.

China implemented 71 investment projects in Jordan during the period,
compared with 1,227 in the UAE, 540 in Saudi Arabia, 375 in Egypt,
and 177 in Morocco. Iraq attracted 30 Chinese projects despite
receiving significantly higher investment volumes.

Chinese investment in Jordan is also heavily concentrated in energy.
Of the $3.56 billion invested during 2010-2025, about $3.17 billion,
or nearly 89%, went to the energy sector. Other investments included
about $360 million in consumer products, $19.7 million in vehicles,
$6.4 million in financial and business services, and only $4.27
million in information and communications technology.

The forum said Jordan’s challenge is therefore not simply to attract
more Chinese investment but to diversify it toward activities that
build productive capacity, transfer technology and expertise, develop
local suppliers, create skilled jobs, and support more sophisticated
exports.

It identified five priorities for maximizing the outcome of the
anticipated royal visit.

First, Jordan should position itself among Chinese investors as a
stable, internationally connected base for export-oriented
production, leveraging its strategic location, skilled workforce,
industrial zones, and preferential access to major markets.

Second, Chinese investment should be diversified toward sectors
aligned with Jordan’s Economic Modernization Vision, including
advanced manufacturing, renewable energy, mining, pharmaceuticals,
logistics, ICT and digital services, food industries, and tourism.

Third, cooperation should extend beyond capital investment to
technology transfer and capacity building, particularly in renewable
energy, electric vehicles and batteries, digital infrastructure,
artificial intelligence, and advanced manufacturing. The forum also
called for partnerships in research and development, innovation
centers, vocational and technical training, higher education, and
commercialization of entrepreneurial ideas.

Fourth, Jordan should expand and diversify its exports to China. The
report estimated untapped Jordanian export opportunities in the
Chinese market at about $400 million and called for practical
progress in market access through streamlined standards and
certification procedures; improved logistics; e-commerce and trade
promotion; as well as stronger direct business links.

Fifth, government agreements should be translated into projects on
the ground by matching Chinese investors with sector-specific
opportunities in Jordan, strengthening links between chambers of
commerce and industry and business organizations in both countries,
and establishing effective channels between Chinese and Jordanian
companies, including small and medium-sized enterprises.

The forum also proposed establishing a permanent Jordan-China
economic cooperation and implementation mechanism involving relevant
government institutions, investment authorities, business
organizations, and the private sector.

Such a mechanism, it said, would follow up on agreed projects,
address implementation obstacles, and identify new areas of
cooperation, helping translate high-level commitments into
commercially viable investments.

The forum said the anticipated royal visit represents an opportunity
to advance this transformation and turn the strategic partnership
into tangible results through more diversified investment, expanded
exports, technology transfer, quality job creation, and stronger
local capabilities.

//Petra// AF