Cross-Border Trade and “the Market” between Xinjiang (China) and Pakistan

ABSTRACT

A significant part of China-Pakistan cross-border trade falls within the category of shadow economy. Most Pakistani traders in Xinjiang cannot afford to ship containers through the Khunjerab Pass and rather carry the goods purchased in China with them on the daily buses to Sost, Pakistan, thus avoiding customs duties. This form of border economy, though falling outside of the regulatory regime, is far from being informal. Rather, it is based on a network of contacts on both sides of the border and made possible by the particular institutional and infrastructural setting of the area. Based on long-term fieldwork in both Xinjiang and Pakistan, this article shows the complexity of these transactions, their transnational nature and the performativity that characterises them. It also highlights the role of online technologies and social networks in the cultivation of those relations, and the ability of traders to navigate often-changing norms and the flows that characterise the market. Eventually, the article suggests a new definition for “the market” as it emerges from the experience of traders in Xinjiang. For them the market is neither simply based on trust, social relations and the continuous flow of information; nor does it correspond to the global, culture-free market economy

KEYWORDS:

• Market
• shadow economy
• cross-border trade
• Xinjiang
• Pakistan

Acknowledgements

I would like to thank my PhD supervisors Tanya Argounova-Low, Martin Mills and Andrea Teti for their help throughout my doctoral studies, as well as the editors of this special issue, Martin Saxer and two anonymous reviewers from the Journal of Contemporary Asia for their insightful comments on various versions of this article.

Competing Interests

No potential conflict of interest was reported by the author.

Notes

1. Research for this article was conducted as part of a doctoral project in 2012–2013. In the course of the research I became acquainted with dozens of cross-border traders and informally talked with many more. All data included in this article was cross-checked with different actors (traders, border guards, local businessmen and others) possessing comprehensive knowledge of cross-border practices in the area. To protect the safety of informants, their names have been changed in this article.

Additional information

Funding

Research for this article was conducted as part of doctoral fieldwork and written with the generous support of the European Research Council (Starting Grant 637764, Highland Connections).