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The economic development models of Arab countries are very different, and the high imbalance in the distribution of resources and factors in various countries determines that when China carries out international production capacity cooperation with Arab countries, it must select and determine key cooperation countries and key promotion industries according to the specific conditions of Arab countries. First of all, in the labor-intensive industrial manufacturing sector, although labor abundance and internationally competitive labor supply prices are indispensable factor conditions for the development of related sectors, however, non-economic factors that are difficult to quantify such as culture, education, and labor habits will also exert an important impact on labor productivity, and the reality of cultural and psychological distance between China and Arab countries further increases the difficulty of Chinese enterprises in managing local employees. In the "product distance" theory, countries that have shown strong international competitiveness in the development of labor-intensive industrial manufacturing are selected as key cooperation partners, and manufacturing sectors with similar technological content to the dominant products of the host country are selected as key industrial sectors for promotion. Secondly, in the capital-intensive industrial manufacturing sector, because the relevant industries are highly sensitive to electricity supply prices and frequently suffer from international trade frictions, China should choose countries with guaranteed power supply and free trade agreements with the EU as key cooperation countries, and select those manufacturing sectors that frequently have trade frictions with the EU and relatively short industrial chains as key industrial sectors.(AI翻译)
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