Pakistan China Relations / Friendship (Detailed Report/ Document)

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1. Introduction
“Over the past 62 years since the establishment of diplomatic relations, the seed of China-
Pakistan friendship sowed by Mao Zedong, Zhou Enlai, Zulfikar Ali Bhutto and other leaders
of the older generation, has grown into a towering tree thanks to tendering by several
generations of Chinese and Pakistanis.”
Broadly speaking, three subject matters in Pakistan can claim to enjoy near-unanimous,
nationwide support. Namely:
 Kashmir,
 Nuclear bomb, and
 China.
With a 90% favorability rating inside Pakistan as per a 2012 PEW survey, China’s popularity
in Pakistan appears to cut across all segments of the Pakistani populace. Within the political
and military circles, as well as civil society and the general public, the attitude towards China
is seemingly and exceptionally positive.
Islamabad’s benevolent disposition towards Beijing can be gleaned from watching state-
owned channel, Pakistan Television or PTV. PTV daily broadcasts a song about Pakistan-
China friendship (or “Pak-Chin dosti”); the lyrics are a combination of Urdu and Chinese,
repeating the chorus: “Long Live Sino-Pak Friendship” in both languages. In the 1970s, too,
PTV routinely played a Pakistan-China friendship song. Pakistan has not extended such
gestures to any other country.
Another action signifying the importance of China to Pakistan is the maiden visit to China
made by Prime Minister-elect, Nawaz Sharif. On 4 July Sharif made China the first destination
of his overseas trip. This came as a surprise to many who expected Sharif to turn to Saudi
Arabia, Pakistan’s erstwhile financier and also a personal ally to Sharif; after being deposed in
a military coup in 1999 (during his last premiership). Sharif had benefited from the hospitality
of Saudi Arabia where he took refuge for eight years. Choosing Beijing over Riyadh as his first
port of call, then, magnifies the relevance and import of China.
Sino-Pak diplomatic relations can be traced back to the early 1950s. On 9 January 1950
Pakistan recognized the newly established Peoples Republic of China and diplomatic ties
between Pakistan and China were forged in 1951 when Pakistan opened its mission in Beijing.
Relations are thought to have fizzled when Pakistan was seen backing the United States against
seating the People’s Republic of China in the United Nations. After its partition from India in
1947, the newly found Pakistan allied itself with the capitalist US coalition and at a time when
India and China were allies. In a convoluted step, under Prime Minister Zulfikar Ali Bhutto
Pakistan also built closer ties with communist countries, including Soviet Union and China.
Pakistan was one of the first countries, and the first Muslim country, to recognize the People’s

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Republic of China (PRC), thus providing China with a corridor into the non- communist world.
This was reciprocated with a continual stream of no-strings-attached military hardware and
defense-related assistance from Beijing. While defense cooperation remains a lynchpin in their
partnership, economy and energy are emerging as the new hot topics. They are of imperative
importance to Islamabad who is engaged in concerted efforts to persuade Beijing to bring
economic and commercial ties between the two countries at par with the duo’s defense
dealings.
China’s rise as a strong economic and military power and kingmaker with growing political
clout is increasingly challenging American hegemony. While China’s friendship with a number
of countries has waxed and waned over the decades, Sino-Pak relationship can be said to have
withstood the vicissitudes of larger international politics as well as changes in regional and
domestic currents. The close ties between China and Pakistan remained steadfast in defiance
of the differences in language, culture, history, and ideology. The connection is often noted for
its relative uniformity based on a geo-strategic interests common to both China and Pakistan
and has been well preserved over time.
One of the possible bones of contention in an otherwise amiable relationship is the unstable
security situation in Pakistan and the threat to Chinese workers/personnel. Beijing needs a
stable and peaceful Pakistan in order to realize its economic endeavors in the area. While the
killing of Chinese nationals in Pakistan severely impairs the image of Pakistan in China, it does
not appear to necessarily cause a rift in state-to-state relationship; while China encourages
Pakistan to counter its prevalent terrorist trends, there is also a tacit understanding between the
two nations that “outside forces” are at play in the region, interested in counter-weighing Sino-
Pak partnership.
China is heavily invested in South Asia; this arguably bears ramification for the US as a
superpower who would be interested in countering Chinese influence. There appears to be little
doubt in Islamabad that, despite verbal assurances from the US that it does not have a problem
with Sino-Pak friendship, the US is “intervening” in this regard. In real terms, Pakistan receives
greater investment and assistance from the US and the balance of trade between US and
Pakistan is in the latter’s favor. This is attributed to the United States status as a superpower
versus that of China that remains as yet shy of “the category of countries to provide immense
assistance”. Yet, since China has shown to evolve over the years with economic growth and
increased political clout, Islamabad expects to continue reaping rewards of its close alliance
with Beijing.
However, it is possible that while bilateral cooperation remains robust in the Sino-Pak
partnership. Especially from the Chinese perspective, it may not be as important as it once was
– that is, it is now more cordial than considerable. Firstly, a thaw in Sino-Indo relations starting
in the late 1980s signaled a declination in Chinese interests vis-à-vis Pakistan. China arguably
feels less contested by India today; China boasts a GDP 4 times higher than India, and military
budget 3 times as large. Trade between China and India is six times greater than that between
China and Pakistan. Furthermore for Beijing, threats posed by India, while important, are not
as important as those it faces in the east – that is, other regional issues and challenges, chiefly

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those emanating from the East Asian Littoral.
Secondly, the security crisis in Pakistan (endangering the lives of the 13,000 Chinese workers
in the country) and the Uighur dissent in China’s Xinjiang province (perceived to be further
inflamed by the spread of militancy in Pakistan) have led Beijing to question the stability and
security Pakistan can offer to advance Chinese economic interests, and also engenders mistrust
where Pakistan is seen incapable or unwilling to manage terrorist trends that affect China.
2. History
China–Pakistan relations began in 1950 when Pakistan was among the first countries to end
official diplomatic relations with the Republic of China on Taiwan and recognize the PRC.
Since then, both countries have placed considerable importance on the maintenance of an
extremely close and supportive relationship and the two countries have regularly exchanged
high-level visits resulting in a variety of agreements. The PRC has provided economic, military
and technical assistance to Pakistan and each considers the other a close strategic ally. The
relationship has recently been the subject of renewed attention due to the publication of a new
book, The China-Pakistan Axis: Asia's New Geopolitics, which is the first extensive treatment
of the relationship since the 1970s.
Bilateral relations have evolved from an initial Chinese policy of neutrality to a partnership
with a smaller but militarily powerful Pakistan. Diplomatic relations were established in 1950,
military assistance began in 1966, a strategic alliance was formed in 1972 and economic co-
operation began in 1979. China has become Pakistan’s largest supplier of arms and its third-
largest trading partner. Recently, both nations have decided to cooperate in
improving Pakistan's civil nuclear power sector.
According to Pew Research Center in 2014, Pakistanis have the most favorable view of China
after China itself. Maintaining close relations with China is a central part of Pakistan's foreign
policy. China supported Pakistan's opposition to the Soviet Union's intervention
in Afghanistan and is perceived by Pakistan as a regional counterweight to NATO and
the United States. In addition, Pakistan was one of only two countries, alongside Cuba, to offer
crucial support for the PRC in after the Tiananmen protests of 1989. China and Pakistan also
share close military relations, with China supplying a range of modern armaments to the
Pakistani defense forces. China supports Pakistan's stance on Kashmir while Pakistan supports
China on the issues of Xinjiang, Tibet, and Taiwan. Military cooperation has deepened with
joint projects producing armaments ranging from fighter jets to guided missile frigates.
Chinese cooperation with Pakistan has reached economic high points, with substantial Chinese
investment in Pakistani infrastructural expansion including the Pakistani deep-water port
at Gwadar. Both countries have an ongoing free trade agreement. Pakistan has served as China's
main bridge between Muslim countries. Pakistan also played an important role in bridging the
communication gap between China and the West by facilitating the 1972 Nixon visit to China.
The relations between Pakistan and China have been described by Pakistan's ambassador to
China as higher than the mountains, deeper than the oceans, stronger than steel, dearer than

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eyesight, sweeter than honey, and so on. According to Stockholm International Peace Research
Institute Pakistan is China's biggest arms buyer, counting for nearly 47% of Chinese arms
exports. According to a 2014 BBC World Service Poll, 75% of Pakistanis view China's
influence positively with only 15% expressing a negative view. In the Asia Pacific
region, Chinese people hold third most positive opinions of Pakistan's influence in the world,
behind Indonesia and Pakistan itself.
Buddhist monks from the area of what is now present day Khyber Pakhtunkhwa region of
Pakistan were involved in the Silk Road transmission of Buddhism to Han dynasty China. The
Han dynasty's Protectorate of the Western Regions bordered the Kushan
Empire. Faxian travelled in what is now modern day Pakistan.
Pakistan has a long and strong relationship with China. The long-standing ties between the two
countries have been mutually beneficial. A close identity of views and mutual interests remain
the centre-point of bilateral ties. Since the 1962 Sino-Indian War, Pakistan has supported China
on most issues of importance to the latter, especially those related to the question of China's
sovereignty like Taiwan, Xinjiang, and Tibet and other sensitive issues such as human rights.
The Chinese leadership has acknowledged Pakistan's steadfast support on key issues. Pakistan
helped China in reestablishing formal ties with the West, where they helped make possible
the 1972 Nixon visit to China. Pakistan has collaborated with China in extensive military and
economic projects, seeing China as a counterweight to India and the United States. Pakistan
has also served as a conduit for China's influence in the Muslim world.
China also has a consistent record of supporting Pakistan in regional issues. Pakistan's military
depends heavily on Chinese armaments, and joint projects of both economic and militaristic
importance are ongoing. China has supplied equipment to support Pakistan's nuclear program.
3. Economic Cooperation
4. Military and Defense
4.1 History

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According to Pew Research Center in 2014, Pakistanis have the most favorable view of China
after China itself.] Maintaining close relations with China is a central part of Pakistan's foreign
the United States.[dubious – discuss]In addition, Pakistan was one of only two countries,
alongside Cuba, to offer crucial support for the PRC in after the Tiananmen protests of 1989.
China and Pakistan also share close military relations, with China supplying a range of modern
armaments to the Pakistani defense forces. China supports Pakistan's stance on Kashmir while
Pakistan supports China on the issues of Xinjiang, Tibet, and Taiwan. Military cooperation has
deepened with joint projects producing armaments ranging from fighter jets to guided missile
frigates.

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4.2 Brief Focus:
When Pakistan’s military claimed its first attack in October using a home-built drone to hit a
Taliban stronghold, western officials were quick to search for clues to a Chinese connection.
Experts say Pakistan’s “Burraq”, one of the first two indigenously built armed drones, bears a
striking resemblance to China’s CH-3.
Officials lauded the drone that equipped Pakistan with a technology that has been denied them
by the US in 15 years as a key Washington ally in the campaign against terror.
“The Americans have given us billions of dollars and military equipment like F-16s since the
9/11 attacks,” says one senior Pakistani foreign ministry official. “But whenever we asked for
armed drones, we were refused and the Americans always told us that was sensitive
technology.”
Though Pakistani officials deny suggestions of Chinese involvement in the country’s drone
program, western officials remain unconvinced as military links between Beijing and
Islamabad tighten.
Earlier this year, China confirmed an agreement to sell Pakistani Beijing’s largest ever single
defense export order.
Rana Tanveer Hussain, Pakistan’s minister of defense production, has confirmed that half of
the eight submarines will be built at the Karachi shipyard and engineering works, boosting
Pakistan’s shipbuilding capacity.
“The two projects [building four submarines in China and four in Pakistan] will begin
simultaneously,” he said, while commending China as an “all-weather friend”.
Analysts say Pakistan is seeking to make China its main supplier of military hardware, partly
due to the looser financial terms offered by Beijing, replacing traditional suppliers from the
west.

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One indication of China’s emergence as a rising arms exporter was highlighted in a recent
report by the Sweden-based Stockholm International Peace Research Institute, which
concluded that China had increased its arms exports 143 per cent in the past five years,
replacing Germany to become the world’s third-largest exporter after the US and Russia.
China’s biggest customer during the period was Pakistan which, according to the SIPRI, bought
41 per cent of China’s exported arms.
“China’s capacity to indigenously produce military platforms has made significant gains over
the past decade or so, and gone are the days when it simply used to copy Soviet or Russian
designs, so countries buying Chinese equipment like Pakistan certainly stand to gain,” says
Peter Felstead, editor of IHS Jane’s Defense Weekly, the global defense publication.
“The gap between Chinese capabilities and those of the west have been narrowed, except in a
few areas such as the production of aero-engines, for which Chinese-built platforms remain
dependent on Russian imports.”
Mr Felstead’s reference to Russian components is most visible in the case of the JF-17
“Thunder” fighter jet, jointly manufactured by China and the Pakistan Air Force at its Pakistan
Aeronautical Complex facility just north of Islamabad. A senior Pakistan defense ministry
official confirmed that the JF-17, which will become the PAF’s main second-line fighter jet,
will be “powered for the foreseeable future” with the Russian-built RD-93 engine, overlooking
Beijing’s offer of a Chinese engine.
Pieter Wezeman of the SIPRI says Chinese military equipment is at a disadvantage for not
having been used in conflict situations, unlike hardware from western suppliers which comes

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with a combat history. “The only place where Chinese equipment is known to have performed
alongside equipment from other suppliers is Pakistan,” he notes.
In the case of Pakistan’s use of its first armed drone, Mr Wezeman says it is important to
remember that it was used against Taliban targets in a remote region along the Afghan border,
and it was not challenged by enemy aircraft. “One has to be careful before one sees this as a
breakthrough,” he adds.
Still, western defense officials say Beijing’s strategy of offering significantly lower prices and
a virtual absence of political strings gives China a rising presence in international markets.
4.3 Military Relations:
As early as over 2000 years ago, the world renowned Silk Road linked the two sides together
in a connection. During the 7th century A.D., an eminent Chinese monk in the Tang Dynasty,
who travelled westward has mentioned about his fond memory of the land and people in his
famous book Records of Western Travels.
Modern age China-Pakistan relations began on 4 January 1950 when Pakistan was among the
first countries to recognize the Peoples' Republic of China (PRC). Since then, both countries
have placed considerable importance on the maintenance of an extremely close and supportive
relationship and have regularly exchanged high-level visits resulting in a variety of agreements.
China and Pakistan are close neighbors linked by common mountains and the friendship
between the two regions has a long history. The PRC has provided economic, military and
technical assistance to Pakistan and each considers the other, a close strategic ally. Diplomatic
relations were established in 1950, military assistance began in 1966, a strategic alliance was
formed in 1972 and economic co-operation began in 1979. China has become Pakistan's largest
supplier of arms and its third-largest trading partner.

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The Chinese leadership always acknowledge Pakistan's consistent support on key issues.
Pakistan helped China to break its isolation from the West and USA, and re-establish formal
ties with this bloc, and helped to materialize Nixon's visit to China in 1972.
Recently, both nations have decided to cooperate in improving Pakistan's civil nuclear power
sector which is a beneficial indication to create balance in the region since USA is putting
weight behind India.

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Pakistan has collaborated with China in military and economic projects and has also served as
a conduit for China's relations with the Muslim world. China also has a consistent record of
supporting Pakistan on regional issues. During the Pakistan-Indian tensions in 2008, it implied
to support Pakistan in all circumstances. Pakistan's military has been assisted by China
procurement of military hardware and joint ventures are also in progress.
4.4 Army, Navy, and Airforce:
The People's Liberation Army (PLA) is the military arm of the Communist Party of China
(CPC) and the defector armed forces of the People's Republic of China, consisting of land, sea,
strategic missile and air forces. PLA has also been the rung of ladder in establishing strong
military relations with Pakistan.
In recent years, the relationship has deepened even further and China has entered several
military projects and defense treaties with Pakistan. China has also been a perpetual source of
military equipment and has assisted Pakistan in setting up weapon production and
modernization facilities. Moreover, bilateral visits by officers from both the countries in
various military installations and academies / institutions and joint military exercise have
further deepened the historic ties having a futuristic vision of enormous potential. Few of the
defense deals and joint ventures between both countries are covered below:
JF-17 Thunder:
The PAC JF-17 Thunder or CAC FC-1 Xiao long is a light-weight, single-engine multi-role
combat aircraft developed jointly by the Pakistan Air Force (PAF), Pakistan Aeronautical

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Complex (PAC) and Chengdu Aircraft Industries Corporation (CAC) of China. Its designat ion
"JF-17 Thunder" by Pakistan is short for "Joint Fighter-17", while the designation "FC-1 Xiao
long" by China means "Fighter China-1 Fierce Dragon". The JF-17 was primarily developed
to meet PAF requirement for an affordable, modern multi-role combat aircraft as a replacement
for its large fleet of Dassault Mirage III/5 fighters, Nanchang A-5 bombers, and Chengdu F-7
interceptors. The two serial production aircrafts were delivered from China in 2009 and the
first Pakistani-manufactured aircraft was delivered to the PAF in a ceremony on 23 November
2009. The first squadron was inducted in the PAF in February 2010 and around 250 units shall
be added in the future. Many countries including Azerbaijan, Iran, Egypt, Turkey and
Venezuela have expressed interest in purchasing the JF-17 Thunder.
PAF Shaanxi ZDK-03 AEW&C:
The induction of Airborne Early Warning and Control System (AEW&C) aircraft in the PAF
has brought a revolution in air defense operations. In November 2010, roll-out ceremony of
Shaanxi ZDK-03 - AEW&C aircraft designed specifically for PAF was held in Hanzhong,
Shaanxi, China. On October 7, 2011, the first aircraft arrived at PAF Base Masroor. The
Chinese assistance in this regard is mandated to boost the existing professional relationship
between the two friendly armies. PAF plans to induct a total of four such types of aircraft in its
inventory.

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K-8 Karakorum Advance Training Aircraft:
The Karakorum-8 (K-8) is a single-engine, advanced jet trainer and light attack aircraft
designed and manufactured jointly by Hongdu Aviation Industry Corporation (HAIC) of China
and PAC to replace the ageing Cessna T-37 Tweet jet trainers currently in service with the
PAF. Pakistan and the China unveiled a decision in 1986 to jointly build the K-8 and total of
15 K-8s were produced between 1992 and 1996. Six were delivered to the PAF in 1994 after
which Pakistan decided to procure 75 more aircraft. It became part of the Sherdils (Lion Hearts)
aerobatics team of PAF in 2009 and carried out its first public display on 6 April 2010.

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Al Khalid Tank:
The Al-Khalid tank is jointly developed variants of a modern Main Battle Tank (MBT) by
Pakistan and China during the 1990s. The first production models entered service with the
Pakistan Army in 2001 whereas about 300 tanks were in service by 2009.
4.5 Joint Military Exercises:
Pakistan and China have been conducting joint military exercises aiming at mutual exchange
of experience and information through a comprehensive training program in real time. One of
such kind was held in November 2011 under the name of "YOUYI-IV" which was the fourth
joint military exercise between the two countries since 2004. The exercise was termed as a

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"true manifestation of a famous Chinese phrase that Pakistan-China friendship is higher than
the mountains and deeper than the oceans." Air forces of both the countries have also been
carrying out exercises and the duo has recently undergone a three-week air exercise titled
Shaheen 2 (Falcon 2) in Xinjiang with an aim to excel in the air combat capability with focus
on air power employment in any future conflict. The exercise was the second in a series of such
exercises, the first of which was held in Pakistan in March 2011. This Exercise was the first
occasion when an air force of other country participated in such an exercise in the Chinese
airspace.
4.6 Assistance in Counter Terrorism:
China has always acknowledged Pakistan's contribution and sacrifices in its fight against
terrorism. She has always called for bilateral cooperation in counter terrorism and enhancing
cooperation on the issue at bilateral, regional and multilateral levels. At the 7th round of
Pakistan-China bilateral consultations in Beijing on 15 April 2013, both sides expressed their
resolve to intensify and further deepen their existing cooperation on counter terrorism. Pakistan
and China hold regular and periodic consultations on counter terrorism and the next round of
consultations will be held in Islamabad during 2014. Future Engagements. Few of the future
projects between both countries are as under.

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AEW&C:
The PAF and Chinese aviation industries have mutually agreed for long term collaboration
and co-development in the fields of aircraft manufacturing and other related fields including
AEW&C. An MOU was signed in Islamabad between the PAF and the Chinese Aviation
Company, CETC, for the improvement and further development of Chinese AEW&C which
will be delivered to Pakistan in coming years.
UAVs:
Islamabad and Beijing inked two new military procurements contracts during the visit of
Chinese Premier Wen Jiabao to Islamabad last year, which included the procurement of 20
CH-3 Unmanned Combat Aerial Vehicles (UCAV) developed by the China Aerospace Science
and Technology Corp (CASC). The CH-3 is a Medium-Altitude Long Endurance (MALE)
unmanned platform and is capable of battlefield reconnaissance, fire adjustment, data relay,
intelligence collection, ground-strike missions and electronic warfare missions.
Type 054A Jiangkai Stealth Frigate:
China has agreed to assist for the purchase of the Chinese 4400 ton frigate. This agreement
will clear the financial problems of the Pakistan Navy and it will be able to purchase new
generation Stealth Type 054A Jiangkai II Multi-Role frigate which is equipped with the HQ-
16 medium-range air defence missiles.

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FC-20 / J-10B Fighter Jet: PAF is also in process of receiving its first FC-20 / J-10B fighter
jet which is powered by indigenous WS-10 engine.
4.7 Submarines:
China has also agreed to provide training to the personnel of the Pakistan Navy on the Chinese
submarines. Pakistan and China have already agreed earlier this year to jointly develop and co-
produce diesel electric submarines fitted with the Air Independent Propulsion to meet Pakistan
Navy's long standing requirement of six new generation of submarines.
- Al-Khalid II. Pakistan and China have recently signed a contract to manufacture an upgraded
version of the jointly developed Al-Khalid-I tanks with a name of Al Khalid-II. The contract
was signed by Pakistan's Heavy Industries Taxila and China's NORINCO at the Ministry of
Defense Production. The joint marketing of the Al-Khalid tank with China would open up
potential markets.
4.8 Armaments:
For Pakistan Aviation and Navy. The recent agreements will get Pakistan, FT-5 small-diameter
bombs for Army Aviation, and the Type 022 Hobei-class catamarans for Pakistan Navy. The
FT-5 small-diameter bomb contains a 35 kg warhead and has a circular error probability of 15
meters, or less than 50 feet. FT-5 have already been ordered for JF-17 Thunder aircraft.
Pakistan-China ties are to reach new heights as the two countries are also planning to link the
Karakoram Highway to the Gwadar port in Baluchistan through the Chinese-aided Gwadar-
Dalbadin railway which extends up to Rawalpindi. The idea encompasses greater promotion
of regional welfare and rapid economic growth which would reap enormous benefits for both
the countries.
The bilateral ties between both the countries are based on very strong footing and both have
been cooperating in almost all the fields. The number of military-related patents secured by
China's defense industry have increased by an average of 35% per year during the past decade,
indicating rapidly developing indigenous capabilities. Pakistan should accrue max advantage

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to "fast track" defense research and development programs and enhance industrial capability
by encouraging innovation.
4.9 Nuclear cooperation:
China has been a strong vocal and avid supporter of Pakistan’s nuclear power generation for
peaceful purposes. CHASNUPP-I is the commercial nuclear power plant in Punjab set up with
Chinese assistance by its CNNC (China National Nuclear Corporation) under International
Atomic Energy Agency (IAEA) safeguards. Construction of CHASNUPP-II started in
December 2005.
China has also assisted Pakistan in the provision of civil nuclear power plants and equipment,
and built plants in Mianwali District which include Chasma-I and Chasma-II with 300 MW
generation capacity for each plant. 2 China is also helping Pakistan to install three more nuclear
power plants at the same site i.e., Chasma-III (340 MW), Chasma-IV (340 MW), and Chasma-
V (1000 MW).3 China is building two more plants at Karachi i.e., K-Coastal-I and K-Coastal-
II with an energy generating capacity of 1100 MW from each plant . 4 When fully operational,
the total energy generating capacity of these nuclear plants would reach 3,380 MW of
electricity, which will help alleviate Pakistan's energy shortfall. All these plants have been, and
will be built under the safeguards of the International Atomic Energy Agency (IAEA). The
menace of terrorism and separatism are also handled by both sides from security and military
point of view to augment the existing military to military cooperation. Under the China-
Pakistan Economic Corridor (CPEC) more military cooperation has been taking place to ensure
the safety of Chinese workforce and Chinese assisted projects all over the country from Gwadar
to Khujerab. With growing security threats in the region, Pakistan and China have strengthened
security related military cooperation with each other over the past couple of years. Regionally,
India's military build-up and its increasing cooperation with the United States, Japan, and
Australia has been countered by the growing Pakistan-China defense cooperation over the
years. In this context, China has proved to be an increasing source of stability and security of
Pakistan. Both countries have developed closer maritime defense cooperation with each other

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in the Indian Ocean and in the South China Sea in recent years. In February this year, both
countries held a dialogue on maritime security in Islamabad to enhance bilateral maritime
cooperation, navigation security, coast guard exchanges, marine scientific research and rescue,
fisheries, and enhanced connectivity. The admirable point is that China has greatly reduced the
gap between use and purchase of weapons and equipment and their indigenous manufacturing
in Pakistan over the years. This is a matter of satisfaction for Pakistan. The all-weather
friendship greatly works in fostering mutual defense ties which are likely to be deepened in the
years to come.
Cornerstones of Sino-Pak military cooperation is the Chashma Nuclear Power Complex,
located near the Punjabi city of Chashma; Chashma Nuclear Power Plant 1 (CHASNUPP- 1,
or Chashma 1) and Chashma Nuclear Power Plant 2 (Chashma 2) have been constructed with
Chinese assistance, while Chashma 3 and 4 are underway131 and scheduled to be completed
by 2016 and 2017, respectively. In the international community, news of such deals has been
met with skepticism and controversy prevails. Earlier, agreements signed by China in 2009 for
Chashma 3 and 4 came at the heels of China’s membership at the NSG, However, Beijing
argued the “grandfather clause”132: namely, that reactors 3 and 4 were penned as part of earlier
deals (for Chashma 1 and 2) which China had already declared as part of its commitments
when it joined the Nuclear Suppliers Group. This may hold water since it was in 1986 that
China and Pakistan signed The Comprehensive Nuclear Cooperation Agreement that stated
that China would by 2011 construct four nuclear reactors in Pakistan.
The issue ruffles the feathers of other powers, such as India and the United States. India for its
part had to seek a waiver from NSG before its civilian deal with the US materialized any
further. The US has repeatedly urged China to seek a waiver if it aims to continue its assistance
to Pakistan’s nuclear program. However, the ramifications of putting pressure on China to seek
such a waiver can be adverse and felt worldwide; more than half the world’s reactors are
currently under construction in China, and it has become “the world’s living laboratory for new
nuclear reactor designs”.
Sino-Pakistani civilian nuclear cooperation continues unhindered. Last year saw talks to export
another 1,000 MW reactor to Pakistan, either to Chashma or to the Karachi Nuclear Power
Plant complex. In March 2013, China and Pakistan allegedly agreed to build an additional
reactor at the Complex - namely, Chashama 5.134 In June 2013, the Pakistani government
announced the go-ahead for the Karachi Coastal Power Project, 1,100-megawatt nuclear power
plant in Karachi with Chinese assistance. The project is scheduled to start from the next
financial year.

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In order to tackle Pakistan’s pertinent energy crisis, it was further reported that the Pakistani
government was in discussion with China regarding the construction of two other nuclear
power plants with a combined capacity of 2,000MW; which will be utilized for setting up
Karachi Nuclear Power Plant-2 (Kanupp-2) and Kanupp-3.135 The Karachi Coastal Power
Project was inaugurated by Nawaz Sharif on 26 November 2013, where the PM vowed that 6
more nuclear power plants would be constructed to curb the problem of electricity shortage in
the country - producing 40,000MW of electricity by 2050.
Beijing has insisted that any future nuclear cooperation with Pakistan is directed solely at
meeting the urgent and vast civilian energy shortages in the country. It further argues that the
plants do not violate NSG norms and will remain under the International Atomic Energy
Agency (IAEA) watchdog. Islamabad has also stated that the proposed reactors are crucial to
its efforts to generate 8,800MW of nuclear energy by 2030.
There prevails a “thin line” between civilian and military nuclear collaboration; despite IAEA-
aegis, peaceful nuclear cooperation is un-checked for weaponry proclivity. While Chinese
technology transferred to Pakistan is supervised by the IAEA, the UN agency is not allowed to
inspect sites or plants that fall under the purview of the military.
The Joint Fighter 17, or JF-17, is an example of China’s proven willingness to build Pakistan’s
domestic defense industry. The JF-17 is a low-cost, single engine multirole aircraft developed
jointly by Pakistan and China in the late 1990s. The JF-17’s initial purpose was to provide
Pakistan’s Air Force with a cheap alternative to Western fighter jets, especially at the time
when western countries had imposed sanctions on the country following the nuclear tests of
1998. Recently, Pakistan started to manufacture the fighter domestically; in 2010 it inducted
its first indigenous JF-Thunder squadron.
4.10 Conclusion
Sino-Pak relationship is often touted as being “all-weathered” and “time-tested”, and, labeled
with lavish hyperboles categorically exchanged between leaders of the two countries, such as
“higher than the Himalayas” and sweeter than honey”. A closer examination of this much-

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lauded bond reveals that it is true to a marked and meaningful extent. The consistency and
depth of the bonhomie is weaved into the stable, surrounding factors that govern region politics
– the key of which is, simply, geography.
A fixed and deep geo-political strategic alliance rooted in realism embalms the seemingly
unbridled “love affair” between Pakistan and China. The geographic dynamics can be said to
breed a natural coalition, dominating the strategic ambitions of both Beijing and Islamabad. In
this context the influence of India as well as United States, in addition to other actors such as
Russia, in the region is of important relevance. The nuances within this geographic matrix then
determine priorities of Sino-Pak relationship while keeping intact a similar and entrenched
cohesive outlook to most regional/global issues.
Lately, there is an emerging shift in focus within the Sino-Pak partnership wherein boosting
economic cooperation is being given precedence; enabling greater connectivity and trade and
inviting greater Chinese investment appear to top the agenda. This cooperation may ultimately
evolve to become a keystone of their relationship; however, as it stands, collaboration on this
front is not as substantial so as to define it in any way.
While there prevails a comprehensive cooperation between Pakistan and China, covering
myriad different domains, strong diplomatic and defense bonds make up the basic DNA
mapping of Pakistan-China relationship. Pakistani defense requirements were met by China as
early as the 1950s, and China is believed to have played a key role in creating a credible defense
for Pakistan. A lion share of Pakistani defense comes from China. This relationship grew from
defense/strategic cooperation to collaboration on inter-connectivity, the highlight of which was
the Karakoram highway. Beyond this, there is a widespread understanding of an “emotive
attachment” between Pak-China.
Historically, Sino-Pak relations has been unaffected by the changing governments in Pakistan
over the decades. However, the partnership agenda, or primacy of a certain sphere of
cooperation over another, may depend on who sits in Islamabad – e.g. military versus civilian
leadership. Prime Minister-elect Nawaz Sharif hails from a business background and won the
May 2013 parliamentary elections on the ticket of strengthening Pakistani economy. Thus a
focus on furthering connections with China in the commercial area is expected. Sharif’s agenda
ties in neatly with China’s short/long term economic – and strategic policies in the region.
While Islamabad and Beijing notable share a large set of common regional interests, there
remain a few points of dissension; for instance, vis-à-vis Afghanistan, the two countries
arguably have different concerns. It remains to be seen whether or to what extent these
differences impact the close cooperation between the two. Looking beyond 2014 when the US
scales back its presence from Afghanistan and the post-9/11 tension in US-Pak relations
potentially subsides, Pakistan’s interests are best served by maintaining good relations with
both countries and, especially, by focusing more on the quality of its economic relations with
them.
Of particular interest to both Islamabad and Beijing is the future of India’s footprint in

21
Afghanistan, which both parties are interested in reversing. Pakistan has and continues to push
for a settlement in Afghanistan that enjoys consensus from all stakeholders, including the
Taliban. This will increase Islamabad’s chance of regaining influence in Kabul, which it
perceives as having been increasingly overtaken by New Delhi since 2001 (toppling of
Taliban). Further developments in the Afghan reconciliation process will invariably affect
activities of jihadi groups in the area, as well as guide Islamabad’s future strategic agenda and
its relations to other regional actors. As it stands, the post- 2014 situation is fraught with
uncertainty and insecurity.
In the context of Sino-Pak relations, it can be forecasted that their entente cordiale will
continue. Despite differences in culture and religion – and the threat posed to China’s domestic
security, as well as Chinese personnel in Pakistan, by violent extremist elements in Pakistan’s
tribal area – a dedicated bonhomie prevails between the two countries. Moreover, past and
current trends in the spheres of diplomatic, economic and defense cooperation – along with a
staunch affinity rooted in common and consistent geo-strategic interests – point to a strong and
strengthening relationship.
5. Political Relations
5.1 Introduction
According to Pew Research Centre in 2014, Pakistanis have the most favourable view of China
after China itself. Maintaining close relations with China is a central part of Pakistan's foreign
the United States. In addition, Pakistan was one of only two countries, alongside Cuba, to offer
crucial support for the PRC in after the Tiananmen protests of 1989. China and Pakistan also
share close military relations, with China supplying a range of modern armaments to the
Pakistani defence forces. China supports Pakistan's stance on Kashmir while Pakistan supports

22
China on the issues of Xinjiang, Tibet, and Taiwan. Military cooperation has deepened with
joint projects producing armaments ranging from fighter jets to guided missile frigates.
5.2 Policies andgovernmental exchange ofprojects
The major and important events, policies and exchange of projects:
1950 – Pakistan becomes the third non-communist country, and first Muslim one, to
recognize the People's Republic of China.
1951 – Beijing and Karachi establish diplomatic relations.
1963 – Pakistan cedes the Trans-Karakoram Tract to China, ending border disputes.
1970 – Pakistan helps the U.S. arrange the 1972 Nixon visit to China.
1978 – The Karakoram Highway linking the mountainous Northern Pakistan with
Western China officially opens.
1980s – China and the U.S. provide support through Pakistan to the Afghan
guerrillas fighting Soviet forces.
1986 – China and Pakistan reach a comprehensive nuclear co-operation agreement.
1996 – Chinese President Jiang Zemin pays a state visit to Pakistan.
1999 – A 300-megawatt nuclear power plant, built with Chinese help in Punjab
province, is completed.
2001 – A joint-ventured Chinese-Pakistani tank, the MBT-2000 (Al-Khalid) MBT is
completed.
2002 – The building of the Gwadar deep sea port begins, with China as the primary
investor.
2003 – Pakistan and China signed a $110 million contract for the construction of a
housing project on Multan Road in Lahore.

23
2007 – The Sino-Pakistani joint-ventured multirole fighter aircraft – the JF-17
Thunder (FC-1 Fierce Dragon) is formally rolled out.
2008 – Pakistan welcomes the Chinese Olympic Torch in an Islamabad sports stadium,
under heavy guard amidst security concerns.
2008 – China and Pakistan sign a free trade agreement.
2008 – Pakistanand China to build a railway through the Karakoram Highway, in order
to link China's rail network to Gwadar Port.
2008 – The F-22P frigate, comes into service with the Pakistani Navy.
2009 – The ISI arrest several suspected Uyghur terrorists seeking refuge in Pakistan.
2010 – Pakistan and China conduct a joint anti-terrorism drill.
2010 – China donates $260 million in dollars to flood hit Pakistan and sends 4 military
rescue helicopters to assist in rescue operations.
2010 – Wen Jiabao visits Pakistan. More than 30 billion dollars’ worth of deals were
signed.
2011 – Pakistan is expected to buy air-to-air SD 10 missiles from China for its 250 JF
17 thunder fighter fleet
2013 – Management of Gwadar port is handed over to state-run Chinese Overseas
Port Holdings after previously being managed by Singapore’s PSA International, and it
becomes a matter of great concern for India.
2013 – Chinese Premier Li Keqiang visits Pakistan. Trade between China and Pakistan
hit a 12-month figure of $12 billion for the first time in 2012.
2013 – On 5 July 2013, Pakistan and China approved the Pak-China Economic
corridor which will link Pakistan’s Gwadar Port on the Arabian Sea and Kashghar
in Xinjiang in northwest China.The $18 billion project willalsoinclude the construction
of a 200km-long tunnel.
2013 – On 24 December 2013, China announced a commitment $6.5 billion to finance
the construction of a major nuclear power project in Karachi, the project which will
have two reactors with a capacity of 1,100 megawatts each.
2014 – Chinese Premier announced investment of $31.5 billion in Pakistan mainly in
countries energy, infrastructure and port expansion for Gwadar. According to The
Express Tribune initially projects worth $15–20 billion will be started which include
Lahore-Karachi motorway, Gwadar Port expansion and energy sector projects will be
launched in Gadani and six coal projects near Thar coalfield. The newspaper further
claimed that the government has also handed over to Pakistan Army the task of
providing fool-proof security to Chinese officials in Balochistan, Pakistan in a bid to
address Beijing’s concerns and execute the investment plan in the province, which will
get 38% of the funds.
2014 – On 22 May 2014, The governments of Pakistan and China on Thursday signed
an agreement to start a metro train project in Lahore, Express News reported. The

24
27.1 kilometres long track – named Orange Line – will be built at the cost of $1.27
billion.
2014 – On 8 November 2014, Pakistan and China signed 19 agreements particularly
relating to China–PakistanEconomic Corridor, China pledged a total investment worth
of $42 billion. While Pakistan pledged to help China in its fight concerning the Xinjiang
conflict.
2015 – On 20 April 2015, Chinese President Xi Jinping, accompanied by the First Lady
and a delegation of high-level officials and businessmen, visits Pakistan. It is the first
visit to Pakistan by a Chinese president after a gap of 9 years and the first foreign trip
of Xi in 2015. 51 Memorandums of Understanding are signed, including the plan of
"Pakistan China Economic Corridor".
2015 – Pakistan began circulating the Rs. 20 coin with the Pakistan and China flags to
commemorate the countries' lasting friendship.
Pakistan Embassy in Beijing, China
People Republic of China PRC Tower in Karachi (left) has offices of many Chinese
corporations.

25
5.3 Diplomatic Relations
Henry Kissinger was on a secret mission to China facilitated by the Government of Pakistan,
a fact known to very few people including Ambassador Hilaly.
Diplomatic relations between Pakistan and China were established on 21 May 1951, shortly
after the Republic Of China lost power in the Mainland in 1949. While initially ambivalent
towards the idea of a Communist country on its borders, Pakistan hoped that China would
serve as a counterweight to Indian influence. India had recognized China a year before, and
Indian Prime Minister Nehru also hoped for closer relations with the Chinese. However, with
escalating border tensions leading to the 1962 Sino-Indian war, China and Pakistan aligned
with each other in a joint effort to counter Indian encroachment. One year after China's
border war with India, Pakistan ceded the Trans-Karakoram Tract to China to end border
disputes and improve diplomatic relations.
Since then, an informal alliance that initially consisted of joint Indian opposition has grown
into a lasting relationship that has benefited both nations on the diplomatic, economic and
military frontiers. Along with diplomatic support, Pakistan served as a conduit for China to
open up to the West. China has in turn provided extensive economic aid and political support
to Pakistan.

26
Disputed territory ceded to China in 1963
Since the two sides established their "all-weather diplomatic relations", there has been
frequent exchanges between the two countries' leadership and peoples. For example, former
ChinesePremier Zhou Enlai received warm welcomes in allof his four visits to Pakistan. When
Zhou died in 1976, then Pakistani's Ambassador to China rushed to the Chinese Ministry of
Foreign Affairs at 8 in the morning without appointment. Upon arriving at the ministry, the
ambassador cried due to his grief in front of Chinese diplomats. In 2004, a road in Pakistani
capital Islamabad leading to the Diplomatic Enclave was named "Zhou Enlai Road". It is the
first road in Pakistan that is named after foreign leaders. On 27 May 1976, then Chinese
leader Mao Zedong, aged 83, received his last foreign guest Pakistani president Zulfiqar Ali
Bhutto despite his illness. On 22 May 2013, Chinese Premier Li Keqiang's airplane was
escorted by six JF-17 Thunder jets, jointly developed by the two countries, as it entered
Pakistani airspace. The premier was also received by both Pakistani president and prime
minister upon his arrival at the airport. On 20 April 2015, Chinese President Xi Jinping visited
Pakistan as his first foreign visit of the year, also the first by a Chinese president in 9 years.
Before his arrival, he published an article praising the friendship on Pakistani newspapers like
Jang. The Chinese president compared visiting Pakistan with visiting his brother's home. Like

27
previous visit by Premier Li, the airplane was escorted by 8 JF-17 Thunder jets. Xi was given a
grand welcome upon his arrival at Noor Khan airbase, a 21-gun salute and guard of honour
was presented to him.
When I was young, I heard many touching stories about Pakistan and the friendship between
our two countries. To name just a few, I learned that the Pakistani people were working hard
to build their beautiful country, and that Pakistan opened an air corridor for China to reach
out to the world and supported China in restoring its lawful seat in the United Nations. The
stories have left me with a deep impression. I look forward to my upcoming state visit to
Pakistan.
Pakistan's military initially depended almost entirely on American armaments and aid, which
was increased during the covert U.S. support of Islamic militants in the Soviet war in
Afghanistan. America under US President Richard Nixon supported Pakistan in the
1971 Bangladesh Liberation War. However, the period following the Soviet withdrawal and
the dissolution of the Soviet Union led indirectly to the increasing realignment of America
with the previously pro-Soviet India. The Pressler Amendment in 1990 suspended all
American military assistance and any new economic aid amidst concerns that Pakistan was
attempting to develop a nuclear weapon. Given the support that Pakistan had given them
during the War in Afghanistan, many Pakistanis saw this as a betrayal that sold out Pakistani
interests in favour of India. This belief was further strengthened as India had developed a
nuclear weapon without significant American opposition, and Pakistan felt obligated to do
the same. Consequently, the primarily geopolitical alliance between Pakistan and China has
since1990 branched out into military and economic cooperation, due to Pakistan's beliefthat
America's influence and support in the region should be counterbalanced by the Chinese.
With the U.S.-led war in Afghanistan, there is a general sentiment in Pakistan to adopt a
foreign policy which favours China over the United States. Washington has been accused
deserting Pakistan in favour of a policy that favours stronger relations with India, while
Pakistan sees China as a more reliable ally over the long term.
Since 9/11, Pakistan has increased the scope of Chinese influence and support by agreeing to
a number of military projects, combined with extensive economic support and investment
from the Chinese.
In twenty first century, Pakistan-China relations entered in new phase of development and
cooperation. When General Pervez Musharraf became new chief executive of Pakistan, he
focused to improve relations with China. In January 2000, Chief executive of Pakistan General
Pervez Musharraf visited China after few months after he came of power. Pervez Musharraf
met the Chinese Primer Zhou Rongji and discussed the problems related US sanctions on
Pakistan’s nuclear policy and democracy related issues. He also talked to enhance Pak-China
economic and trade relations. Premier Zhou Rongji stated military government in Pakistan
would not affect Pak-China relations and stated “In our nation-building endeavors, our two
countries have supported each other and have carried out fruit full cooperation”. Pervez

28
Musharraf stated that “Pakistan considers China as its most reliable and time tested friend”.
(Mahmood, 2000)
In 2001, two countries organized major celebrations on 50
th
anniversary of Pak-China
bilateral relations. In May 2001, Chinese primer Zhou Rongji visited Pakistan to attend 50
th
anniversary of Pakistan and China bilateral relationship. Zhou Rongji announced that China
would start cooperation on the initial development of Gwadar port and coastal highway in
Pakistan. Zhou Rongji also stated peace and stability in this region was priority of China. (Tao,
2012)
The terrorists attacked World Trade Center and Pentagon on 11 September 2001. The world
community reacted with shock. All condemned the attacks and expressed sympathy for
American people. The President of Pakistan, Pervez Musharraf issued a strong statement of
condemnation and sympathy. He also affirmed Pakistan’s readiness to join US war in fight
against terrorism. On the basis of this terrorist attacks, US entered in Afghanistan and
Pakistan became the front line state against War On terror. Pakistan’s alignment with west
did not affect the Pak-China friendship. (Sattar, 2010)
After 9/11 event, President Pervez Musharraf immediately visited China after becoming ally
of west on War of Terror. In December 2001, Pakistani President Pervez Musharraf visited
China on the invitation of Chinese President. He met President Jiang Zemin and discussed the
Pakistan’s alignment on War On terror and regional situation. Pervez Musharraf stated that
"The cornerstone of Pakistan's foreign policy is its close association and relationship with
China". China ensured their support for Pakistan as an ally of US against terrorism.
In 2002, China joined US and EU efforts to prevent a possiblewar between Pakistan and India.
Secretary of state Powell later praised China’s very helpful role. (Sattar, 2010) On March 2003,
Pakistan’s new Prime Minister ZafarullahKhan Jamali visited China.Zafarullah Jamaliwas first
foreign Prime Minister who was invited in China to met new Prime Minister Wen Jiabao. Both
states signed agreement on peaceful nuclear plant transmission, as well as economic sectors.
Both states agreed to establish Pak-China friendship forum.
In November 2003, President Pervez Musharraf went to China. During the visit, leaders of
both states signed the Pak-China Joint Declaration for mutual cooperation in all the fields.
(http://www.china.org.cn/world/) President Musharraf met President Hu Jintao and
discussed the situations of terrorism at regional and world level. Pervez Musharraf attending
the second annual conference of Boao Forum for Asia in China province of Hainan. (Umer,
2013)
In April 2005, Chinese Premier Wen Jiabao’s visit of Pakistan is marked as a new stage in the
burgeoning relations between good friends, good neighbors and good partners whose
friendship has withstood the test of time and international vicissitudes.Wen and Shaukat Aziz

29
singed Treaty of Friendship, Cooperation and Good Neighborly Relations pledging mutual
support in defense of sovereignty independent and territorial integration. Meanwhile, Wen
and his Pakistani counterpart Shaukat Aziz jointly announced to start the negotiation on a
free trade area between China and Pakistan and singed twenty one agreements to promote
close trade and economic ties. (Sattar, 2010)
In April 2005, Chinese President and Prime Minister sent sympathy messages to Pakistan on
train clash accident in Sind province. In 2005, President Pervez Musharraf visit to China. He
said, "We are proud of our ties with China. Our relationship with China is time-tested and
broad-based and this visit will be a landmark in further enhancing our political and economic
friendship."
In February 2006, President Pervez Musharraf asked China for support of Pakistan for
becoming full member of the Shanghai Cooperation Organization (SCO). Pakistan can play an
activerole in the peace, stabilityand development of the region. China’s Chairman of National
People's Congress, Wu Bangguo ensured their support against terrorism and appreciated
Pakistan's role in counter terrorism.
On ChineseWorld Affairs,an author launched abook on President General Pervez Musharraf.
In this book author described President Pervez Musharraf as universally recognizing leader
who had contribution in the peace of region as well as world. Professor Yang Daoin, the
author of the book titled "Iron-willed Statesman of the 21st century" presented a copy to
President Musharraf who was on a five day state visit to China.
In November 2006, President Hu Jintao visited Pakistan. He stated that "Pakistan was one of
the first countries to recognize China. Ever since our diplomatic relations began in 1951, we
have enjoyed mutual understanding, respect, trust and support and our friendship and
cooperation have flourished. We are truly good neighbors, closefriends, trusted partners and
dear brothers". (President Hu Jintao, Islamabad, 24 November 2006) Pakistan also gave the
highest civil award of Nishan-i-Pakistan to President Hu Jintao for idealist leadership and his
great contribution to strength Pakistanand China relations. Both states signedthe agreement
of Pak-China Free Trade agreement and their mutual cooperation in all fields.
On 8 August2008, Prime Minister Yousaf Raza Gilani went to China to attend the Beijing
Olympics. During this visit, he met President Hu Jintao and Premier Wen Jiabao and signed
several agreements. (http://www.pakbj.org.pk/) In October 2008, on his first foreign state
visit, after he became the president of Pakistan Asif Ali Zardari met the Chinese political
leadership, entrepreneurs and Chinese media. (http://www.pakbj.org.pk/) In this visit, both
states signed several agreements in the field of economy, technology, trade, agriculture, and
communications.
In October2008, Prime Minister YousafRaza Gilanireached China.He speciallywent to attend
the Asia Europe Summit Meeting (ASEM). Prime Minister met the group of Chinese corporate

30
leaders. He also invited Chinese businesses men to find business and joint ventures
opportunities in Pakistan. He also met with Heads of State and Government during ASEM in
which he met with Prime Ministers of Malaysia, Japan, Italy, Poland and India.
In April2009, President Asif Ali Zardari visited Hainan Island. He was there to attend Annual
meeting of Boao Forum for Asia. This meeting was attended by eleven Heads of States. The
President held a meeting with Premier Wen Jiabao. He also met President of China, Chinese
Investment Corporation leaders and China International Offshore Oil Corporation and
welcomed them to invest in Pakistan.
In August 2009,President Asif Ali Zardari visited Chinese provinces Hangzhou and Guangzhou.
He met with new leadership of the Communist Party 399 of Chinain these cities.Pakistanand
China signed three MOUs (Memorandum of Understanding) for cooperation in the field of
fisheries. President Zardari also invited Chinese cooperation in the field of agriculture, energy
sector and construction of dams in Pakistan. This visit of Pakistan’s President covered all
aspects of Pakistan and China relations.
In October 2009, Prime Minister Yousaf Raza Gilani went to China to attend the meeting of
the Shanghai Cooperation Organization (SCO) member states. He met with heads of eight
countries. He also met with Chinese president Hu Jintao and Prime Minister Wen Jiabao.
In July 2010, Pakistani President Zardari visited two Chinese cities Shanghai and Beijing. He
met with President and Prime Minister of China. President Asif Ali Zardari inaugurated photo
exhibition on Mohenjo-Daro in Shanghai. Both states signed six agreements related to
agriculture, healthcare, justice, media, economy and technology.
In November 2010, Zardari went to China at the invitation of Chinese President. He reached
Guangzhou to attend the opening ceremony of the 16
th
Asian Games. During this visit,
President Asif Ali Zardari stated the importance of Pak-China relations and Pakistan’s support
of China as a host in world’s sporting events.
In December 2010, Prime Minister of China Wen Jiabao visited Pakistan. During his visit, he
met with Prime Minister and President of Pakistan. Chinese Primer also held talks with
Chairman of Senate, Speaker of National Assembly, and leaders of different political parties
of Pakistan. He addressed with the Parliament of Pakistan. He met with Chairman Joint Chief
of Staff Committee, and head of Pak Army, Pak Navy and Pak Air forces. He also attended the
Pakistan and China business cooperation summit and visited the National Disaster
Management Authority. He inaugurated the “Pakistan-ChinaFriendship Centre” in Islamabad.
The joint statements emphase on the importance of China-Pakistan and stressed that
friendship and cooperation between the two states serve the main interests of them. Pak-
China friendship shares peace, stability and development in the region as well as for whole
world.

31
In 2010, Primer Wen Jiabao announced that next year would be celebrated as Pak-China
Friendship Year”. In 2011, Pakistan and China celebrated “Pak-China Friendship Year” at the
occasion of 60
th
anniversary of bilateral Pak-China relations. On May 2011, governments of
two sides and common people sent messages toeach others on 60
th
anniversary. In this year,
there was remarkable progress in the field of economic, trade, energy, defence, cultural,
sports and educational developments. Head of Chinese state council of information Wang
Chen visited Pakistan and attended the anniversary celebrations. In August 2011, President
Asif Ali Zardari visited China to attend China-Eurasia Expo and met the president of China. In
September, Chinese State councilor Meng Jian Zhu reached Pakistan. In November, Prime
Minister Gilani visited China to attend Shanghai Cooperation Organization (SCO).
In 2012, there were high level exchanges of visits from both states. There were several times
visits of President, Prime Minister, Chairman Senate, Speaker and Deputy Speaker National
Assembly, Ministers of different departments and different political parties’ delegations to
China. There were also high level visits of leaders and defense ministers of both sides. In
January 2012, Chief of Army Staff General Ashfaq Kiyani visited China. He met with President
of China and Chinese chief of Army staff and discussed the defence matters. After this, Chief
of Naval Staff visited China and attends Maritime cooperation ceremony of PNS Aslat. In
March 2012, Prime Minister Yousaf Raza Gilani visited China to attend Boao forum for Asia
Annual Conference. He met with the political leadership of China. In June 2012, President of
Pakistan Asif Ali Zardari ninth times visited China and attended 12
th
Shanghai Cooperation
Organization (SCO).During this visit, he met with president of Iran, Tajikistanand Afghanistan.
President Asif Ali Zardari met with president of China Hu Jintao and signed three MOUs in the
field of trade, economy, science and technology. In 2012, Pakistani parliamentary delegation
visited China and met Chinese communist party.
In September 2012, Chinese President Hu Jintao and Premier Wen Jiabao sent messages of
condolences to Pakistani President and Prime Minister on the incident of the two major
factory fire incidents.
In May 2013, Chinese Premier Li Keqiang visited Pakistan at the invitation of the government
of Pakistan along with Chinese Foreign Minister, Minister of Commerce, and Minister of
National Development and Deputy Secretary General of the State Council. During the visit,
Premier Li Keqiang met with President Asif Ali Zardari and with the leadership of Pakistan's
parliament, political parties and military.
In July 2013, Prime Minister Nawaz Sharif’s Visited China on the invitation of Premier Li
Keqiang. During the visit,Prime Minister Nawaz Sharif met with President, Premier Li Keqiang,
and Chairman of the Standing Committee of the National People's Congress of China and
corporate leaders and business community.

32
In June 2013, after Nawaz Sharif was elected he made China his first international official visit
as Prime Minister. In October, China’s Ambassador told Pakistan’s National Defense
University that “the Chinese government attaches great importance to developing relations
with South Asia, and takes South Asia as a key direction of China’s opening up to the west and
a prominent position in China’s neighboring diplomacy”. (Pantucci, 2014).
6. Technological Relations
7. Geographical Relations
Location of Pakistan and China
Pakistan is located in South Asia and is at the junction of Central Asia and Middle East, which
gives its location great significance. Pakistan's total land border is 6,774 kilometers long and it
borders four countries. Pakistan borders India in the east, Afghanistan and Iran in the west and
China is situated at the northeast. While surrounded by land from three sides, the Arabian Sea
lies in the south
Border between Pakistan and China
The border between Pakistan and China is nearly 523 kilometers long and is situated in the
northeast of Pakistan. A number of agreements took place between 1961 and 1965 in which
the borderline was determined between the two countries. The famous agreement called the
Sino-Pakistan Agreement or the Sino-Pakistan Frontier Agreement, was passed in 1963
between Pakistan and China, according to which both countries agreed on the border between
them.
Map

33
Comparison Table of Pakistan and China
Pakistan China
Location
Southern Asia, bordering the
Arabian Sea, between India
on the east and Iran and
Afghanistan on the west and
China in the north
Eastern Asia, bordering the
East China Sea, Korea Bay,
Yellow Sea, and South China
Sea, between North Korea
and Vietnam
Geographic coordinates 30 00 N, 70 00 E 35 00 N, 105 00 E
Map references Asia Asia
Area total: 796,095 sq km
land: 770,875 sq km
water: 25,220 sq km
total: 9,596,960 sq km
land: 9,326,410 sq km
water: 270,550 sq km
Area – comparative slightly more than five times
the size of Georgia; slightly
less than twice the size of
California
slightly smaller than the US

34
Coastline 1,046 km 14,500 km
Climate mostly hot, dry desert;
temperate in northwest;
arctic in north
extremely diverse; tropical in
south to subarctic in north
Land use arable land: 26.02%
permanent crops: 1.05%
other: 72.93% (2011)
arable land: 11.62%
permanent crops: 1.53%
other: 86.84% (2011)
Pakistan China
Land boundaries
total: 7,257 km
border
countries: Afghanistan
2,670 km, China 438 km,
India 3,190 km, Iran 959 km
total: 22,457 km
border
countries: Afghanistan 91
km, Bhutan 477 km, Burma
2,129 km, India 2,659 km,
Kazakhstan 1,765 km, North
Korea 1,352 km, Kyrgyzstan
1,063 km, Laos 475 km,
Mongolia 4,630 km, Nepal
1,389 km, Pakistan 438 km,
Russia (northeast) 4,139 km,
Russia (northwest) 40 km,
Tajikistan 477 km, Vietnam
1,297 km
regional borders: Hong
Kong 33 km, Macau 3 km
Natural resources land, extensive natural gas
reserves, limited petroleum,
poor quality coal, iron ore,
copper, salt, limestone
coal, iron ore, petroleum,
natural gas, mercury, tin,
tungsten, antimony,
manganese, molybdenum,
vanadium, magnetite,
aluminum, lead, zinc, rare
earth elements, uranium,
hydropower potential
(world's largest)
Irrigated land 199,900 sq km (2008) 629,380 sq km (2006)

35
Natural hazards frequent earthquakes,
occasionally severe
especially in north and west;
flooding along the Indus after
heavy rains (July and August)
frequent typhoons (about five
per year along southern and
eastern coasts); damaging
floods; tsunamis;
earthquakes; droughts; land
subsidence
volcanism: China contains
some historically active
volcanoes including
Changbaishan (also known as
Baitoushan, Baegdu, or
P'aektu-san), Hainan Dao,
and Kunlun although most
have been relatively inactive
in recent centuries
Geography – note controls Khyber Pass and
Bolan Pass, traditional
invasion routes between
Central Asia and the Indian
Subcontinent
world's fourth largest country
(after Russia, Canada, and
US) and largest country
situated entirely in Asia;
Mount Everest on the border
with Nepal is the world's
tallest peak
Total renewable water
resources
246.8 cu km (2011) 2,840 cu km (2011)
Pakistan and China

36
The Karakoram Highway, also known as the Eighth Wonder of the World, lies on the border
between Pakistan and China. It connects Sinkiang Uighur of China and Gilgit–Baltistan of
Pakistan and is one of the highest paved international roads in the world. The border is 523
kilometers long and is situated in the northeast of Pakistan. The famous Sino-Pakistan
Agreement made the border between the two countries official, and was passed in 1963.
Pakistan and India

37
On August 17, 1947 the 2,912 kilometers long border between Pakistan and India on the west
was made official. It was known as The Radcliffe Line named after its founder Sir Cyril
Radcliffe. One of the significant places for both countries on the border is Wagah. It is the
village from which the Radcliffe line was drawn separating India and Pakistan and is the only
road border crossing between them. Every evening ‘the lowering of the flags’ ceremony is
conducted there and people from both the nations bare witness to it.
Pakistan and the Arabian Sea

38
The coastline of the Arabian Sea which covers 1,046-kilometres lies on the south of Pakistan.
The Indus River and its tributaries flow into the Arabian Sea serving as an instrumental route
between Pakistan and other countries for conducting trade.
7.1 GEO-STRATEGIC COMPULSIONS IN PAK-CHINA RELATIONS
China in the early period of her inception opted for a closed-door policy. Pakistan-China
strategic relations began after the two countries signed the Border Agreement in 1963, which
was intended to counter Indian and regional American influence. The bond between Pakistan
and China is, therefore, crucial because it enables China to limit Indian ambitions to rise as a
regional power, to counter-balance the emerging US-India partnership and to enhance her
standing against India. The US is desirous of maintaining a situation wherein she remains a
dominant actor in the region; the US-India Civilian Nuclear Agreement signed by President
Bush in 2006 reveals this aspiration. Resultantly, the US is firm on holding its military presence
in the region particularly in Afghanistan. She is dynamically engaged in a “strategic” rapport
with India to buttress her regional dominion with a vision to check China’s admission to the
Persian Gulf and the Arabian Sea through Pakistan. India attained a convenient umbrella to
follow her own timehonored antagonistic agenda against Pakistan. In spite of the coalition with
Pakistan in the war against terror, the US is employing all means, both overt and covert, to
pressurize Pakistan in sustaining her agenda in the region. Moreover, India’s Pakistan mania,
her hegemonic designs and territorial clashes further strengthened ties between Pakistan and
China so that India’s anti-Pakistan aspirations may be checked.

39
China’s opening up overlapped with the Soviet breakdown and this shaped prospects for China
to develop her economic scope in Central Asia, meanwhile the newly liberated Central Asian
Republics (CARs) were also worried about their economic improvement.
The strategic alliance between Pakistan and China, that was previously intended to counter
Indian and regional American influence, opened up new dimensions of economic activities and
infrastructure development in the region. The regional policy, from China’s perspective,
consisted of generating a synergy of collaboration in matters of trade and energy with the CARs
and contiguous states for mutual development. Pakistan, in these circumstances, acts as a
regional prop of China and Central Asia that can play a part in her own domestic progress along
with development in Central Asia by increasing trade, transport and energy links. This
cooperation would also be beneficial for the whole region and the small states, especially the
energy-rich CARs. In order to fulfill the strategic needs of China, Pakistan always supported
her development policies and halted instability in the Xinjiang province from the Uyghur-
related militancy.
i) SINO-PAK TRADE RELATIONS: A BRIEF HISTORY
China, the biggest neighbor of South Asia, has projected soft power towards the region. She is
the world’s second largest economy. With the increasing economic and social developments,
China is hovering to play a central role in every area of international relations while positioning
herself as a centre of growth (Bahera, 2015). “Since 1978, she has pursued a policy of gradual
transition from a centrally planned economy to a market-based economy coupled with an ‘open
door’ policy that involved substantial liberalization of international trade and investment
regime” (Tennakoon, 2012). Improved port connections, more roads, up gradation of border
infrastructure and deepening political and trade relations are rapidly altering the entire range
of
128 Pakistan Economic and Social Review
China-South Asia relations. Chinese goods can be seen everywhere – by developing port
facilities in this region; she will open and expand markets for goods and services.
Pakistan and China have convergent interests and shared goals for a common stake of regional
peace and stability. China has transformed her contiguous zones into a commercial nucleus.
Pakistan and China established trade and commercial ties in the 60s. In 1963, the first bilateral
trade agreement was signed between them. In 2006, and later in 2009, both countries signed
Free Trade Agreements (FTAs).
China is Pakistan’s greatest economic hope and the second-largest trading partner after the
United States. Mutuality of interests and growing economic relations mainly in areas of trade
and investment are the hottest trends. Both sides have inked numerous agreements in the field
of economic cooperation and free trade.
With the changing regional and international apparatus after 9/11, Pakistan-China relations
took a new dimension of understanding and cooperation. In 2002, China started to heavily
invest in the Gwadar deep-sea port. In 2008, a railway via the Karakoram Highway to connect
China’s rail network to Gwadar Port was approved for construction. In 2013, the Gwadar port
was handed over to the state-run Chinese Overseas Port Holdings after earlier being managed

40
by Singapore’s PSA International (Small, 2015). Beijing is also believed to be involved in
transforming it into an energytransport hub (Panday, 2012).
China Pakistan Economic Corridor (CPEC) – the latest mega venture between the two nations
– shall accomplish its politico-economic purposes via trade and development and will be
effective in generating constancy in South Asia. Subsequent to its completion, it will function
as a crucial and focal point for trade amongst China, Middle East and Africa. The corridor will
shorten the 12,000 km long route that takes the Middle East oil to the Chinese ports (Abid and
Ashfaq, 2015).
In May 2014, Pakistan and China signed a deal to commence a Metro Bus project in Lahore
and an Orange Line track would also be built. In April 2015, 51 memorandums of
understandings (MOUs) were concluded, along with the plan of the CPEC. The bilateral trade
along with deeper economic integration through linkages in trade, energy, communications,
infrastructure, and connectivity will strengthen the process of economic development and a
prosperous destiny may be shared. Annual trade between Pakistan and China, according to
latest statistics, has increased from less than US $ 2 billion in 2006 to US $ 16 billion by 2015,
and with a 12 percent annual increase (The Nation, 20 March 2015) it is expected to further
increase to US $ 25 billion by 2017, therefore further consolidating the relationship.
ii) THE ‘BELT AND ROAD’ POLICY
The “One Belt One Road” plan incorporates an area with a population of 4.4 billion and a total
economic volume of US $ 21 trillion, which is 29 percent of the world’s total (Liping, 2015).
It is envisioned that the plan would knit much of Asia, Europe, Africa, and the Middle East
more close via latest infrastructure and free trade zones.
iii) CPEC AND ITS GEO-STRATEGIC DYNAMICS
CPEC is another milestone in the development of Pakistan-China relationship. Pakistan is a
significant strategic partner for China in order to get access to the Central Asian economies,
Southern Asian region, Africa and Middle East. The deep-sea port of Gwadar offers direct
access to the Indian Ocean and beyond (Abid and Ashfaq, 2015). With this insight, Pakistan
allowed Chinese direct investment as China is elevating her levels of economic development
and her strategic status in the Indian Ocean. In the milieu of altering regional and international
scenarios, CPEC, in order to safeguard common interests, represents a model of cooperation,
coordination and strategic communication between China and Pakistan to reinforce
connectivity in areas of trade and economy with states in the region to fulfill increasing energy
needs and enhance exports.

41
As the CPEC is said to be a game-changer (Iqbal, 2015), Pakistan may become a nucleus of
trade and commerce that will establish numerous trade and economic zones, roads and railways
infrastructure. If the corridor becomes operational, it may enhance economic and trade
collaboration in the area that will truly contribute to attaining regional peace and stability (Sial,
2014).
Chinese Premier Li Keqiang visited Pakistan in 2013 and unveiled the proposal to construct
the CPEC. The Chinese President Xi Jinping visited Pakistan and brought forward the
prospects of stability for Pakistan in the future (Irshad, Xin and Arshad, 2015). The passageway
is situated where the Silk Road Economic Belt and the 21st century Maritime Silk Road meet
– reflecting that regional amalgamation is an unavoidable measure that needs to be taken to
satisfy the demands of a globalized world.

42
Hamilton’s (an American consulting firm) famous geopolitical thesis of the development of a
‘String of Pearls’ by China reflects the aspirations of the Chinese state to establish and exert
its geopolitical influence over major communication choke points on the Indian Ocean and it
does so by magnifying its naval presence in the Ocean. The interest of China in the
development of the Gwadar port reflects its ambition of further strengthening its presence in
the Indian Ocean. About 80 percent of China’s oil passes through the Strait of Malacca – the
dependency on this particular maritime passageway renders China to develop its naval power
in the Indian Ocean.
iv) GWADAR PORT AND ITS SIGNIFICANCE
The Gwadar port will operate as a tail of the New Silk Road, which will connect China’s
Kashgar to different communication networks (Abid and Ashfaq, 2015). It holds an essential
position in the CPEC venture …. located close to the Strait of Hormuz, through which about
40 percent of the world’s oil supply flows. “Gwadar as a key shipping point could play a key
role in ensuring China’s energy security as it provides a much shorter route than the current
12,900km route from the Persian Gulf through the Strait of Malacca to China’s eastern
seaboard” (Chowdhury, 2013).

43
The port is intended to change Pakistan into a center of “commercial activities among the
energy rich Gulf and Central Asian states, Afghanistan, and China, and to offer the Pakistan
Navy with strategic depth beside its coast as a marine base” (Syed, 2013). Gwadar will also
permit China to expand her import routes for crude oil and broaden her influence in the Indian
Ocean.
The CPEC shall play the role of an energy corridor for China, as it lets China import oil from
a much shorter route. The CPEC also holds much geostrategic significance …. it will put
Pakistan and China in a strategic and beneficial position on the Arabian Sea, further
aggravating Indian concerns.
To counter the Gwadar port, India is investing in Iran’s Chabahar port. The Chabahar port will
provide access to India to the Arabian Sea from another point, and will also help the landlocked
Afghanistan, which has established strong and intimate ties with India.
7.2 GEO-ECONOMICS:REAPING ITS BENEFITS FROM PAK-CHINA
RELATIONS
Geo-economics is defined in two different manners: “as the relationship between economic
policy and changes in national power and geopolitics; or as the economic consequences of
trends in geopolitics and national power. Both the notions that ‘trade follows the flag’ (that the
projection of national power has economic consequences) and that ‘the flag follows trade’ (that
there are geopolitical consequences of essentially economic phenomena) point to what is called
geo-economics” (Baru, 2012).
The US skeptically views China’s rising economic power – it is said that the ‘Beijing
Consensus’ is taking precedence over the ‘Washington Consensus’. International game
changing institutions such as China’s Asian Infrastructure Investment Bank (AIIB) are
facilitating China in achieving its geopolitical goals and in its global economic proliferation.
When Britain signed up for the AIIB, analysts asserted that Britain has now become a player
of China’s global geo-strategic and geo-economic game. The CPEC and the new Silk Road are
also said to be Chinese instruments in its geoeconomic game.

44
Geo-politics and geo-economics are interrelated, however the latter might outmaneuver the
former as the use of armed forces has now become rare and war by commercial means is now
the principal focus of global clashes. Therefore, “geo-economics reflects the interdependence
of global and national economies” (Khan, 2003).
The global politics of the twenty-first century have assumed a new demeanor. Competition
among countries has taken a new form; competitors are now more interdependent. With the
switch away from bipolarity, globalization grew and geo-strategic primacies were reformulated
to give more emphasis to geo-economic considerations. Regionalism, within the process of
globalization, gained significance in making regional cooperation frameworks that focused on
economic integration and common development. The world has therefore become
interdependent in bilateral, regional and intra-regional contexts. The economic integration
between regional actors is deemed to be a source of global prosperity and peace.
South Asia is one of the least integrated regions in the world; where intra-regional trade is
only 3-5% of the total trade of the region, representing just over 1% of regional GDP (Tyagi,
2015). For trade and development, states in the region must come together. China is concerned
with the economic development and stabilization of the region especially her southwest flank
- Pakistan and Afghanistan. Now Pakistan and China are attempting to create a new alliance,
outside military cooperation, through economic cooperation that will further cement the Pak-
China friendship. The proposed economic corridor of around $ 46 billion (that is around 20 per
cent of Pakistan’s annual GDP), measuring around 3000 km, and offering
Pakistan with required economic infrastructure, will link the northwestern region of China’s
Xinjiang province with the Gwadar port in Pakistan via roads, railways and pipelines network.
By connecting its west to the Gwadar port, China aims at speeding up its economic
development, as it is the closest outlet than any Chinese coastal port. The economic corridor
will benefit trade between China, Pakistan, India, Afghanistan and eight other Central Asian
states flanked by both China and Pakistan.
i) WHY IS CHINA PLAYING THE GEO-ECONOMICS CARD?

45
China’s current greatest concern is energy security. Presently, its oil shipments pass through
the Strait of Malacca …. the Chinese are under a constant threat of a US blockade of the Strait.
Henceforth, a more reliable and shorter route via Pakistan is the solution to China’s energy
security issue.
The CPEC will provide the Chinese proximity to the mineral-rich areas of Pakistan and
Afghanistan – further fulfilling its energy security agenda. It is also worth mentioning that the
CPEC shall also give the Chinese contiguity to the oil and gas reserves of Iran, the untapped
gas reserves of Afghanistan, and to the gas and unexploited oil reserves of Balochistan.
China has been heavily investing in Africa in the recent past few years; in 2008 the figure was
US $ 7 billion and it reached a whooping US $ 26 billion in 2013 (Wharton School, 2015). The
West is greatly worried about the ‘burgeoning influence’ (The Economist, 2015) of the Chinese
in the
African continent, as the Chinese have increased their investment and trade levels with the
African states considerably.
Satisfying its African and Asian geo-economic scheme, the CPEC will also give the Chinese a
closer passage for trade with Africa and will also ease the transport of capital and machinery
from China to Africa.
India is dismayed by the CPEC and stridently opposes the corridor passing through Kashmir.
Premier Modi said that the project was unacceptable and lifted the matter with China which
she laid off by asserting that it was just a business venture. India, with a huge economy, aspiring
hard to become a global power and wanting to expand her influence in Central Asia for trade
and energy transportation, has taken ardent interest in Iran’s Chahbahar Port. All the more,
Pakistan’s land routes could be used for trade through Chahbahar if the two countries could
confide through economic integration.
ii) BENEFITS TO CHINA
Chinese growth strategies are export-led and for this reason she desires to expand trade routes.
From numerous projects including Gwadar project, China is likely to benefit strategically and
economically.
● An oil shipment from the Gulf to Strait of Malacca to China takes 45 days to reach its
destination, whereas via the Gwadar port, the same oil shipment will reach China in just 10
days.
● The project gives China access to the Indian Ocean and beyond.
● China will be able to advance her influence in Central and South Asia.
● China is the largest oil importer in the world. For her, energy security is of great concern. A
pipeline will shorten thousands of kilometers of ocean trek via Southeast Asia.
● The projected Corridor will shorten the route for China’s power imports from Middle East
by 12,000 kms (Jidong, 2013: 118).
● A link will be offered to China’s undeveloped far-western region to deep-sea port of Gwadar
on the Arabian Sea via Kashmir through an intricate network of roads, railways, pipelines,
energy and business zones.
● The project will boost trade with CARs, the Middle East and Africa.
● Gwadar port gives China a strategic location in the energy rich Caspian Region.

46
● The deep-water Gwadar port at the mouth of the Strait of Hormuz is very economical for
China. She gets an opportunity to use the direct approach to Gulf of Aden and Persian Gulf
merely traveling 2500 Km on the existing Silk route. ● Gwadar Port can allow China to oversee
the Sea Lines of Communications (SLOCs) (just 460 km away from Karachi); to monitor the
maritime US occupation in the Persian Gulf, and the Indian Naval Bases of Gujarat and
Mumbai. Approximately 60% of China’s power resources approach from the Persian Gulf and
are carried through this route (Ashraf, 2015).
● The management and usage of the Gwadar port under the Chinese lets China establish its
presence on the Indian Ocean and near the Strait of Hormuz. This also lets China add Gwadar
to its ‘string of pearls’.
iii) BENEFITS TO PAKISTAN
Pakistan welcomed Chinese investments for social and economic development that are likely
to develop infrastructure, roads, highway, ports, and energy and communications sectors.
● Gwadar port, on the Balochistan coast, is expected to encourage investments, boost trade
flows and serve as a regional hub for commercial traffic that can influence the geostrategic
milieu of the region. Pakistan will gain profits in transit fees (Azeemi, 2007).
● Chinese marine presence is expected to advance Pakistan’s coastal defense. Gwadar will also
buttress Pakistan to check SLOCs starting from the Persian Gulf and bottleneck the Strait of
Hormuz (Jidong, 2013).
● The port will facilitate transmission of Central Asia’s huge power resources to world markets.
● The inception of international trade via Gwadar will create new stakeholders in Afghanistan
that will help in normalizing situation in the war-torn Afghanistan. ● The project will boost
trade with CARs and the Middle East.
● The project can fulfill Pakistan’s energy needs that are beyond her indigenous production. It
would make an effort to mend Pakistan’s dilapidated power infrastructure. By 2017, some $
15.5 bn worth of wind, coal, solar and hydro energy projects would be materialized and add up
10, 400 megawatts of energy to Pakistan’s national grid (Bhattacharjee, 2015).
● Outside the CPEC framework, China plans to build more than one billion USD worth of
infrastructure in Pakistan; including a six-lane 1,240 km expressway between Karachi and
Lahore which is scheduled to complete by 2017, up gradation of Karakoram Highway, and
modernization of transportation in Rawalpindi, Karachi, Lahore, and three other Pakistani
cities.
● Pakistan and China were geostrategic allies, and are now moving forward towards being geo-
economic partners also.
iv) AREAS OF DISCOMFORT
The successful implementation and well-timed completion of the China Pakistan Economic
Corridor project is contingent upon several factors. The government of Pakistan and especially
the government of Balochistan must ensure that the security environment of the areas through
which the CPEC will pass through is safe and protected. The Pakistan Army has established a

47
Special Security Division (SSD) for safeguarding the lives and properties of the construction
and administration personnel of the CPEC.
Although the bond between China and Pakistan is said to be indissoluble, it may become
weaker due to any misapprehensions between the two on the issue of the Uyghur militants,
upon which China has doubts that non-state actors in Pakistan train them, and these militants
then travel to China through the Xinjiang province.
Another factor that may dampen the spillover benefits of Pakistan and China’s geo-economic
alliance is Pakistan’s participation in the War on Terror (WoT). The WoT has led to the
destruction of life and property in Pakistan and has gravely affected peace of this nation.
However, the ongoing Operation ‘Zarb-e-Azab’ against militant outfits in North Waziristan,
which is contiguous to Afghanistan, has led to a reduction in the terrorist attacks in Pakistan.
In September 2015, The Washington Post published a report and stated that Pakistan has seen
a 70% decline in the annual number of terrorist attacks.
Lack of good governance, widespread corruption and incompetent public institutions add to
the list of the concerns of the Chinese government and companies willing to invest in Pakistan.
7.3 Regulatory Framework of Mineral Resources Sector in
Pakistan and Investment Proposal to Chinese Companies in
Pakistan
Being an agricultural country, around 68% population of Pakistan is concerned directly or
indirectly to agriculture. Moreover Pakistan is also rich in natural resources. But it’s very
miserable that this sector in Pakistan contributes less than one percent to the national GDP at
the end of fiscal year 2011/2012 . It is a very minute contribution given to the total GDP instead
of having an immense quantity of mineral resources. This contribution to the total GDP can be
increased to 10% - 20% in the next ten years which would be influential for the socioeconomic
development in the country. In 1995, government of Pakistan formulated through a broad-
based stakeholder’s consultation process, and launched the National Mineral Policy .
The policy was aimed to enhance the investment and operational environment of the mining
sector to attract local and foreign direct investments (FDIs). The revised NMP of 2012 (NMP-
2) is geared at identifying and learning from the challenges of the first plan by focusing on five
thematic areas:
1) increasing contribution to GDP;
2) international competitiveness and partnership;

48
3) coordination between state and provincial institutions;
4) sustainable development; and
5) Encouraging small scale local mining.
i) Physical Geography of Pakistan
Pakistan has a landmass of 796,096 km2, making it the eights largest countries in Asia, and a
population of over 187 million with a growth rate of 1.6%/annum making it the sixth most
populous country in the world. Located at the crossroads of the strategically important regions
of South Asia, Central Asia and Western Asia, Pakistan has a 1046-kilometre (650 mi)
coastline along the Arabian Sea and the Gulf of Oman in the south and is bordered by India to
the east, Afghanistan to the west and north, Iran to the southwest and China in the far northeast
and the geographical mapping location of Pakistan by the geology survey of Pakistan.
ii) Physical Geography of China
It is the world’s most populous country and second largest country after Russia, with a
population of over 1.35 billion. The People Republic of China (PRC) is a single-party state
governed by the Communist, with its seat of government in the capital city of Beijing. It
exercises jurisdiction over 22 provinces, five autonomous regions, four direct controlled
municipalities (Beijing, Tianjin, Shanghai, and Chongqing), and two mostly self-governing
special administrative regions (Hong Kong and Macau). The PRC also claims Taiwan which
is controlled by the Republic of China .
China shares its border with fourteen countries. Being the world’s largest economy Chinese
companies invest in all over the world in the field of information technology, minerals
resources, unconventional energy production sources, agriculture, electronics industry etc.
Chinese investors and companies are in heavy collaboration with different countries in different
fields for example Pakistan, India, Arab states and in African countries. Being a neighbor of
Pakistan, different Chinese companies like cellular, exploration, and construction companies
are having a great setup in Pakistan.
iii) Chinese companies willing to invest in oil and gas sector
Chinese oil and Gas companies have expressed deep interest to make contribution in the oil
and Gas sector of Pakistan to cater the growing demand of the country.
The interest was shown by the representatives from private and public sectoroil and gas
companies of China who participatedin the workshop on Pakistan-China cooperation in the
field of oil and Gas sector held in Islamabad today.
Mr. Arshad Mirza,Secretary Ministry of Petroleum and Natural Resources led the Pakistani
side while Mr. Yang Lei, DG National Energy Administration, China, was heading the Chinese
delegation.
This was the first workshop between the two countries onoil and gas sector wherein both sides
agreed to foster bi-lateral cooperation in the petroleum sector.
The workshop was informed that Pakistan is endowed with an estimated 160 Trillion Cubic
Feet (TCF) of natural gas reserves including 105 Trillion Cubic Feet (TCF) of Shale gas

Pakistan China Relations / Friendship (Detailed Report/ Document)

Pakistan China Relations / Friendship (Detailed Report/ Document)

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