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55 Years of Pakistan-China Relationship Author(s): Haris Raqeeb Azeemi Source: Pakistan Horizon, Vol. 60, No. 2, PAKISTAN'S FOREIGN POLICY ANALYSIS (April 2007),

pp. 109-124Published by: Pakistan Institute of International AffairsStable URL: http://www.jstor.org/stable/41500066Accessed: 02-06-2015 09:18 UTC

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55 Years of Pakistan-China Relationship

Haris Raqeeb Azeemi

Pakistan and China have successfully maintained their cordial ties since the establishment of their diplomatic relations, coping with all challenging scenarios, while serving their national interests. As they celebrated 55 years of their diplomatic ties in 2006, both states confronted a completely new regional and international scenario with China emerging geo-economically as a regional power. Over the years, Beijing has been successful in generating its own economic sphere of influence by developing a huge export capacity along with a robust market. On the other hand, Pakistan had its own way with a long- standing rivalry with India and then as a 'front line state' in the war against terrorism after 9/11.

A multidimensional strategy was needed on the part of both Pakistan and China to maintain their 'strategic partnership', while at the same time preserving their regional and international interests. India's increasing interest and influence in the region and its growing cooperation with the US was alarming for Pakistan and China. At this stage of their relationship, Pakistan realized China's importance in the context of its increasing influence upon India and decided to use that positively without being affected by it. Chinese support is also crucial for Pakistan in getting access to the Far Eastern and Central Asian economies. With this realization, Pakistan opened up its door for Chinese investment at a time when China was attaining a high geo-economic growth in the region along with its strategic status in the Indian Ocean. This led their relationship towards a more strengthened partnership which covers almost every important area of their cooperation.

Background of cooperation

Pakistan was the first Muslim and third non-communist state to recognize the People's Republic of China in 1950. That proved to be a prelude to establish formal diplomatic relations between the two countries in 1951. In April 1955, Chinese Premier Zhou Enlai and Pakistan Prime Minister Mohammad Ali Bogra held their first meeting during the Bandung Conference. This meeting played an important role

Haris Raqeeb Azeemi is Research Assistant at the Pakistan Institute of International Affairs.


110 PAKISTAN HORIZON

in promoting understanding, and developing friendly relations and cooperation between the two countries.

Key Events in Pakistan-China Relations May 1951: China and Pakistan established diplomatic relations. April 1955: Premier Zhou Enlai held talks with Pakistan Prime Minister

Mohammad Ali Bogra during the Bandung Conference, and both sides agreed to strengthen their bilateral ties.

October 1956: At the invitation of the Chinese government, Prime Minister Hussein Shaheed Suhrawardi paid an official visit to China.

December 1956: Premier Zhou Enlai visited Pakistan. January 1963: China and Pakistan signed their first trade agreement. March 1963: The two countries signed a boundary agreement on China's

Xinjiang province and the adjacent areas whose defence is under the actual control of Pakistan.

February 1964: Premier Zhou Enlai visited Pakistan. December 1964: President Ayub Khan visited China. November 1970: President Yahya Khan visited China. May 1980: President Zia-ul-Haq visited China. October 1982: The Pakistan-China Joint Committee of Economy, Trade and

Technology was set up. February 1989: Prime Minister Benazir Bhutto visited China. November 1989: Premier Li Peng visited Pakistan. December 1996: Chinese President Jiang Zemin paid a state visit to

Pakistan, during which the two countries decided to establish a comprehensive partnership.

May 2001: Premier Zhu Rongji visited Pakistan. December 2001: President Pervez Musharraf paid a state visit to China. March 2003: Prime Minister Mir Zafarullah Khan Jamali paid an official

visit to China. November 2003: President Hu Jintao held talks with President Musharraf in

Beijing. December 2004: President Hu Jintao met Prime Minister Shaukat Aziz in

Beijing. April 2005: Prime Minister Wen Jiabao visited Pakistan. February 2006: President Musharraf paid a visit to China. November 2006: President Hu Jintao paid an official visit to Pakistan. Free

Trade Agreement was signed during the visit. April 2007: Prime Minister Aziz visited China.

Source: Xinhua News , http://news.xinhuanet.com/english/

Pakistan voted for a bill concerning the restoration of China's legitimate rights in the UN in 1961. After the 1962 Sino-Indian war and the 1965 Pakistan-India war, an alarming situation was created for not


PAKISTAN-CHINA RELATIONS 111

only Pakistan but also for China in terms of regional security. Both countries then decided to enhance cooperation in every field, especially in defence and nuclear technology. In 1963, the two states signed an agreement on border sharing and surveillance. To enhance communication links, both states decided to construct the Karakoram Highway, linking China's Xinjiang Uygur autonomous region with the Northern Areas of Pakistan. At that time, there was a mutual need to counter threats posed by the Soviet Union and India.

China supported Pakistan, both diplomatically and economically in the latter's two wars with India in 1965 and 1971. The creation of the Joint Committee for Economy, Trade and Technology in 1982 was a significant development in strengthening the strategic partnership between the two states. In the late 1980s, the sale of M-ll missiles and related technology to Pakistan from China was under consideration but in August 1993, the US imposed sanctions on China for allegedly transferring M-ll missile technology to Pakistan. China responded by calling the sanctions groundless and threatening to scrap its promise to abide by the Missile Technology Control Regime (MTCR) guidelines.1 Along with nuclear and defence cooperation, Pakistan and China also increased cooperation in the economic field. With many important trade agreements, Pakistan opened up its market for Chinese investment that proved to be vital for their mutual benefit.

Major areas of cooperation

Defence cooperation

China is considered to be Pakistan's most trusted and enduring military ally. After the 1965 Pakistan-India war, Pakistan and China realized the importance of their bilateral defence cooperation and from then onwards, China has been supporting Pakistan to build a strong military and defence infrastructure. Both the countries have established strong defence ties and cooperated with each other in every possible area in this regard. Several joint military exercises have also been conducted by Pakistan and China with the recent ones in August 2004 and an eight- day joint exercise in December 2006. There are many indications that not only are the respective governments of the two countries engaged in close defence cooperation, but the two militaries have also established strong links. The main motive of the two states behind this close collaboration is

1 'China and the missile technology control regime/ Nuclear Threat Initiative Database Report, www.nti.org



to counter India's increasing influence in the region and to maintain the balance of power in South Asia.

China provided assistance to Pakistan in setting up facilities at the Heavy Rebuild Factory (HRF) at Taxila, which, in the 1980s, started licence production of the state-of-the-art Chinese T-69 Main Battle Tanks (MBTs). Later, a protocol was signed between China and Pakistan to set up facilities for the licence production of Chinese T-69 II BMPs ( Boyevaya Mashina Pekhoty, an infantry fighting vehicle). China's Norinco has also helped Pakistan in the manufacture of Chinese T-69 and T-85 II MBTs and M-113 Armoured Personnel Carriers. Similarly, the Pakistan Aeronautical Complex at Kamra was established with Chinese assistance. The F-6 Rebuild Factory was established as a turnkey project by China, which became operational in November 1980.

Al-Khalid

The indigenous development of Al-Khalid began in 1988 with the help of China. Afterwards, HRF, which was renamed as Heavy Industries Taxila (HIT) in September 1992, started its production on its own in Pakistan.

Karakoram-8 trainer/fighter

China National Aero Technology Import Export Corporation (CATIC), China Nanchang Aircraft Manufacturing Company (CNAMC) and the Pakistan Aeronautical Complex () worked on a joint venture of Karakoram-8 (or K-8) trainer/fighter.

Super-7 fighter

A joint project for the preliminary design of the Super-7, also known as FC-1, was concluded between CATIC and Grumman (USA). An agreement in this regard was signed in October 1988, but afterwards suspended by the US government following the Tiananmen Square crisis of June 1989. Later, to revive this project, CATIC signed a fresh contract with in 1992.

Missiles

Pakistan's missile development programme started in the 1980s with active assistance from China. The help extended by China was thought to



be crucial for Pakistan's successful testing in early 1989 of the Hatf II missile and some other missile systems afterwards.2

China has provided Pakistan with important technical assistance for F-7 fighters, a version of the T-96 main battle tank, and subsidizing the future construction of four frigates for the Pakistan Navy. During President Musharrafs visit to Beijing in February 2006, China committed to deliver the first small batch of JF-17 Thunder Aircraft to Pakistan by 2007. On 23 May 2006, Pakistan clinched a 600 million dollar defence deal with China which included the construction of four F22P frigates for the Pakistan Navy, the upgrading of the Karachi dockyard and the transfer of technology for the indigenous production of a modern surface fleet.3 During the Chinese President's visit to Pakistan in November 2006, the Pakistan Air Force signed a memorandum of understanding (MoU) with a China Electronic Technology Corporation (CETC), to jointly develop aircraft equipped with long-range early warning radars.4

Nuclear technology

In 1986, China concluded a comprehensive nuclear cooperation agreement with Pakistan. The same year, Chinese scientists started assisting Pakistan in the enrichment of weapons-grade uranium. China also reportedly transferred enough tritium gas to Pakistan for ten nuclear weapons. Since then, China has supplied Pakistan with a variety of nuclear material and services, ranging from uranium enrichment technology to research and power reactors. In 1993, China and the International Atomic Energy Agency (IAEA) signed an agreement to apply IAEA safeguards to a Chinese nuclear power station sold to Pakistan (INFCIRC/418). It was alleged that Chinese assistance in the construction of a 40 MW reactor at Khushab could provide Pakistan with plutonium for its nuclear programme. However, both China and Pakistan rejected all those allegations, making it clear that their nuclear cooperation is only for peaceful purposes.5

The nuclear deal reached between India and the US on 2 March 2006 was viewed as a security threat by both Pakistan and China in the

2 Tarique Niazi, 'Thunder in Sino-Pakistani relations', www.asianresearch.org 3 Takistan-China relations,' IPCS Special Report, no. 26, June 2006, www.ipcs.org 4 Dawn (Karachi), 25 November 2006. 5 'China's nuclear exports and assistance to Pakistan,' Center for Non- Proliferation Studies Report, http://cns.miis.edu



region. Pakistan made earnest efforts to convince Washington to conclude a similar nuclear deal with Islamabad. Once the US made it clear that no such deal was possible with Pakistan, Islamabad turned towards Beijing to rule out a possible conventional imbalance in the region. China had already been helping Pakistan in building initial nuclear weapons designs and the development of Pakistan's nuclear weapons complex; Pakistan's short and medium range solid fuel missile technology; and in the development of Pakistan's Land Attack Cruise Missile, tested in 2005.

China maintained its civilian nuclear cooperation with Pakistan to help meet latter's growing energy needs. An agreement to 'further deepen cooperation in peaceful application of nuclear power' was signed during President Musharrafs visit to China in February 2006.6

Economic cooperation

Pakistan is not merely expanding its defence cooperation, it is also improving its economic cooperation with China and, subsequently, attempting to reposition itself as an important trade route in South Asia.7 Pakistan and China concluded their first trade agreement in 1963 with a significant increase in diplomatic exchanges between the two countries. The trade volume between China and Pakistan increased by 39 per cent in 2005 to 4.26 billion dollars. The balance of trade, however, remains overwhelmingly in China's favour, whose exports amounted to 1.8 billion dollars compared to Pakistan's 575 million dollars.8 In the first quarter of 2006, bilateral trade was 1.018 billion dollars, 42.3 per cent more than the same period last year. Furthermore, since 2003, China has emerged as a major trading partner for Islamabad. Bilateral trade between China and Pakistan is less than half the trade volume registered between India and China, which was 13.6 billion dollars in 2005.

6 Tarique Niazi, op. cit. 7 Xinhua News , 17 May 2006, http://news.xinhuanet.com 8 The Hindu (Chennai), 9 December zUU5.



Pakistan-China Trade (in million dollars)

Year Exports Imports Total Balance

1999-2000 180.326 471.527 651.853 (-) 291.201

2000-2001 303.548 524.138 827.686 (-) 220.59 "21-2002 228.631 575.219 803.85 (-) 346.588 2002-2003 244.591 839.056 1083.64 (-) 594.465

2003-2004 288.259 1153.470 1441.729 (-) 865.211

2004-2005 354.092 1842.775 2196.867 (-) 1488.683 2005-2006 (July- 223.767 1331.331 1555.098 (-) 1107.564 December)

Source: Fazal-ur-Rahman, 'Pakistan-China Economic Relations: Opportunities and challenges,' Strategic Studies (Islamabad), vol. 26, no. 2, Summer 2006, p. 61.

During President Musharrafs visit to China in 2001, the total aid package extended to Pakistan by the Chinese government was about 350 million dollars, both in terms of grant and loan. The Chinese government extended a 100 million dollars grant to Pakistan for various projects. An amount of 200 million dollars was made available for concessional financing. In addition, there were several projects totalling 260 million dollars with Chinese funding. These included a hydel power station, sub- stations for Water and Power Development Authority (WAPDA) and transmission lines.9 An MoU was signed during Prime Minister Aziz's visit to China in 2004 on a protocol on Preferential Trade Agreement. During a meeting of senior officials of China's state-run Shenhua Group with Prime Minister Aziz in Beijing, it was decided to start the Thar coal power project as early as possible. Most importantly, the two sides reviewed progress on the 40 million dollar Gwadar port project.10

9 Dawn , 21 December 2001. 10 Ibid., 16 December 2004.



Pakistan's investment in China (10,000 dollars)

Year Number of Contractual Actual projects value investment

2003 19 1949 96

2004 21 3210 7148

Total till Q AKA 1700 17 2004 Q

^ AKA

1700 17

Source: Fazal-ur-Rahman, 'Pakistan-China economic relations: Opportunities and challenges/ Strategic Studies , vol. 26, no. 2, Summer 2006, p. 65.

China's investment in Pakistan (10,000 dollars)

Year Number of Contractual projects value 200 3 4 930 200 4 3 7344 Total till 2004 34 10,411

Source: Fazal-ur-Rahman, Takistan-China economic relations: Opportunities and challenges/ Strategic Studies , vol. 26, no. 2, Summer 2006, p. 65.

Sector-wise Chinese investment July 2004-June 2005 (in dollars)

Sectors FDI from China

Metal Products 5,214

Transport Equipment (Motorcycles & automobiles)

'

Construction 189,000

Communications 22,287

Others 76,194 Total 443,763

Source: Fazal-ur-Rahman, Takistan-China economic relations: Opportunities and challenges,' Strategic Studies , vol. 26, no. 2, Summer 2006, p. 66.



President Musharraf and Chinese President Hu Jintao oversaw the signing of a landmark Free Trade Agreement by the commerce ministers of the two states in Islamabad on 24 November 2006. The FTA could triple Pakistan-China bilateral trade to 15 billion dollars within five years. Pakistan, after Chile, became the second country to conclude an FTA with China. The architecture of the bilateral FTA includes trade in goods and investments in the first phase, and it has been decided to negotiate on trade in services during 2007 to enlarge the coverage of the FTA. Both sides agreed to scale down customs duty to zero per cent on 5,104 tariff lines (products) in three years and on 3,942 items from zero to five per cent within five years after the implementation of the agreement.11

Tariff Reduction Schedule

Not later Not later Not later Existing than 1 than 1 than 1 Tariff January January January

2006 2007 2008 16 per cent 10 per - , , 5 - per cent

, 0 per cent and above , cent 5 10 per g g per cent 0 per cent cent Less than 5 , , , , 0 per cent

, 0 per cent , 0 per cent

, per cent ,

Source: Fazal-ur-Rahman, 'Pakistan-China economic relations: Opportunities and challenges/ Strategic Studies , vol. 26, no. 2, Summer 2006, p. 63.

The Early Harvest Programme between the two countries, which was put into operation on 1 January 2006, has been merged into the FTA. In the overall package, Pakistan will get market access at zero duty on industrial alcohol, cotton fabrics, bedlinen and other home textiles, marble and other tiles, leather articles, sports goods, fruits and vegetables, iron and steel products, and engineering goods. China will also reduce tariff by 50 per cent on fish, dairy sectors, frozen orange juice, plastic products, rubber products, leather products, knitwear and woven garments. Pakistan has given market access to China mainly on machinery, organic, and inorganic chemicals, fruits and vegetables,

11 Ibid., 25 November 2006.



medicaments and other raw material for various industries, including the intermediary goods for engineering sectors.12

Energy sector cooperation

China agreed to help Pakistan to set up another 300MW nuclear power plant at Chashma, during Prime Minister Jamals visit to China in March 2003. 13 The emphasis on making Pakistan an energy and trade corridor for the region was consolidated at a high-level meeting in April 2006, where both countries agreed to increase cooperation in the energy sector, promising to give China access to the gas and oil resources of Central and West Asia. An MoU was signed on building this energy corridor, and it was suggested that China build direct pipelines to Karachi or Gwadar, which would be the shortest route for ensuring a stable and fast supply of oil to China.14 Both countries also exchanged letters for the utilization of 150 million dollars from the preferential buyers' credit for the Chashma-II Nuclear Power Plant when Prime Minister Aziz visited China in 2004. 15

Gwadar Port and Highways

In March 2002, construction of the Gwadar port project Phase I started after China agreed to provide 198 million dollars of the 248 million dollars required for that phase. The port is China's biggest foreign aid project to date.16 With an all-purpose dock with three 20,000-ton berths, it became functional on 20 March 2007. Nearly 40 per cent of the world's oil supplies flow through the Straits of Hormuz. The port is strategically located just 250 miles from the Straits of Hormuz to serve as a key shipping point in the region. Providing help to Pakistan for the augmentation of its importance in the region, and allowing China to diversify and secure its crude oil import routes with simultaneous access to the Persian Gulf, the port has its great strategic value for both the states at the regional level. The support infrastructure of the port was also a part of Chinese investment in Pakistan.

Having invested 400 million dollars in the project, China also financed the Makran Coastal Highway from Gwadar to a central Balochistan town, connecting Karachi and Quetta. The project will enable Beijing to

12 Ministry of Commerce, Government of Pakistan, www.commerce.gov.pk 13 Dawn , 25 March 2003. 14 Tarique Niazi, 'Gwadar: China's naval outpost on the Indian Ocean/

www.asianresearch.org 15 Dawn , 16 December 2004. 16 People's Daily (Online), http://english.people.com



gain considerable influence in the region, giving it a strategic entrance to the Arabian Sea and the Indian Ocean. The port will allow China to closely monitor US naval activity in the Persian Gulf, and US-India maritime cooperation will also become easier to monitor for China. In addition, Pakistan will get help from the port and the other supporting infrastructure to integrate with the Chinese economy by outsourcing low technology, basic production and manufacturing jobs. The port, through overland links that stretch across the Karakoram Highway, will give a boost to Chinese imports and exports in the region.

The benefits are profound for Pakistan as well. India's ability to blockade Pakistan will be inhibited in the Indian Ocean and the port will enable China to supply Pakistan by land and sea during wartime. Pakistan is essentially interested in the project to gain strategic leverage in order to minimize its vulnerability against the dominant Indian Navy. The construction of the port and the highway will give a boost to the domestic economic development of Pakistan by making it a regional hub for commercial traffic, which can influence the geostrategic environment of the region. Pakistan will earn significant profits in transit fees, as the port will enable the transfer of Central Asia's vast energy resources to world markets. It will also help Pakistan in setting things in Balochistan in order by attracting considerable investment into Balochistan and, subsequently, turning it into a hub of economic activity. Furthermore, discussions are underway to designate Gwadar port as a free trade zone.

With special incentives extended to Chinese companies, the Pakistani business community advocates the eventual designation of Gwadar port as an export processing zone. The existing misgivings between Kabul and Islamabad can be removed with the inception of international trade through Gwadar, as it will create new stakeholders in Afghanistan, avoiding conflict with its eastern neighbour by becoming beneficiaries of the transit trade to Central Asia. This, in turn, can be expected to act as a catalyst for normalizing the situation in war-torn Afghanistan and as an incentive for harmonizing Pakistan's relations with its neighbour. Gwadar, thus, presents an opportunity to Pakistan for promoting good relations in the region, especially to its immediate north-west. However, the success of the port and effectiveness of the agreements signed between Pakistan and China will depend essentially on internal developments in Pakistan.17

17 IPCS Special Report, op. cit.



Social and cultural cooperation

Pakistan and China have maintained strong ties on the social, cultural and educational levels as well. Various delegations from different walks of life continue to make exchange visits that have generated a strong sense of togetherness between the people of the two states. China has always supported Pakistan in its educational infrastructure and provided many Pakistani students with scholarships. Various agreements have been concluded between the education ministries of the two countries. Urdu has been taught for several years at Chinese universities, and Pakistan Study Centres have been established at Peking University and Sichuan University, while the first Confucius Institute was established at the National University of Modern Languages, Islamabad, in April 2007. 18 Social and cultural exchange visits have taken place on a wider level and various performances were held along with the telecast of various documentary films on television channels. Artists and writers have also created an environment of understanding through their interaction and have produced a strong bond among the people of Pakistan and China.

Post-9/11 political and diplomatic relations

With the changing regional and international scenario after 9/11, Pakistan-China relations took a new dimension of understanding and cooperation. The frequency of the bilateral exchange visits increased and high-level visits have been undertaken every year since 2003. Soon after 9/11, President Musharraf visited China from 20-24 December 2001. Both countries pledged to work together with complete unanimity for maintaining regional peace and stability and China expressed its readiness to join the Pakistan government in its new ventures.19 Various important agreements and MoUs were signed during Prime Minister Jamali's official visit to China from 24-26 March 2003.

Pakistan and China signed seven agreements in trade, communications and energy sectors and drew up a framework for greater economic cooperation during the visit of Prime Minister Shaukat Aziz to Beijing from 14-18 December 2004. From 5-7 April 2005, Chinese Prime Minister Wen Jiabao visited Pakistan. During this visit, the Pakistan- China Treaty of Friendship and Cooperation was concluded. The treaty states that 'neither party will join any alliance or bloc which infringes upon the sovereignty, security and territorial integrity of either nation/ while simultaneously positing that both parties 'would not conclude

18 Xinhua News, 6 May 2007, http://news.xinhuanet.com 19 Dawn y 21 December 2001.



treaties of this nature with any third party*.20 This treaty and other agreements that were signed marked a new stage and institutionalized the of 54-year relationship between Pakistan and China.21

In 2006, four days after the killing of three Chinese engineers in the Hub area of Balochistan, President Musharraf made a scheduled visit to China from 19-23 February. The visit, soon before the arrival of President George Walker Bush in Islamabad, indicated that Pakistan gives greater priority to its strategic partnership with China and no unfortunate incident can deter the long-time relationship between the two countries. Pakistan and China vowed to reinforce and deepen their strategic partnership through increased cooperation in the political, diplomatic and economic fields and the Chinese President supported the peace dialogue between Pakistan and India for a negotiated settlement of the Kashmir dispute. The two sides covered the entire spectrum of their relations and regional and international issues of mutual concern.22 During the visit, an agreement was signed between the two states to 'further deepen cooperation in peaceful application of nuclear power'.23

The second high profile visit between the two countries in the year 2006 took place when the Chinese President Hu Jintao paid an official visit to Pakistan from 23-26 November 2006. During this visit, President Musharraf and President Jintao pledged to build on the robust and time- tested Pakistan-China friendship and to expand their 'strategic partnership'. Eighteen agreements and MoUs were signed during the visit, the most crucial being the Tree Trade Agreement'.24

The recent visit by Prime Minister Aziz from 16-21 April 2007 to China witnessed 27 agreements and MoUs to 're-energize' bilateral cooperation in all fields, including defence, space technology and trade and economics. During his visit, Prime Minister Aziz welcomed the re- emergence of a multipolar world system with the strengthening of Chinese economic and military power, regarding the same as essential for global peace and security.25

20 IPCS Special Report, op. cit. 21 The News (Karachi), 6 April 2005. 22 Dawn , 21 February 2006. 23 Tarique Niazi, Thunder in Sino-Pakistani relations', op. cit. 24 Dawn , 25 November 2006. 25 Ibid., 18 April 2007



SAARC and the SCO

Pakistan played a key role in the US-led war against terrorism as a front line state, but this did not affect Pakistan-China understanding on different regional and international issues. Both countries helped each other in expanding their respective spheres of influence, particularly in the regional context. China supported Pakistan in securing observer status in the Shanghai Cooperation Organization (SCO) on 5 July 2005, and Pakistan staunchly supported China's observer status in the South Asian Association for Regional Cooperation (SAARC) on 14 November 2005. This was, ultimately, an effort to create a regional balance of power and to counter the increasing influence of India, which is the most influential state among the SAARC members.

It is interesting to analyze as to why China opted to be included in SAARC when its effectiveness is highly questionable in the region. It seems to be a precautionary measure to preclude India from becoming a regional hegemon in case of the possible emergence of SAARC as a vital regional organization in future. Besides, China also wants Pakistan to remain in a position in South Asia where it can safeguard Chinese interests. Both countries share commonality of interests in this context which leads their cooperation towards new heights in the regional set-up as Pakistan too, strongly seeks Chinese support in containing Indian influence.

Pakistan's inclusion in the SCO can work as a catalyst to generate a balance of power in the region and provide Pakistan with access to the Central Asian region to counter possible Indian influence. As rightly pointed out by Prime Minister Aziz: 'SCO today has the potential and the resolve to contribute in a significant manner to harmonious and sustained development of a large part of Asia, and Pakistan has a vital stake in security, stability and well-being of the region as it was among the first countries to seek association with SCO'.26 Through SCO, Pakistan has broader prospects for extending its influence to Central Asia. It would also help Pakistan to build its own capacity in the economic and political spheres at the inter-regional level.

Conclusion

Spanning over more than 55 years, the Pakistan-China relationship has proved to be a vibrant strategic partnership in every possible field of cooperation from diplomatic relations to economic ties and, more

26 Dawn, 6 July 2005.



importantly, consolidating trust and cooperation in the military and security fields.

Close diplomatic contacts and frequent high-level visits highlight the strength of their relationship and the standards on which Pakistan and China maintain their contact and cooperation. The economic cooperation between the two countries, especially after the signing of the landmark Free Trade Agreement, shows the willingness of both the states to enhance their cooperation in boosting each other's economy. The most important and vital area of Pakistan-China cooperation is defence and nuclear assistance. Although Pakistan has not provided China with any notable defence or nuclear assistance, it plays a very important role in the fulfillment of Chinese interest in attaining a dominant position in the region. Every aspect of their relationship reflects the strategies upon which both the countries have built their relationship. From the Karakoram Highway to Gwadar port and from high-level diplomatic contacts to people-to-people exchanges, the level of engagement reflects the close bond in which Pakistan and China are tied.

There is a need for Pakistan and China to enhance their cooperation at the United Nations forum and other international and regional organizations. Progress has been achieved at the regional level in the for of the inclusion of China in SAARC and Pakistan in SCO, but Pakistan and China must look ahead to enhance their cooperation on regional and global fronts in order to achieve the balance of power serving their interests. On the regional level, the increasing cooperation between China and India is emerging as a major concern for Pakistan. But at this juncture, it seems that by strengthening more its ties with Pakistan vis- -vis India, China is enabling Pakistan to use Chinese influence upon India positively in order to resolve the outstanding issues with India.

The chances of closer cooperation between Pakistan and China in future are increasing with the passage of time with the changing regional and global economic, strategic and security paradigms. The emergence of India as a regional power with tangible US support is alarming for China and it has sought counter measures in projects like Gwadar and access to the Persian Gulf and Indian Ocean through Pakistan. On the other hand, Pakistan has a greater interest in having an indispensable support of China being a regional power in political, economic and energy sectors and more importantly to protect its security in the region. This interdependency, generated by commonality of interests has made their relationship and cooperation more dynamic and in order to achieve their strategic goals in the region. Enhancement of its economy and materialization of its bid to become the sole dominant regional power has



compelled China to have closer cooperation with Pakistan. On the other hand, Pakistan has always remained in great need for having cordial ties with China having deteriorated regional security and domestic economic conditions in general and Indian threat in particular. Thus, this strategic partnership that brings the two countries closer with the fulfillment of common interest is likely to grow further in future serving the national interests of both Pakistan and China.


Article Contentsp. [109]p. 110p. 111p. 112p. 113p. 114p. 115p. 116p. 117p. 118p. 119p. 120p. 121p. 122p. 123p. 124

Issue Table of ContentsPakistan Horizon, Vol. 60, No. 2 (April 2007) pp. 1-225Front MatterFour Years and Thirteen Days: Iraq Today and Tomorrow [pp. 1-7]Sixty Years of Pakistan's Foreign Policy [pp. 9-24]Analyzing the Pakistan-India Peace Process [pp. 25-37]Thoughts on the Symbiotic Relationship between Pakistan and the Central Asian States [pp. 39-45]Pakistan-India Peace Process 1990-2007: An Appraisal [pp. 47-64]Pakistan-India Relations and Terrorism [pp. 65-84]Pakistan and the War against Terrorism [pp. 85-107]55 Years of Pakistan-China Relationship [pp. 109-124]Pakistan-Russia Relations: Economic and Political Dimensions [pp. 125-139]Understanding Pakistan's Pro-Taliban Afghan Policy [pp. 141-157]Pakistan-Afghanistan Relations and the Indian Factor [pp. 159-174]Pakistan and the World (Chronology: January - March 2007) [pp. 175-201]Documents [pp. 203, 205-224]PIIA Chronicle: Major Discussions and Lectures [pp. 225-225]Back Matter

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