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Pakistan-China Relations since 1990


Table of Contents
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Hypothesis...................................................................................... Error! Bookmark not defined.
Rationale Methodology .................................................................. Error! Bookmark not defined.
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Literature Review........................................................................... Error! Bookmark not defined.
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This paper presents the relations of Pakistan and China since 1990. Factors contributing to
positive and negative growth of association between the two countries will be discussed mainly
in the field of military, political, trade, economics and developmental projects. Moreover,
Pakistans view of China as an emerging superpower and its implications will also be taken into

Pakistan-China relations began in 1950 and have been deepening on several fronts. Relations
between Pakistan and China are very friendly as both the countries have placed considerable
importance on the maintenance of an extremely supportive association since the Sino-Indian war
in 1960. This relationship has been described by Hu Jintao as "higher than the mountains and
deeper than oceans". Regular visits and a variety of agreements as well as developments have
been common between the two countries. China has long provided Pakistan with major military,
technical, and economic assistance, including the transfer of sensitive nuclear technology and
However, there have also been a number of issues that have posed challenge to this bond such as
infrastructure deficit particularly in the energy sector, security constraints in Pakistan which have
caused Chinese private sector investment to decrease, the five unfortunate incidents where
Chinese workers lost their lives etc. While none of these issues is going to seriously affect the
relationship they already have created notable stress in an otherwise relatively trouble free

Statement of Problem
The issues of infrastructure deficit particularly in the energy sector, security constraints in
Pakistan which have caused Chinese private sector investment to decrease, the five unfortunate
incidents where Chinese workers lost their lives etc have lead to the formation of many chaotic
scenarios. China being a strong economy in Asia poses competition to United States
economically whereas US desires to capture this area and prevent the creation of multipolar
world. The problem we are focusing to solve in this research paper is how the relations between
Pakistan and China have changed since 1990.

Research Questions
This manuscript will address five research questions that will enable us to understand Pakistan-
China relations.
Question #1: How did Pakistan and Chinas good relationship start? How can they relate back to
the history and conditions at that time?
Question #2: Development projects of China in Pakistan since 1990.
Question #3: Pakistan and China Trade and Economic relations.
Question #4: Pakistan and China Military and Political relations.
Question #5: How do Pakistanis view China as an emerging superpower and what implications
do they see for Pakistan?

Based on the research conducted on Pakistan and Chinas relations after 1990, we have derived
one testable hypothesis. Both the countries deal with each other on economic, political and
military grounds. However, the events that took place in the last two decades have affected this
bond in a number of ways, becoming a growing concern for the world, especially the US that
seeks out any opportunity to gain control in the form of a hegemon and the sole power of the
world. Therefore, the clear-cut assumptions that can be made are as follows:
Ho: Economic, political and military factors are contributing positively on Pakistan and Chinas
H1: Economic, political and military factors are not contributing positively on Pakistan and
Chinas relations.

Rationale Methodology
The logic and underlying principle behind writing this research paper is to explain the nature of
Pakistans relationship with China. The overall task of this project is to find out the echelon of
compatibility between the two countries since 1990.
Research Methodology
Research Methodology defines what the activity of the research is, how progress is made and
what constitutes success. In this research paper it comprises of both qualitative and quantitative
data taken through secondary research. Secondary research occurs when a project requires a
summary or collection of existing data. For this manuscript, various articles, newspapers,
magazines and research papers have been used to answer the research questions listed above.
Literature Review
This research examines particularly the progression of Pakistan-China relations since 1990. In
this study we look at different dealings that have structured and, strengthened this relationship
and gave it a new direction in context of international relations and its theories. This review
characteristically takes the study of relations between the two states in the grounds of
development, trade and economic, military and political and the views of Pakistanis as to the
idea of China emerging as a superpower and its effects on Pakistan.
Since diplomatic ties established in 1951, China and Pakistan have nurtured very cordial and
mutually favorable relations. Pakistan was one of the first countries to identify the People's
Republic of China in 1950. China has long provided Pakistan with major military, technical, and
economic assistance, which includes the transfer of sensitive nuclear technology, equipment and
designs. Rich imagery is important in describing the Pakistan relations. In 2011 Chinese Premier
Wen Jiabao addressed the Pakistan Parliament saying that friendship between the two countries
is a lush tree with deep roots and thick foliage, full of vigor and vitality. Experts predict that
Pakistan-China relations will improve further if US-India relations grow. Daniel Markey, an
analyst on South Asia at the Council on Foreign Relations in Washington said China sees
Pakistan as a useful partner in a difficult and violent region, as a potential buffer against more
extreme elements in the Muslim world, and looking to a more distant future a useful
geographic outlet to the Arabian Sea for Chinas western provinces. According to a Pew
Research Center survey 87 percent of Pakistanis say they have a favorable view of China,
compared with 12 percent who say the same about the United States.
Development projects have been supported by China and they are helping Pakistan expand the
Chashma nuclear power plant in the Punjab. On September 24, 2010, John Pomfret wrote in the
Washington Post that China's main nuclear power corporation wants to build a one-gigawatt
nuclear power plant in Pakistan. Even though it appears to be a violation of international
guidelines, forbidding nuclear exports to countries that have not signed onto the nuclear Non-
Proliferation Treaty. On Saturday, July 16, 2011, Malik M. Ashraf wrote in the Pakistan
Observer that a project of immense importance that nudged the process of industrial
development in Pakistan is the Heavy Mechanical Complex at Taxila and the construction of
KKH Highway, termed as the eighth wonder of the world that has generated tremendous
economic activity in Gilgit-Baltistan. In 2012 Pakistan's Ambassador to China Masood Khan
said, Pakistan and China would execute 36 projects worth $14 billion during next five years
under bilateral Five Year Development Programme for Trade and Economic Cooperation.
Realizing the need to expand trade and economic relations, the two countries have taken
initiatives to promote cooperation through investment and joint projects. Dr. Rashid Ahmed
Khan wrote in Uqaab that between 2000 and 2010 the volume of bilateral trade grew sevenfold.
The two sides plan to increase trade to $10 billion within five years.
China is Pakistans largest defense supplier. In September 2012, a correspondent of The Tribune
wrote that Islamabad and Beijing signed a document for bilateral military cooperation which
included high level exchanges, training programmes and intelligence sharing. In March 2013
According to latest reports, Pakistan is seeking to buy 36 J-10 aircraft, which would make
Pakistan the first recipient of one of the most advanced weapon systems in Chinas arsenal. The
addition of 36 J-10 aircraft would enable Pakistan Air Force (PAF) to raise two fighter squadrons
and further sharpen its combativeness. The sale of the J-10 aircraft signals the depth of Pakistan-
China strategic partnership. [Source: Uqaab, March 13, 2013]. Javid Husain a retired ambassador
and professor of the Lahore Council for World Affairs said that we should be sensitive to
Chinas concerns about the activities of Taliban and other religious extremists. Religious
moderation is not only good for our internal political health but also for our relations with China.
We also discuss the concept of China emerging as a superpower. The mightiest states, says
Professor John Mearsheimer of the Chicago University, attempt to establish hegemony in their
own region while making sure no rival great power dominates another region. Their ultimate aim
is to be the hegemon, the only great power in the system. Regional hegemonism in other words,
does not want peer competitors. China will, therefore, want to make sure that it is so powerful
that no state in Asia has the ability to threaten it. Mr. Imtiaz Rafi said that Pakistans geo-
political, economic industrial and technological future is linked with the future of China so if
China prospers so would Pakistan. According to a Pew Research in 2011 about seven-in-ten
Pakistanis (72%) see Chinas growth as a good thing for their country.
Lastly, Dr. Rashid Ahmad Khan a professor and chairman of the Department of International
Relations/Political Science University of Sargodha-Pakistan said, there is vast potential for
deepening the Pakistan-China strategic partnership. The current trends in relations show a greater
focus on promoting cultural exchanges, people-to-people contacts, and expanding trade and
investment ties and economic cooperation. This will, in turn, further strengthen the security and
defense links between the two countries, which are a firm guarantee for peace and security in the
Research Questions
Question #1: How did Pakistan and Chinas good relationship start? How can they relate back to
the history and conditions at that time?
Pakistan-China diplomatic relations were established in 1950 when Pakistan, among the first
countries to break relations with the Republic of China or Taiwan, recognized the PRC which
provided economic, military and technical assistance to Pakistan. Since then both countries have
developed an all season-friendship based on brotherhood, uniformity and coordination where
each considers the other a close strategic ally.
Escalating border tensions with India resulted in Sino-Indian war (1962). However, China and
Pakistan are aligned with each other in a joint effort to counter perceived Indian encroachment.
One year after China's border war with India, Pakistan created the Trans-Karakoram Tract to
China to end border disputes and to strengthen the bond.
However, in the early times of Sino-Pakistan diplomatic relations, Pakistan was inactive as it was
an ally of the west. However, the time between1957 and 1969 turned out to be an important
phase in the history of Sino-Pakistan relations as changes took place in bi lateral relations. Since
1970, this led to the steady developments and strengthening of cooperation between both nations.
Pakistan's military initially depended almost entirely on American 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 (1990) suspended all American military assistance and economic aid as
Pakistan was attempting to gain nuclear technology.
In light of the support that Pakistan had given America during the War in Afghanistan, Pakistan
saw this as a betrayal that sold out Pakistani interests in favor 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. Hence Soviet invasion of Afghanistan in 1979 opened
a new chapter of collaboration between Pakistan and China. The shared geopolitical alliance
since then has branched out into military and economic cooperation. Both of them totally agreed
that the presence of Soviet military in Afghanistan could be a major threat. Hence, the decisions
made by Pakistan preferred Chinese-led policies, rather than American policies..
Since the event of 9/11, Pakistan has increased the acceptability of Chinese influence and
support by agreeing to a number of military projects along with extensive economic support and
investment from the Chinese. This is Pakistans strategy to prevent America's influence in the
region from becoming too strong. In return, the Chinese hope to strengthen Pakistan as a
counterbalance to American and Indian influence. Recently, hundred member youth delegation
of Pakistan also visited China for a week, witnessing the close bonds that exist between the two
Furthermore, both countries have also extended their invitations focusing on the youth exchange
program. As a part of 60
Anniversary of Pakistan-China diplomatic relations, the association
organized Khyber chapter and the whole year was been declared as A YEAR OF
FRIENDSHIP Hence in the past 60 years, both countries have engaged in multinational co-
operation in various fields, ranging from politics, trade and tourism to education.
Question #2: Development projects of China in Pakistan since 1990.
China has been a strong vocal and enthusiastic supporter of Pakistan. This relationship has
effectively contributed to developments in Pakistan be it in the form of a nuclear power plant, the
Al Khalid tank, building of the Gwadar port, construction of a housing project on Multan Road
in Lahore,JF-17 Fighter Program, or the Karakoram railway etc.
Starting off with Chinas contribution to the nuclear sector in Pakistan, the second nuclear power
plant known as CHASNUPP-I was made in Punjab under International Atomic Energy Agency
(IAEA) safeguards. The commercial nuclear power plant began its operations in May 2000. In
2005, China with the promise of building more nuclear plants in Pakistan, expanded its contract,
and therefore, construction of CHASNUPP-II started in December. In the same year, both
Pakistans and Chinas government adopted an Energy Security Plan, calling for a huge increase
in generating capacity to more than 160,000 MW by 2030. In June 2008, the Pakistan
Government announced plans to build commercial nuclear power plants III and IV at Chashma,
Punjab with 80 billion of the cost being covered by China.
Pakistan's development of the MBT-2000 Al Khalid began in 1988, and in January 1990 an
agreement was reached with China to jointly design, develop and manufacture the system. All of
it except the engine of this tank is made in Pakistan. The design is improved from the original
T902M and work had been going on at China's NORINCO for some years. Initial samples were
produced in China and fielded for trials in August 1991. Pakistan's manufacturing plant at Taxila
was completed in 1992. Since then development efforts focused on making designs suitable for
Pakistan's terrain and high temperatures.
Gwadar is a planned free trade port city on the southwestern warm water Arabian Sea coastline
in the Balochistan province. Gwadar Port is owned by the government-owned Gwadar Port

and operated by state-run Chinese firm, China Overseas Port Holding Company
(COPHC). Gwadar Ports construction contract was awarded to a Chinese firm and it began on
22 March 2002 and Phase I of the Port was completed in December 2006 and inaugurated by
the President General Parvez Musharraf on 20 March 2007. Presently, Gwadar port operations
are officially handed over to China and according to the contract signed a full-fledged
commercial port will be constructed with initial investment of $750 million. The development
of this port is said to be strategically important for China as it will reduce the distance that
needs to covered to trade in oil given that it imports sixty percent of oil from the Gulf by ships
traveling over large distances facing pirates, bad weather, political rivals and other risks till it
reaches its only commercial port, Shanghai. The commitment by Government of Pakistan to
provide a Naval Base to China in Gwadar will not only help secure Gwadar but also take the
Pakistan China Friendship to new heights. Chinese Goods will find an easier, shorter and secure
route to Middle East increasing profitability and trade. China will greatly benefit from the
industrial zone by setting up industries close to the markets.
For the construction of a housing project on Multan Road in Lahore, Pakistan and China signed
a $110 million contract in December 2004. The contract was signed following talks between
then Prime Minister of Pakistan Shaukat Aziz and President of the China State Construction
Engineering Corp Sun Wen Jie. In April 2005, the Prime Ministers of Pakistan and China
officially laid the foundation stone of Sukh Chayn Gardens, Pakistan's first and only housing
estate to be designed and developed in collaboration with China.
The JF-17 fighter program is a joint Chinese-Pakistani project that aimed to reduce Pakistans
dependence on western firms for advanced fighters, by fielding a low-cost multi-role
lightweight fighter that would host modern electronics, and represent a step up from its Chinese
MiG-19/21 derivatives and French Mirage Fighters.
The Karakoram Highway (KKH) is the highest paved international road in the world that
connects China and Pakistan across the Karakoram mountain range. The KKH, also known as
the Friendship Highway in China, was built by the governments of Pakistan and China and is
termed as the eighth wonder of the world and many Chinese and Pakistani individuals lost their
lives during its construction. Pakistan and China are to build a railway through the Karakoram
Highway, in order to link China's rail network to Gwadar port.
In order to manufacture 175 new high-speed passenger coaches, Pakistan Railways signed a
$91.89 million contract with China National Machinery Import and Export Corp in 2001.The
project was funded by Exim Bank China on a supplier credit basis. According to the agreement
signed with China in 2003, Pakistan Railways purchased 69 locomotives, of which 15 were
delivered as completely built units and are in use by Pakistan Railways. Under another contract
signed in 2004 with China National Machinery and Equipment Group, the Chinese company was
to undertake the construction of Corridor 1 of a light-rail mass-transit system for Karachi that
intended to serve 4 million commuters. Pakistan signed a series of agreements with China during
the past three years to enhance the capability of its railway system. Under an agreement signed
between Pakistan and China Railway, a Chinese company will provide 1,300 freight cars to
Pakistan Railways, of which 420 will be manufactured in China and the remaining 880 will be
produced at the Moghalpura railway workshops in Lahore.Under another project, 450 passenger
coaches will be rehabilitated at an estimated cost of Rs2.14 billion. The project also includes the
conversion of 40 coaches into air-conditioned cars and the conversion of 10 power vans. As part
of a $100 million agreement signed between Pakistan and China in November 2001, China is to
export 69 modern locomotive engines to Pakistan to modernize Pakistan's railway fleet.
Moreover, the Chinese are also entrusted with the responsibility to commission Kohala Power
Project at a cost of US$ 2.155 billion with a capacity to generate 1050 MW of electricity.
Chinas Three Gorges Project Corporation is constructing Diamir-Bhasha Dam on the Indus river
with a total investment of US$ 12.6 billion. In addition to these undertakings the Chinese firms
are also working on six other mega power projects in Gilgit-Baltistan that include : US$7.8
billion Dasu Hydropower Project, US$ 70 million Phandar Project, US$ 40.01 million Bashu
Hydropower Project, US$ 44.608 million Harpo Hydropower Project and US$ 6 billion Yulbo
Hydropower Project.
With the help of these developmental programs by China, conditions in Pakistan can improve to
a great extent and confidence of the international community in Pakistan as a safe place to invest
may be restored.
Question #3: Pakistan and China Trade and Economic relations.
In 1979, trade ties between China and Pakistan were established after the completion of the
Karakoram Highway. However, very little trade takes place through this route. China is the
worlds second largest economy and is the largest exporter and the second largest importer of
goods. There is a great demand for the Chinese products in Pakistan. Machinery, chemicals,
garments and other textile products are the major Chinese products which are imported to
Pakistan. Since the end of 1990s, both the countries have felt the need to take the economic and
trade relations to a higher level in comparison to political and defense relations.
In the recent years, China has taken several steps to improve trade and investment relations with
Pakistan. A bilateral free trade agreement (FTA) was signed in 2006. A Preferential Trade
Agreement was also signed in 2003.A memorandum of understanding (MoU) is a document
describing a bilateral agreement between the two parties. This memorandum of understanding
was signed between the two countries. A bilateral investment treaty (BIT) and many agreements
were also signed to increase trade and investment. Due to these agreements China is able to use
Pakistani ports for trade and cheap Pakistani raw materials and in return Pakistan is able to gain
access to the Chinese markets through preferential treatment under the FTA. In FTA, tariff
concessions were given by both countries to each countrys exports. Pakistan received market
access at zero duty on industrial alcohol, cotton fabrics, bed linen and other home textiles and
other goods. China also reduced its tariff by 50% on knitwear and woven garments. Exports from
Pakistan to China increased by 33% per annum from 2007-2011. China exported more than US
$5 billion worth of commodities to Pakistan in 2007, while the figure was only US$ 1.8 billion
for the year 2003. China is the largest import sources for Pakistan and its share has increased
from 14 % to 17% during 200307. It ranked third amongst the top import sources in 2003.
(See Appendix A1, TA). China has become one of the top five import sources of Pakistan.
Pakistan exports to China have increased by 17.7% per annum during the last four years though
its share in Chinese market has declined from 0.14% to 0.12%. The share in Pakistani export has
increased from4.82% to 6.19 %.( See Appendix A2, TB). The main items that are exported to
China are cotton fabrics, cotton yarn, bed wear, surgical instruments, tent, canvas, marble, fish
and leather. The variety of goods exported to China is very narrow. Cotton yarn and other textile
products constitute of about 80% of exports. In 2010-2011 the major imports of China to
Pakistan were of carding machines and embroidery machines. The trade balance between the two
countries has shifted in favor of China. (See Appendix B, GA & GB). Pakistan and China will
enter Phase II of FTA in 2013. The most important industries in which China holds dominant
positions in the Pakistan market pertain to machinery mechanical appliances, textiles and textile
The successes of Chinese exports in Pakistan are due to many factors. Firstly, Pakistani
Government is providing many incentives to support Chinese business activities and trade. In
Pakistan, Chinese traders do not face visa problems. Secondly, in the recent years Chinas trade
with Pakistan, particularly exports, has not faced any barriers in Pakistan, particularly after the
implementation of the China-Pakistan FTA. Thirdly, China is doing well in the textile industry as
this industry enjoys the economies of scale and price competitive. It has proven to be more
successful in Pakistan because of its low price and lack of competitors. Fourthly, it is easier for
China to do trade in Pakistan due to the cooperative attitude of the people of Pakistan. Lastly, the
trade and transaction costs are lower in China than any other country.
China and Pakistan have recently signed an agreement on trade in services. This agreement has a
greater impact than other trade and investment agreements. After the implementation of this
agreement, volume of trade is going to increase in financial and technical services.
Overall, Chinese trade has been more compatible with the demand of Pakistan and the difference
between the trade complementarity index of Chinese exports has widened since 2006. Trade
between Pakistan and China has been substantially higher and it appears that it will proceed at a
faster pace.
China has proved to be a very important economic partner to Pakistan. Pakistans economy is
small as compared to Chinas economy. There is a huge difference between the levels of
industrial development between the two countries. There has been steady growth in mutual
investments over the past years. In the last few years, investment of more than 1.3 billion USD
was made by China in Pakistan. The Chinese have invested in Pakistan in telecommunications,
energy, infrastructure, heavy engineering, IT, mining and defense related industries.
A major reason for Chinese interest in Pakistan is the trade and energy corridor from the Gwadar
port of Pakistan to the western regions of China. Similarly, the report of Five Year Development
Programme on Trade and Economic Cooperation (2006) between Pakistan and China includes a
list of priority projects that have been jointly undertaken. Projects involving investments are
mostly in the communication and telecommunication, infrastructural development and petroleum
and natural resources field. China had also steadily been assisting Pakistan with aid and
assistance in response to the natural disasters that have destroyed property in the country, such as
floods and earthquakes.
Many factors are involved in hindering growth of Pakistans economic relationship with China
which include infrastructure deficit, particularly in the energy sector, poor innovation and
technological infrastructure, low labor productivity, low levels of manufacturing value addition,
little Foreign Direct Investment (FDI) in manufacturing and exportable sectors, increasing costs
of exports as compared to imports, lack of product diversification in exports, absence of
economies of scale in the production processes, especially in the Small and Medium Enterprise
(SME) sector, which accounts for a vast majority of the enterprises in the country.
The security environment in Pakistan has caused the Chinese private sector investment to
decrease. The five unfortunate incidents in which Chinese workers lost their lives have
negatively affected potential Chinese investors and ensuring the security of Chinese workers is a
serious challenge if more effective trade policies are to be made.
The economic relationship between Pakistan and China is composed primarily of Chinese
investment in Pakistani interests. China's increasing economic power has enabled a wide variety
of projects to be sponsored in Pakistan through the Chinese credit. Pakistans investment in
China is also encouraged and cross-border trade continues.
The economic relations between the two countries are bilateral trade, mutual investments, joint
ventures and aids/loans provided to each other. China is fast integrating into the global economic
system and its trade, investment and economic co-operation is now increasingly being directed
by market forces. Engaging the Chinese private sector on a long-term basis is important for
sustainable economic and trade relations. Due to this Pakistan-Chinas economic relation appears
quite underdeveloped.

Question #4: Pakistan and China Military and Political relations.
In order to improve diplomatic relations with China, Pakistan ceded the Trans-Karakoram Tract
to end border disputes. Since then, both nations have witnessed smooth development of friendly
and neighborly relations that have benefited them on diplomatic and military grounds. Along
with diplomatic support, Pakistan served as a bridge to China to open up with the West.
However, since 1990s great changes have taken place in the international situation. Instead of
being affected by the changing situation, the time tested friendship and cooperation between
Pakistan and China has further developed.
In May 1990, Chairman of the Standing Committee of the National People's Congress, Wan Li
visited Pakistan and then in the same year Pakistani President Ishaq Khan visited China and
attended the 11th Asian Games as the chief guest. This paved way to frequent visits of political
figures between Pakistan and China. In 1995 Chinese government invited Prime Minister
B.Bhutto as a special guest to attend 4th World Women Conference. In December 1996,
President Jiang Zemin was invited by Pakistan who paid a state visit. However, the Sino-
Pakistan relations and the leaders of the two have decided to establish an all-round cooperative
partnership into the 21st century. President Jiang Zemin made an important speech during his
visit to Pakistan which entitled Carrying Forward Friendly and neighborly relations from
generation to generation, and working together for a better tomorrow.
Pakistani political parties have a range of views regarding Pakistan-China relationship. Pakistan
People's Party believes that economic links should not only revolve around imports from China,
but should also ensure access for Pakistani products to China. Apart from this the party believes
that a new thaw in Sino-India relations cannot affect China's friendship with Pakistan. In fact
China can help India and Pakistan improve their relations by removing bilateral misgivings and
mistrust. The party is also of the opinion that Pakistan's decision to join hands with US in the war
on terror has not undermined Pakistan-China relations. The party also believes that the presence
of some Uyghur Chinese separatists in Pakistan's tribal areas has disconcerted the two countries'
ties to some extent. However, there is no major factor that can damage Pakistan's ties with China.
Pakistan Muslim League-Nawaz considers Pakistan and China 'all weather friend' and believes
that cooperation between the two countries is fruitful for both the regions. This party believes
that seeds of friendship should be sown between youths of both nations to further enhance the
relations and also urges increasing people-to-people contact in all walks of life. This party
believes that despite a fragile economy and weak political system, Pakistan is China's strategic
ally, with mutuality of interests. China's rise as a global power is in the best interest of Pakistan
and would lead to more effective political and diplomatic support for Pakistan.
The MQM believes that despite multiple problems, mainly political instability, a weak economy
and poor law and order, Pakistan has a lot to offer China including a warm-water deep-sea port at
Gwadar, and most importantly a trusted ally which has always supported China all on issues. The
party thinks that once Pakistan's economics conditions improve, Chinese could have tremendous
opportunities in Pakistan to invest in the fields of telecommunications, information technology,
mining, electronics and the automobile industry, as well as in the education and health sectors.
The MQM considers the killings of Chinese engineers and skilled workers in Balochistan a
failure on Pakistan's part to protect them. It believes that such incidents would not hurt state-to-
state relations but could jeopardize the ongoing development projects in Balochistan by various
Chinese companies. Hence, China's rise as a global power opens doors to various international
markets for Pakistani products and thus it is in interest of Pakistan to reformulate its foreign
policy with a 'look east' focus.
PTI, views Pakistan-China ties as one of the critical foundation stones of Islamabad's foreign
policy. Chinese companies have not only been investing in Pakistan but are also involved in
major construction work. Pakistan is also a gateway to the Muslim world for china and also
provides Beijing access to the Indian Ocean. However, it thinks that China cannot play a major
role in resolution of the Kashmir dispute because it has a border dispute with India.
Cementing ties with China has remained a key plank of Pakistan's foreign Policy regardless of
the political party in power or form of government. China's rise as global power is bound to be
beneficial for Pakistan. As it grows in stature, China would also be a new forceful voice on
international issues. China's clout would mean more diplomatic support for Pakistan on crucial
issues on almost all major international forums.
China enjoys long-standing strategic defense ties with Pakistan and has supplied arms for more
than 40 years. This relationship between two neighboring Asian countries is very crucial in the
world. The strong defense ties are mainly to counter regional Indian and American influence, and
were also to repel Soviet influence in the area. For the past few years this relationship has been
strengthened through various defense projects and agreements between Pakistan and China.
Moreover, the Chinese fully supported Pakistan in 1965 war against India but were of little help
in the 1971 war.
China is Pakistan's largest defense supplier. China has transferred equipment and technology and
has provided scientific expertise to Pakistan's nuclear weapons and ballistic missile programs
throughout 1990s, enhancing Pakistan's strength in the South Asian strategic balance. The most
important development in Pakistan-China military cooperation occurred in 1992 when China
supplied Pakistan with 34 ballistic missiles.
Recent sales of conventional weapons to Pakistan include JF-17 aircraft, JF17 production
facilities, and F-22P frigates with helicopters, K-8 jet trainers, T-85 tanks, F-7 aircraft, small
arms and ammunition. Furthermore, China and Pakistan are involved in several projects to
enhance military and weaponry systems, which include the development of the Chinese tailor
made for Pakistan, JF-17 fighter aircraft, K-8 Karakorum training aircraft for Pakistan Air Force
and Al-Khalid tanks, licensed by China. However, the Chinese have designed tailor made
advanced weapons for Pakistan, making it a strong military power in the Asian region. China
also built a turnkey ballistic-missile manufacturing facility near the city of Rawalpindi and
helped Pakistan develop the 750 km range, solid fueled Shaheen-1 ballistic missile. However ,
China has consistently supported Pakistan's military modernization effort.
In the past, China has played a major role in developing Pakistan's nuclear infrastructure,
especially when export controls in Western countries made it difficult for Pakistan to acquire
materials and uranium enriching equipment from elsewhere. However, many experts call China's
assistance of nuclear technology to Pakistan as the blue print for Pakistan's nuclear bomb. China
was also accused of having long standing ties with Abdul Qadeer Khan, known as the father of
the Pakistani nuclear program and head of an international black market nuclear network. China
also supported and helped Pakistan in building the Khushab reactor. Furthermore, China
National Nuclear Corporation gave subsidiary to Pakistan in order to expand its uranium
enrichment capabilities. Moreover, China has also aided in the completion of Chashma Nuclear
Power Complex which was built in mid 1990s. Hence, China has enabled Pakistan to become a
nuclear state.
In order to improve ties with India, China developed a more neutral position on the Kashmir
issue, rather than taking Pakistan's side. This brought about a turning point in China's position on
Kashmir, also known as Kargil crisis that took place in 1999, where China helped convince
Pakistan to withdraw forces from Indian side of Line of Control following its incursion into
Kargil region of Jammu and Kashmir. However, India was pleased with China's stance and this
overcame tension in their relations. Despite this China continues to maintain a robust defense
relationship with Pakistan
China is also helping Pakistan in developing a deep sea port at Gwadar. The port would allow
China to secure oil and gas supplies from Persian Gulf and project power in the Indian Ocean.
The complex will provide a port, warehouses, and industrial facilities for more than 20 countries.
Apart from this there is a concern that China may turn its investment in Gwadar Port into access
for its warships.
China has offered military aid in order to fight against terrorism in Pakistan. While Pakistan has
purchased military equipment from China in order to bolster their efforts against Islamic
militants. China is also seeking to set up military bases on Pakistani soil to deal with this
China gave Pakistan generous, timely and unconditional relief assistance after the massive floods
that took place. Their assistance was the highest compared to any other foreign country as they
not only gave Pakistan funds but their companies participated in the post-floods reconstruction,
especially in agriculture and infrastructure projects.
However, with rising instability in nuclear-armed Pakistan and the threat of Taliban forces
gaining influence, China must take responsibility for encouraging greater stability and coherence
among Pakistan's leadership. China's handling of current crisis in Pakistan is a true test of its
credentials as a responsible global player.
Question #5: How do Pakistanis view China as an emerging superpower and what implications
do they see for Pakistan?
Once China becomes strong enough to stand alone, it might discard us. A little later it might
even turn against us, if its perception of its interests requires it. (Henry Kissinger)
As Chinas economic strength and global economic path has increased so have Chinas ambition
to play a larger political and military role to defend its growing international interests. As China
emerges as a global power it is essential to recognize what role it will play and the security view
it has of both Asia and the world. China's most significant issue is internal political stability.
Many Chinese believe that the U.S represents the values of Western civilization which is in
conflict with Eastern civilization represented by China. So the Chinese view any influence by
U.S as a challenge to China's political stability. On the other hand, majorities in Pakistan foresee
China supersede the U.S. as the worlds dominant power. In most countries specially Pakistan,
the view that China will surpass the U.S. has increased considerably over the past two years.
When the reaction of China's economic rise is compared with the prospect of China equaling the
U.S. militarily the global opinion is consistently pessimistic. Many countries do not want China
to emerge as a superpower militarily, but besides the Chinese themselves, a few countries, which
includes Pakistan, see an upside to China matching the U.S. in terms of military power. In a
research conducted in Pakistan in May 2011 majority of people agreed that Chinas economic
growth will benefit Pakistan. The ascend of China will have a worldwide impact but its effect
would be felt mainly in Southeast Asia and it may lead to the creation of power blocs. A geo-
political analyst said that it would be prudent for Pakistan to increase collaboration with China
for long-term benefits. Although Pakistan is a small country but it has strengths such as
geographical strategic importance, rich natural resources and labor which it can use it to its
advantage and mount itself towards prosperity with aid of China. Pakistan could become a key
actor globally instead of regionally as despite of Irans claims, Pakistan is the only nuclear
Islamic power that is advantageously placed between China, India and a few other Asian states
and it is a doorway to the Central Asian oil-rich states. Therefore Pakistan is great importance
from Chinas perspective and if China becomes a superpower they are likely to maintain cordial
relations with Pakistan. Even historically leaders of both countries have supported each other's
decisions. Every Pakistani ruler has given the highest priority to Chinese friendship and the
Chinese leaders recognize this. Even with U.S. influencing us Pakistan did nothing to
compromise Chinese welfare in the Sino-Indian border war of 1962. Also when Bangladesh
separated from Pakistan China firmly declared that they won't recognize Bangladesh till Pakistan
did. China has helped Pakistan in the industrial sector too, substantial projects are being
completed in association with China. In general Pakistanis consider the growth of China to be of
their advantage as frustration is intense in Pakistan, where people are displeased with the way
things are going in their country and believe that China can bring them out of this looming
The 21st century is starting to be regarded as the Chinese century and no form of alliance can
likely be able to prevent the emergence of China as the new global superpower at the given
velocity of China's accomplishments. Many countries particularly the United States and Japan
will do anything possible to stop China, but as Napoleon Bonaparte said,'' When China awakes,
it will shake the world'', there isn't much anyone can to do to stop China. But in the wake of all
this we know that Pakistan and China have remained friends through thick and thin, and that
their relations exceeds from political convenience and short-term compromises and so our geo-
political, economic and technological future is connected with the future of China. If China
flourishes so would Pakistan.

Ho: Economic, political and military factors are contributing positively to Pakistan and Chinas
H1: Economic, political and military factors are not contributing positively to Pakistan and
Chinas relations.
The various developmental projects that have acted as a catalyst in booming the relations
between Pakistan and China along with the military, political and economic factors mentioned
above, the hypothesis that can be concluded is the one that states that these factors contribute
positively to the relations between Pakistan and China.

The friendly relationship between China and Pakistan has deepened even further in recent years.
It has often been regarded as all weather and time tested. For Pakistan, China has been a steady
source of military equipment. The trade between the two countries has increased over the last
decade but there is a place for improvement between the economic and trade sector. Pak-China
relation is not only brought up on the political level but people of both the countries share a deep
and special bond. China and Pakistan have been fully supportive of each other at all times. In
short it is fairly true that Pakistan-China friendship is a tried and tested one and it is rightly said
by Hu Jintao that the bond is higher than the mountains and deeper than oceans.
It is essential now that both countries maintain a brotherly relation. A few recommendations that
can be proposed are that in order to enhance the Pakistan-China economic partnership, Pakistan
has to think big and consider the need to build up competencies. As we do that, China our
brother and partner may step forward to help us develop these competencies by providing
technical expertise in the form of physical and human capital. For the relationship to sustain,
Pakistan needs to improve its internal security. Furthermore, providing man power for Chinese
ventures in Pakistan is also important. For this purpose, developing human capital at the grass
root level that is providing education to the masses is imperative for understanding the
importance of development.

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Appendix A
A1 Table A
A2 Table B
Appendix B

Appendix A
Table A: Chinese Exports to Pakistan (US$ Million)

Table B: Chinese Imports from Pakistan (US$ Million)


Appendix B
Graph A: Chinese Trade with Pakistan (US$ Million)

Graph B: Trade Penetration