Pakistan-China Foreign Policy China-Pakistan Relations • • • • China and Pakistan have had close and mutually beneficial ties since the beginning of diplomatic relations in 1951. The Islamic Republic of Pakistan recognized the People’s Republic of China (PRC) in the 1950s and became the first Muslim and third non-Communist state to recognize the PRC as an independent state. China has historically supplied Pakistan with considerable military, technical, and economic aid, including the transfer of sensitive nuclear technologies and equipment and continuously supported Pakistan with diplomatic, political and military assistance These relations continue to develop and evolve in response to emerging threats and geopolitical constraints, embracing emerging areas that are essential to the stability of the region and the growth and development of both countries. Recognition of China and the dawn of diplomatic ties (1949-1960) • The People’s Republic of China (PRC) was established in 1949 under the leadership of Mao Zedong, while the Islamic Republic of Pakistan became an independent state in 1947. • In the 1950s, Pakistan recognized the PRC as an independent state rather than Taiwan. • In May 1951, Beijing and Karachi formally established diplomatic ties. Trade ties between Pakistan and China were established before diplomatic ties were established. • Due to the devaluation of the currencies, the trade relations between Pakistan and India were severely damaged. Pakistan needed coal to run its industries and wanted to export cotton and jute, but due to currency problems, India refused to import cotton and jute. At this crucial time in 1949 and 1950, China offered coal in exchange for cotton, in what was called the "Coal for Cotton Barter Deal.“ • The Treaty of Friendship Between China and Pakistan, which was signed in 1956 by Chinese Premier Zhou Enlai and Pakistani Prime Minister Huseyn Shaheed Suhrawardy, marked a step up in bilateral relations. Crisis and Cooperation between Pakistan and China (1961-1970) • Due to the border issues between Pakistan and China, bilateral relations have faced some challenges and problems. The Sino-Indian War brought Pakistan and China closer to each other. Pakistan condemned India's actions after the Indo-China War. • Later, the issue was resolved by a border agreement in March 1963. In 1963, China also gave 50 million dollars in interest-free economic aid to Pakistan to strengthen Pakistan's economic ties and quickly became the largest purchaser of cotton produced in Pakistan. • In this border agreement, Pakistan gave 5180 square kilometres to China instead of 1942 square kilometres. • India and America both criticised this pact. The United States postponed the $3 million loan for the construction of Dacca Airport. Then China provided financial assistance to Pakistan. • In that year, China and Pakistan also signed an air transport agreement. According to this agreement, both PRC and Pakistan airlines can operate on each other's territory. Crisis and Cooperation between Pakistan and China (1961-1970) • In the war of 1965, China provided military, economic, and political support to Pakistan against India and supported Pakistan’s stance on Kashmir. The Soviet Union did not participate in this war, while the United States imposed sanctions on both states. China provided all types of assistance to Pakistan and this war becomes a traumatic event that shaped the friendly relations. • In 1966, China gave Pakistan $250 million worth of weapons, including T-9 tanks, anti-aircraft guns, and F-6 fighter jets. Pakistan then signed a trade pact after realising the significance of China. China has provided economic assistance of Rs 15 million to the Heavy Mechanical Complex (HMC) in Taxila. • In response, Pakistan supported China's one-China policy and China’s membership in the United Nations. At the end of the 1960s, Pakistan and China jointly started the Karakorum Highway Project. • The United States was also in favour of China, and it wanted to establish relations with the PRC. The US needed Pakistan's help in this regard, and thus US President Nixon asked Pakistan to build a channel to improve ties between the US and China. Recognitions of China in World politics and strategic cooperation (1971- 1990) • In the 1970s, Pakistan played an important role in building relations between the United States and China. • In this regard, Pakistan fully supported its best friend China and its ally, America, and America's national security advisor, Henry Kissinger, secretly visited China with the help of Pakistan. In October 1971, due to the open support of Pakistan, China was granted membership in the United Nations and permanent membership in the United Nations Security Council. • China assisted Pakistan by giving it weapons and ammunition during the Pak-Indian War that year. In the General Assembly and Security Council of the UN, China firmly supported Pakistan. • Pakistani Prime Minister Zulfiqar Ali Bhutto visited China and met with his counterpart in May 1972. China provided a MiG-19 fighter and 100 T-54 and T-59 tanks to Pakistan. China also approved $300 million in economic and military aid to Pakistan. China vetoed the membership of the newly independent Bangladesh at the United Nations in August 1972. • Later, Pakistan gained $600 million in economic and military aid, and China provided 500 T-59 tanks, 25 naval vessels, and 300 F-6 combat aircraft. Pakistan also constructed a tank repair factory at Taxila and an air force repair factory near Kamra with the assistance of China. • China fully supported Pakistan's nuclear program and provided full assistance for Pakistan to become a nuclear state. Recognitions of China in World politics and strategic cooperation (1971- 2000) • Pakistan signed a protocol on defence cooperation and production with China in 1974 and Islamabad became the centre of cooperation between the US and China. • The 1980s were the most important period of the Cold War due to the Soviet Union's invasion of Afghanistan and the cooperation of the United States, China, and Pakistan against the Soviet Union. And Pakistan played a significant role as an instrument in the Afghan War against the Soviets. The United States and China both provide military as well as economic support to Pakistan to combat evil. • In 1986, China signed a comprehensive nuclear cooperation agreement with Pakistan. In that agreement, China agreed to export four nuclear reactors to Pakistan to meet the country's energy requirements. The first two reactors were installed, and the remaining two were added in 2010. • In the 1980s, Pakistani and Chinese officials met several times in Beijing and Islamabad, and several Memorandums of Understanding were signed. • The last visit of the era was the visit of Pakistani Prime Minister Benazir Bhutto to the People’s Republic of China, and Chinese Prime Minister Li Ping visited Pakistan. This era was also full of cooperation and coordination between the followers of two different ideologies. Golden Age to Strengthen Economic, Military, and Strategic Cooperation and Bilateral Comradeship (2001-2016) • Musharraf took the most important initiatives over the operation of Gwadar's deep-sea port with China. The Chinese Premier, Zhu Rongji, visited Pakistan in May 2001. He urged the two sides to expand cooperation in agriculture, infrastructure, information technology, and other fields based on the principle of mutual benefit to achieve common goals. During this visit, Islamabad and Beijing signed six agreements and one memorandum of understanding (MOU). • Chinese Premier Wu Bangguo assisted Seaport Pakistan in achieving the groundbreaking ceremony for the Gwadar deep-sea port in 2002. Bilateral trade between Islamabad and Beijing reached $1.8 billion in the 2002 fiscal year. • Mir Zafarullah Khan Jamali, the prime minister of Pakistan, travelled to China in 2003. Both nations decided to expand their bilateral trade and collaboration during the visit. • President Musharraf also visited Beijing in that specific year. In the province of Xining, Pakistan and China collaborated on an army practice in 2004 and that exercise was basically for counterterrorism. • The total cost of the first phase was about $248 million. China also provided $200 million for the construction of the Coastal Highway connecting Gwadar to Karachi. • In the fiscal year of 2006, in November, the Chinese President visited Islamabad and signed the China-Pakistan Free Trade Agreement, which has been in force since July 2007. In 2007, the China-Pakistan joint venture multirole fighter aircraft JF-17 Thunder was publicly rolled out, and the first delivery was made. • Pakistan and China also signed an extradition treaty in 2007. • In April 2015, the Chinese President came to Pakistan and signed 51 MOUs and 11 projects, of which the China-Pakistan Economic Corridor (CPEC) is the most important and it is a part of the larger Belt and Road Initiative. Belt and Road Initiative • China’s Belt and Road Initiative (BRI) is a strategy initiated by the People’s Republic of China that seeks to connect Asia with Africa and Europe. • The BRI has also been referred to in the past as 'One Belt One Road'. • The BRI comprises a Silk Road Economic Belt – a trans-continental passage that links China with southeast Asia, south Asia, Central Asia, Russia and Europe by land. • It involves the "Silk Road, Economic Belt" and a "Southeast Asian Silk Road." • Pakistan has the ability to act as a connector for both routes because of its geographic position. • Beijing is defining the CPEC as a BRI "flagship initiative. The initiative defines five major priorities: 1) 2) 3) 4) 5) policy coordination; infrastructure connectivity; unimpeded trade; financial integration; and connecting people. • The China–Pakistan Economic Corridor (CPEC) is an ongoing development Infrastructure project which aims to transform the Pakistani economy by connecting Gwadar Port in southwestern Pakistan to China’s northwestern region of Xinjiang, via a network of Roads, railways and pipelines to transport oil, gas and other essential Natural resources. • The CPEC is considered to be the bedrock to further strengthen and expand Sino–Pakistan ties and will run about 3,000 km(Approx) from Gwadar to Kashgar. • CPEC is based on major collaborative projects for infrastructure construction, industrial development and livelihood improvement, aimed at socioeconomic development, prosperity and security in regions along it. • Total Chinese investment in this infrastructure project is around $46 billion, and the entire project is expected to be completed in a few years. CPEC Vision & Mission To improve the lives of the people of Pakistan and China by building an economic corridor promoting bilateral connectivity, construction, exploring potential bilateral investment, economic and trade, logistics and people-to-people contact for regional connectivity. It includes: • Integrated Transport & IT systems including Road, Rail, Port, Air and Data Communication Channels • Energy Cooperation • Spatial Layout, Functional Zones, Industries and Industrial Parks • Agricultural Development • Socio-Economic Development (Poverty Alleviation, Medical Treatment, Education, Water Supply, Vocational Training) • Tourism Cooperation & People-to-People Communication • Cooperation in Livelihood Areas • Financial Cooperation • Human Resource Development CPEC coverage. The CPEC covers China's Xinjiang Uygur Autonomous Region and the whole territory of Pakistan. In order to reflect the level, scope and layout of the construction and development of the Corridor, its coverage is divided into the core zone and the radiation zone. Key nodes. The node cities that the corridor passes through include Kashgar, Atushi, Tumshuq, Shule, Shufu, Akto, Tashkurgan Tajik, Gilgit, Peshawar, Dera Ismail Khan, Islamabad, Lahore, Multan, Quetta, Sukkur, Hyderabad, Karachi and Gwadar. Spatial layout. The CPEC's core zone and the radiation zone present the spatial layout of “one belt, three axes and several passages”. By “one belt” mean the belt area composed of the core zone of the CPEC, including Kashgar, Tumshuq city, Atushi city and Akto county in Kizilsu Kirghiz autonomous prefecture of Xinjiang, China, as well as Islamabad, parts of Punjab, Sindh, KhyberPakhtunkhwa, Balochistan, AJK and Gilgit-Baltistan. The “three axes” refer to three horizontal axes connecting Lahore and Peshawar, Sukkur and Quetta, and Karachi and Gwadar. The “several passages” refer to several railways and highway trunk lines from Islamabad to Karachi and Gwadar. Main components of the corridor: • Gwadar ( including port and city and Gwadar region socio-economic development) • Energy (Coal, Hydel, Wind, Solar, LNG, Transmission) • Transport Infrastructure (Road, Rail, Aviation) • Investment & Industrial Cooperation (Gwadar Free Zone and other industrial parks to be finalized) • Any other area of interest mutually agreed Strategic and Economic Context • Gwadar Port is the cornerstone of the whole gambit and Gateway to Southwest and Central Asia with its strategic significance extending from the Persian Gulf through the Indian Ocean to Southeast Asia and the Far East. • Almost 35 to 40% of sea-borne oil shipments transit through the Strait of Hormuz. • Gwadar located at the crossroads of three sub-regional systems, bridges the gap for transportation of this vital source of energy. • Therefore, it retains a fundamental role in the future economic prospects of about 20 countries in Central Asia, South Asia and China by providing an economically cost-effective and shortest route for transit and supply. • The Corridor will reduce the distance between Europe and Western China to less than half, thus saving time and billions of dollars yearly. Strategic & Economic Gains for Pakistan & China: complementarity of the economies would serve the economic interests of the two states, development of mutually beneficial infrastructure will further harmonize the efforts to counter common adversaries. Envisaged advantages and gains for the two sides are as under: • Economic development of relatively backward western regions especially Xinjiang will bring peace and stability facilitating trade with Central Asia to meet the growing energy needs. • CPEC would afford China the shortest access to its markets in Asia, Europe and beyond. The use of Gwadar Port will facilitate trade from the Persian Gulf and Africa to Western and Northern China reducing the distance by several thousand kilometres (almost 12500 Km) and slashing the cost by billions of dollars. • Almost 80% of China’s oil is currently transported from the Strait of Malacca to Shanghai. Transportation time of oil imports from the Middle East and Africa will be reduced from over 30 days to just 2 days after the completion of pipeline projects and will not be dependent on shipping through the Straits of Malacca and the vulnerable maritime routes. Besides the economic factor, presence in Gwadar is of great strategic value for China and would be a great strategic advantage in case of war in Asia and blockade of the Strait of Malacca. • For Chinese investors, Pakistan has a lot to offer in multiple sectors because of low labour costs. • In the strategic context, CPEC conforms to Pakistan’s security paradigm and “Look East” policy and will serve towards the furtherance of strategic partnership. • Located at the crossroads of huge supplying and communicating markets, the fully functional Gwadar Port linked with China and Central Asia can play a vital role in the economic revival of Pakistan. • It also affords a great opportunity for the socio-economic development of Gilgit-Baltistan and Balochistan Province. • Pakistan would benefit through investment from China for the development of requisite infrastructure and to bridge the energy shortfall. This will help Pakistan in realizing the potential to become a regional trade hub and energy corridor thereby bringing huge transit revenues and employment opportunities. • Even the conservative estimates show projected possible revenues of over 100 billion dollars on account of transit revenue per annum in long term besides creating employment opportunities in hundreds of thousands. • With 95% of Pakistan’s trade through sea and its economy heavily dependent on sea trade, the development of Gwadar Port and its connectivity is of extreme significance to reduce the load on Karachi and Bin Qasim ports for the furtherance of Pakistan’s Seaborne trade. Key Imperatives for Pakistan: • Regional connectivity by linking major ports of the country with trade routes through highways, railways and oil pipelines. • Development of world-class efficient logistic chain and Infrastructure and trade facilitation. • Development of special economic industrial zones and transit facilities along the Corridor. • Increasing oil storage connected through pipelines. (e) Water and hydro-power development including mega dams on Indus Cascade coupled with medium-sized HPPs. • Exploration and development of mineral resources to fund the economic programme. • Last, but not least is the development of skilled human resources. Conclusion: • Since the establishment of the diplomatic relationship, both states have enjoyed a weather-tested friendship. Pakistan and China cooperated with each other in all joys and sorrows. • China helped Pakistan in different wars with India, like the 1965, 1971, and 1999 wars. Islamabad also supported Beijing at the United Nations, and she also supported the one-China policy. • China also helped Pakistan in becoming a nuclear power. China also provided missile technology to Pakistan in order to strengthen its defence and security. • The CPEC is a rare opportunity for Pakistan to realize its truly strategic and economic potential. CPEC and JF-17 Thunder are one of the most prominent symbols of friendship. Owing to the strategic and reliable relationship between Islamabad and Beijing.
