China’s emergence as a global power amid shifting power dynamics is reshaping the international landscape, with a profound impact at global and regional levels. As the world’s second-largest economy, China’s rapid military modernisation and focus on niche technologies have bolstered its influence on the global stage, allowing it to protect its interests and shape geopolitical configurations. Its principled approach to international issues, such as the conflicts in Ukraine and the Middle East, showcases its growing diplomatic clout and commitment to global stability.
The Pakistan-China relationship is defined as an “All-Weather Strategic Cooperative Partnership”, reflecting a deep-rooted friendship and mutual support across all sectors, especially defence and economic cooperation. The China-Pakistan Economic Corridor (CPEC) serves as a cornerstone of this partnership and represents a strategic alignment of interests. It has the potential to facilitate Pakistan’s rapid development, enhance regional connectivity, and foster prosperity. Beyond infrastructure development, CPEC opens up a range of new opportunities for trade, investment, and technological cooperation between the two nations. However, to fully harness these opportunities, Pakistan needs to overcome institutional and administrative obstacles, fast-pace the establishment of Special Economic Zones (SEZs), and bring about a qualitative change in ease of doing business in the country.
Additionally, the CPEC has the potential to reshape the geopolitical landscape of South Asia by strengthening Pakistan’s role as a regional hub and providing China with alternate trade routes that bypass maritime chokepoints. With the completion of CPEC’s first phase focusing on energy and infrastructure, the second phase aims to deepen industrial cooperation and expand bilateral economic ties, further cementing the bonds between the two nations. The success of CPEC will have a transformative impact on Pakistan’s growth and development.
Importantly, Pakistan-China strategic partnership contributes to stability and regional equilibrium in South Asia and peace and stability in the broader region.
Recognising the crucial need to carefully navigate this strategic partnership further into the future, the Centre for Aerospace & Security Studies (CASS), Lahore, convened a seminar on 18 April 2024 titled “Bolstering Trajectory of Pakistan’s Strategic Ties with China”. The seminar served as a platform for insightful discussions by distinguished speakers, shedding light on the evolving dynamics of China’s global role, Pakistan’s strategic partnership with China, the next phase of industrial development and the potential of CPEC beyond 2030.
China’s role in global politics is essentially linked to its rise. The world has never witnessed anything like the rapid and tectonic shift in the global balance of power created by the meteoric ascendancy of China. It has not indulged in aggression or colonisation. China is opposed to power politics and Cold War mentality. China supports multilateralism. This advocacy resonates with majority of countries.
On the strength of its financial muscle and diplomatic influence, China is expanding its global footprint. As the second largest economy of the world with a GDP of $18 trillion, China presently contributes 30 percent to the world’s economy. The centre of economic gravity is shifting from the West to the East.
The United States regards China as the principal competitor. The Indo-Pacific strategy of the US formally declares containment of China as a policy imperative. India has been chosen as a counterweight to China. Despite their interdependence, US-China relations are on the edge. The main reason is the gradual erosion of the US pre-eminence. Taiwan is a red line for China and is a potential flash point.
China is determined to achieve qoals of “National Rejuvenation” in two phases: To make China a ‘modestly prosperous society’ by 2035 and to convert China into a ‘high income country’ by 2049.
In the new power dynamics, there is greater strategic convergence between China and Russia against the US “double containment” strategy.
China is Pakistan’s unwavering and reliable strategic partner. Wide ranging and multidimensional defence cooperation with the Armed Forces of Pakistan is a significant element of this partnership. This includes, among others, supply of military equipment, technological support, modernisation of defence facilities, ongoing project of eight submarines being built for Pakistan Navy and consistent support for the PAF, notably through flagship projects like the JF-17. the induction of the Chengdu J-10C and planned acquisition of the fifth-generation J-31 Gyrfalcon stealth fighter aircraft.
CPEC serves as the bedrock of economic cooperation between the two countries. It reflects the confidence China places in Pakistan. Geographically, the success of the BRI considerably depends on CPEC as it provides a shorter and alternate route Success of Phase of CREC is crucially important for Pakistan’s economic turn-around.
Pakistan’s bilateral ties with China are deep-rooted, multifaceted, long-standing and iron-clad, based upon mutual trust, respect and support for each other. Over the years, the relationship has blossomed into an All- Weather Strategic Cooperative Partnership. Strong relations with China enjoy a broad consensus across the political spectrum. Similarly in China, Pakistan enjoys the utmost priority in the former’s neighbourhood policy.
China is Pakistan’s main partner in aerospace. It has helped launch a number of Pakistani satellites in space. Soon, a Pakistani astronaut will travel in space aboard a Chinese spacecraft.
All-weather strategic partnership with China should remain a cornerstone of Pakistan’s foreign policy. This partnership is vitally important for Pakistan’s national security and development. To further strengthen and diversify this strategic partnership must remain a top priority.
Pakistan needs to maintain the right balance between its vital political, security and economic ties with China on the one hand and its valuable relations with the US- led West on the other. However, Pakistan’s strategic focus should remain firmly directed towards Beijing.
CPEC is the buckle of the belt (BRI). Success of CPEC must remain a high priority. Concerted efforts are required to ensure the success of ‘Phase II of CPEC that will focus on industrialisation, agriculture and IT etc. Gwadar and ML1 are cruicial for regional connectivity. In implementing projects like ML1, local production and transfer of technology should be emphasised.
Industrial development, especially geared towards exports, including for the Chinese market has to be a top agenda. CPEC-specific SEZs all over Pakistan should be operationalised as plug-and-play with urgency. Serious efforts are also required to encourage relocation of some of the Chinese export oriented industry in Pakistan.
To encourage investments in Pakistan, bureaucratic red tape has to be removed and the ease of doing business must be improved. The one-stop-shop idea incorporated in Business Fecilitation Centres in Punjab is a good begining. At the same time, concerted efforts are requird to enhance productivity of Pakistani labour.
Collaboration with China in projects entailing science and technology, including Al, IT, clean, green and renewable energy. EVs, oil and gas, minerals development etc. are most desirable. Pakistan needs to develop and use Technology Zones and forge closer cooperation with China.
Safety of Chinese personnel in Pakistan has become a major concern of the Chinese. A second attack at Dasu showed gaps in security arrangements. Pakistani authorities have to provide foolproof security to the Chinese. Pakistan also has to ensure that contractual obligations with the Chinese companies operating in Pakistan are fulfilled in letter a spirit. This includes timely payments and repatriation of profits as agreed in contracts.
China today is Pakistan’s largest trading partner. Last year, bilateral trade was around $27 billion. Of this amount, Pakistan’s exports to China were merely $3.5 billion, leaving a yawning gap in favour of China. This extent of trade deficit is unsustainable and efforts must be made to bridge it with exports of value added industrial goods to China, using FTA II.
Close collaboration with China in defence, security and aerospace is vitally important for Pakistan’s national security. All efforts should be made to further strengthen this cooperation.
A comprehensive report capturing expert analyses, strategic insights, key recommendations, media coverage, and event highlights.
The Centre for Aerospace & Security Studies (CASS) was established in July 2021 to inform policymakers and the public about issues related to aerospace and security from an independent, non-partisan and future-centric analytical lens.
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