« Previous | Main | Next »

What's Cooking Between Pakistan & China?

October 16, 2008 8:58 AM

By BETH LOYD, ABC News Beijing

Pakistan’s Asif Ali Zardari is wrapping up his first state visit to China since becoming president. 

He met with Chinese President Hu Jintao and the two signed a dozen deals ranging from trade, agriculture, mining, environmental protection and satellite technology after a two-hour summit at Beijing’s Great Hall of the People. No specifics of the deals have been released yet, but without a doubt, Pakistan has succeeded in getting more much-needed financial assistance from its strong and friendly ally. 

Pakistan is well beyond financial crisis mode and desperately needs a fast infusion of investment and some breathing room, or it could face economic collapse and civil unrest. China has provided that relief. 

One issue that remains unresolved is a nuclear power deal between the two countries. The United States signed one such controversial civilian nuclear deal last week with India, Pakistan’s historical rival and China’s economic rival in Asia. But experts say a nuclear deal between China and Pakistan is not imminent, as the political situation in Pakistan is unstable and the Chinese are wary. 

But the economic ties between the two nuclear countries are growing stronger. Bilateral trade topped $7 billion last year with a goal of reaching $15 billion by 2011. 

It is an incredibly important relationship, particularly for struggling Pakistan. The two nations have been friends for 57 years. So, it only makes sense that a desperate Pakistan, hemorrhaging foreign currency reserves, would come to China, which holds the world’s largest reserves, for help. Zardari told a meeting of 200 Chinese corporate executives that they would get “special preferential treatment” and urged them to invest in Pakistan and take advantage of its geostrategic location. 

Zardari said at a joint news conference with Hu, “The only way I could do justice to the memory of my late wife and my late father-in-law was to make sure that my first state visit as president was to China. … I am hoping to assist to take the China-Pakistan relationship further along. It is a duty, which history has bestowed upon me.”

The historical relationship between China and Pakistan goes further back than the Bhutto family and expands beyond economic issues. Before China had a seat on the U.N. Security Council, Pakistan always voted in China’s favor and always rejected any support of Taiwan. 

And Pakistan played an instrumental role in facilitating the normalization of relations between the United States and China. Secretary of State Henry Kissinger secretly flew to Beijing from Pakistan in 1971, making the way for President Nixon’s visit later that year. This came as the Nixon administration became more and more wary of India’s relationship with the Soviet Union. 

As for what Pakistan gets out of the relationship, it’s clear that financial assistance is paramount, particularly as the rivalry with India persists and India grows in economic strength. China has historically not been fickle about Pakistan’s politics and China hardly ever gets involved in the internal affairs of its partnering countries, much to the dismay of the international community in cases such as Sudan. China has been friendly with all of Pakistan’s leaders since the 1950s and does not criticize Pakistan for its relationship with the United States. 

Military might is also a consideration. China has the largest army in the world and Pakistan would need China on its side if conflict broke out with India.  But there is also a general admiration of China, according to ABC News’ Asia correspondent Stephanie Sy. While Sy was reporting from Pakistan recently, many Pakistanis thought she was Chinese and were keen to share their effusive praise of China with her. They consider their neighbor a role model for its rapid rise from a Third World country to an emerging economic superpower. At the Pakistani embassy in Beijing, Chinese people can get easy visas to Pakistan and they are free of charge.   

But what does China get out of this relationship? China needs allies in that region as it seeks to maintain and further its economic strength in Asia and across the globe. India’s growth and increasing exports are a threat. And India is also home to the Dalai Lama, who has no fans among the Communist leadership of China.   

In December, the United States is sending a mission of businessmen to India to explore business opportunities after the landmark pact to open up sales of civilian nuclear technology to the country, lifting a three-decade ban. Bilateral trade between the United States and India was nearly $42 billion in 2007, up 55 percent from 2005. 

So, as issues evolve and dynamics change in the region and across the world, there exists between China and Pakistan a mutually beneficial strategic relationship that has been proved historically sound and which both are committed to maintaining for many years to come. 

Read more blogs by Beth Loyd

Read more blogs by ABC News staff

October 16, 2008 in Beth Loyd | Permalink | User Comments (1)

User Comments

Posted by: anjilinjones | Oct 17, 2008 7:38:41 AM

Post a comment

Name:

Email Address:

URL:

Remember personal info?

Comments: