Feature 
 

Opinion Exchange

Understanding Chinese Perspectives

The lack of a clear policy has been a stumbling block for Chinese investors.

By Dr. Muhammad Ali Shaikh | August 2025


Recently, a delegation of nine scholars and academics from Sindh travelled to China to hold discussions and exchange views with Chinese professors and scholars on China-Pakistan relations. I had the honour of leading the delegation, which included a vice chancellor, deans, departmental chairs, and directors of institutes and centres from various universities in Sindh.

During our visit, we had the opportunity to meet with President Dr. Wang Fan and his team at China Foreign Affairs University in Beijing. We also interacted with faculty and researchers at Peking University in Beijing and Fudan University in Shanghai. Additionally, we met Mr. Peng Xiubin, the Director-General of the International Department of the Communist Party of China (IDCPC).

We covered a range of topics, from enhancing educational cooperation between the two countries to various aspects of China-Pakistan relations. We discussed historic ties between China and Pakistan in diplomacy, defense, economics, and strategic collaboration. However, our primary focus was on understanding our hosts’ views on the challenges and opportunities in economic cooperation between the two nations, especially under the China-Pakistan Economic Corridor (CPEC).

Successful Relations in Defence and Diplomacy
Pakistan and China established diplomatic relations in May 1951. Since then, both nations have benefited from each other’s cooperation. On the part of Pakistan, it supported China during its early years when communist China faced international isolation. It was Pakistan International Airlines (PIA), the country’s flagship airline, that launched flights to China in 1964, becoming the only non-communist nation to do so. In this way, Pakistan served as a bridge between communist China and the so-called ‘free world’ for decades.

Pakistan also played a key role as an intermediary between the US and China in the 1970s, heralding a new chapter in their bilateral relations. Presently, Pakistan holds the key to China’s easier access to the Arabian Sea and Persian Gulf, serving as its gateway to the Middle East and Africa. This aspect has gained enormous importance in recent years, particularly in light of geostrategic factors in the South China Sea and the Malacca Strait. Our Chinese hosts were fully mindful of Pakistan’s past, present, and potential future roles for their country.

On its part, China has consistently supported Pakistan diplomatically, even to the extent of using its veto power at the UN Security Council to protect Pakistan’s key interests. It has also played a key role in improving Pakistan’s defense and strategic capabilities. A prime example of their defense partnership is the development of the JF-17 Thunder multi-role combat aircraft in Pakistan, with Chinese assistance. This collaboration has resulted in numerous international orders worth billions of dollars and has strengthened Pakistan’s air force.


Mixed Outcomes in Economic Cooperation
However, the two nations’ experience with economic cooperation has had mixed results. They launched their first major economic partnership through the multi-billion-dollar China-Pakistan Economic Corridor (CPEC), officially introduced on April 21, 2015, during Chinese President Xi Jinping’s visit to Pakistan. The main focus of the project was on developing Gwadar Port, upgrading transportation infrastructure, increasing energy production, and promoting industrial cooperation.

The outcome of this endeavour after ten years can only be considered a partial success. For example, although Gwadar Port has been fully developed to international standards, its operation remains limited to only a small portion of its capacity, primarily due to security concerns and government policies. Similarly, in the case of transport infrastructure, the CPEC has not yet provided funding for the most crucial part of the motorway network, M-6, which connects Sukkur with Karachi. In the realm of industrial cooperation, through which industrial units were to be installed in Pakistan with Chinese assistance, little progress has been made, mainly due to the security situation in Pakistan.

Future Prospects
Despite these challenges, we agreed that economic cooperation with China remains essential for Pakistan’s economic development. To accomplish this, Pakistan needs to address certain issues to create an enabling environment. The first item on the ‘to-do’ list for Pakistan is to improve its security situation, eliminating terrorism based on religion and regionalism that has targeted several Chinese citizens working in Pakistan, as well as Pakistani soldiers, citizens, and even children.

Additionally, our Chinese friends highlighted the absence of an enabling, efficient, and consistent foreign investment policy in Pakistan as a reason for the slow pace of Chinese industrial investment. They believed that the lack of a clear policy has been a stumbling block for Chinese investors who want to invest significantly in Pakistan.

Regarding Gwadar Port, which had been fully developed with enormous Chinese assistance but was vastly underutilized, we agreed to emphasize maximizing its operation by adopting innovative solutions. We discussed various successful models, such as the ports of Dubai and Singapore, which were declared “freeports” and have attracted business worldwide. We found that their case studies may serve as a key to the successful operation of Gwadar Port.

Based on their experience, our Chinese friends recommended that we focus on providing our youth with world-class education and technical and vocational training in emerging fields, which is vital for industrial and economic growth. They also advised involving the local population in development projects by developing local human resources for specific projects.

Most importantly, both sides agreed that Pakistan has the most strategic geographical location, which makes it a natural route for international trade and commerce. Located at the junction of South Asia, West Asia, and Central Asia, Pakistan has the potential to connect all these regions, greatly benefiting from the resulting trade. This makes Pakistan a crucial part of China’s Belt and Road Initiative (BRI), thereby designating CPEC as the flagship program of the BRI.

In summary, our discussions in China concluded that Pakistan possesses all the essential conditions to become a fully developed and economically prosperous nation. It only needs to overcome some of the challenges and obstacles mentioned earlier. Our Chinese friends assured us that China would fully support its ‘iron-clad brother’ with all possible aid for the benefit of both great nations.

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