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Karachi to Kashgar: Colossal Chinese Commerce

December 18, 2010

Karachi to Kashgar: Colossal Chinese Commerce. China’s lifeline lies not through the Straits of Malacca–but now through the Karakorams to th Arabian Sea and the Persian Gulf.

Pakistan is ideally located geographically with immediate access to the Central Asian Republics and has a competitively affordable and expanding work force of 36 million.  Pakistan’s foreign investment policy was open and liberal, which was good news for Chinese companies interested in doing business here–and several hundred Chinese CEOs have flocked to Pakistan (before Web’s trip and after) to take advantage of the business opportunities.

“Some of the areas of investment include steel, automobile, electronics and domestic appliances,”. Pakistan’s ministry for industries.

China cannot get to warm waters of the Gulf without Pakistan. Bharat cannot getCentral Asian energy without Pakistan.


The Russian tried to conquer their war to Karachi, but could not get past Kabul. The Americans have tried to bomb their wat to Central Asia and failed miserably. Delhi has tried to bully its way to Afghanistan and has had no success. Now China has used the freindly methods, and Pakistanis opened their hearts to the Chinese. Beijing has unfettered access to Gwader, being served to to on a silver platter.

  • “There is the view that the U.S. is just here for a short period of time and that they do not have long-term interests,” … “Whereas China has a very long-term interest with Pakistan and they will always stay with Pakistan because they are your neighbor.” said Hamayoun Khan, a former researcher at the China Studies Center at the Institute of Strategic Studies in Islamabad
  • While China doesn’t make the conditional demands the U.S. does in its relationship with Islamabad, Beijing is not left empty-handed from its ties with Pakistan. The country serves as China’s gateway to the Muslim world, and is a close and cheap source of natural resources to fuel its growing economy.
  • “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 China’s western provinces,” said Daniel Markey, an analyst on South Asia at the Council on Foreign Relations in Washington.
  • In recent years, Pakistan’s strategic importance to the United States has soared because of its role in fighting militants along the border with Afghanistan. Pakistan’s rugged tribal regions are also where Osama bin Laden and other senior al-Qaida leaders are believed to be hiding.

While the USA constantly harps on the “Do More Mantra” and gets very upset when Islambad doesn’t–Islamabad is eager to do more for China. That is the nature of the relationship.

  • Pakistan also hopes to sign business agreements valued at $20 billion with executives from companies traveling with Wen
  • Chinese engineers have finished a feasibility study for a railroad and pipeline from Gwadar to the western Chinese city of Kashgar
  • A transport corridor to Gwadar “will provide China with the shortest possible route to the oil-rich Middle East.
  • Pakistan may seek Chinese investment in five state-owned enterprises
  • Pakistan will host an electric-car manufacturing plant.
  • Chinese businesses will money into Heavy Mechanical Complex Ltd.,  the Haripur-based Heavy Electrical Complex Ltd.,  the Pakistan Machine Tool Factory and Pakistan Engineering Co. Ltd.
  • China’s plan to add two nuclear reactors to a power-plant complex in Pakistan’s Punjab province

Chinese Premier Wen Jiabao travels to Pakistan today for a visit that officials say may revive a planned road-rail network linking China to the Persian Gulf.

Pakistan also hopes to sign business agreements valued at $20 billion with executives from companies traveling with Wen, Defense Minister Chaudhary Mukhtar Ahmed, said yesterday.

Wen and Prime Minister Yousuf Raza Gilani will meet today to discuss how to make the Chinese-built port of Gwadar operational, Gilani told journalists on Dec. 15, according to the state-run Associated Press of Pakistan. The port is envisioned as the terminus of a transport corridor that would carry Middle Eastern oil and other goods to western China.

Chinese engineers have finished a feasibility study for a railroad and pipeline from Gwadar to the western Chinese city of Kashgar. It would follow the route of the China-built Karakoram Highway, a Chinese specialist on Pakistan, Li Xiguang, wrote on Dec. 14 in the Global Times, an English-language website controlled by the ruling Communist Party’s official newspaper.

A transport corridor to Gwadar “will provide China with the shortest possible route to the oil-rich Middle East, replacing the dangerous maritime route” around Southeast Asia, Li wrote.

Gwadar is currently connected to the business hub of Karachi and the rest of Pakistan by a 450-kilometer (280-mile) road, most of it two lanes, that has suffered repeated flood damage in recent years.

Pakistan’s President Asif Ali Zardari has been a regular traveler to China since heading there for his first state visit after being elected in September 2008.

==

  • Without going into details, officials here admit Pakistan has a civil nuclear co-operation agreement with China, a counterweight to India’s agreement with the United States on nuclear energy co-operation.
  • Pakistan depends on China’s financial and political clout to offset the perceived threat from chief rival India and rescue its economy from the doldrums of catastrophic flooding, a severe energy crisis and poor foreign investment.
  • “Pakistan would like to benefit from Chinese experience in agriculture and energy sectors but the major breakthrough is expected to take place in the banking sector,” Pakistan’s ambassador to China, Masood Khan, told state television.
  • Reports say Mr Wen will open a branch of the Industrial and Commercial Bank of China (ICBC), the top private bank in China.
  • Pakistan is also keen to enhance student and scholarship exchanges that would allow it to tap into China’s growth in science and technology. Telegraph. UK.

Reactor Concern

The budding bilateral relationship has triggered U.S. concern over China’s plan to add two nuclear reactors to a power-plant complex in Pakistan’s Punjab province. The U.S. has said China should get approval from the 46-country Nuclear Suppliers’ Group, which works to avoid the uncontrolled spread of nuclear technology.

Pakistan may seek Chinese investment in five state-owned enterprises and offer to host an electric-car manufacturing plant, its industries ministry said in an e-mailed statement yesterday. “Some of the areas of investment include steel, automobile, electronics and domestic appliances,” it said

The ministry said it hopes Chinese businesses may put money into Heavy Mechanical Complex Ltd., a builder of armored vehicles for Pakistan’s military based in Taxila, near Islamabad, the Haripur-based Heavy Electrical Complex Ltd., and the Pakistan Machine Tool Factory and Pakistan Engineering Co. Ltd., which are both based in Karachi.

Wen will lay the ground for the opening of a branch of the Industrial and Commercial Bank of China, Li wrote. He is also set to address Pakistan’s National Assembly. To contact the reporter on this story: James Rupert in New Delhi at jrupert3@bloomberg.net; Khurrum Anis in Karachi, Pakistankkhan14@bloomberg.net To contact the editor responsible for this story: Bill Austin at billaustin@bloomberg.net. Wen Visits Pakistan to Revive Road-Rail Link from China to Gulf
By Khurrum Anis and James Rupert – Dec 16, 2010 6:48 PM GMT-0800

  • “Up to 20 billion dollars worth of projects with Chinese help have been completed in Pakistan,” a Pakistani government official said.
  • “Work on projects worth 14 billion dollars is continuing at present
  • Another 20 billion dollars will be signed between the two sides during the visit,” he added. Telegraph. UK.

As the Pakistani economy integrates itself with China, the wold witnesses the correct Pakistani policy of aligning with Beijing. Today that path of friendship is irreversible-the entire spectrum of Pakistani body politics supports China–there is absolute consensus on friendship with China–this is a very emotional issues for Pakistanis.

 

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2 comments

  1. […] Karachi to Kashgar: Colossal Chinese Commerce « Pakistanthinktank313′s Blog. […]


  2. Awesome webpage!



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