when both the countries signed a free trade agreement – China Pakistan Free . or a taxation of imports or exports for fiscal purposes. .. of cotton yarn to China ( until ); Thailand dominated as leading rice exporter to China until "Both sides will continue to view China-Pakistan relations from a . China says willing to help Pakistan over fiscal crisis but more talks needed. Beijing wants to extend scope of tax concessions. Under the November China-Pakistan Economic Corridor (CPEC) Energy of Pakistani economy, they will read as game-changing and trade and business deals equals or more than the amount of tax the investor is asking credit on.
Imran Khan called on H. Xi Jinping, President of China, held talks with H. Li Keqiang, Premier, and met with H. Wang Qishan, Vice President of China respectively" the statement says, suggesting Premier Keqiang was the key point person in the talks with the Pakistani prime minister. The statement hailed the ties between Pakistan and China, saying they had "withstood the test of time, notwithstanding the changes in domestic, regional and international environments.
China and Pakistan launch economic corridor plan worth $46 billion
The language appears to be aimed at rolling back some of the PTI's commitments to 'review' CPEC projectsas well as some of the criticism it has levelled at the energy projects in the past. The last session was held in Islamabad in Novemberduring which the Long Term Plan was finalised. Both sides agreed to accelerate work on Gwadar and its auxiliary projects, as well dismissing "the growing negative propaganda against CPEC" while underscoring their "determination to safeguard the CPEC projects from all threats.
In addition, both sides also agreed to boost cooperation in a wide range of areas, including tourism, maritime issues, navigation security, marine economy, resources, research and environmental protection. In addition to marine economy, emerging technologies like nanotech, biotech and ICT will also see strengthened collaboration to increase their contribution in health, agriculture, water, energy and food security.
Space cooperation will also be promoted, building on the launch of Pakistan's Remote Sensing Satellite earlier this year.
Cooperation will now be enhanced in areas like climate change, desertification control, desalination, water management, afforestation and ecological restoration, wetland protection and restoration, wildlife protection, forestry industry development, disaster management and risk reduction among others.
In addition to this, the Chinese are planning to overhaul Pakistan's road and rail infrastructure.Pak China Friendship now in TV Commercials
Apart from upgrading the Karakoram highway that will serve as a key arterial link connecting Xinjiang and Gwadar, it is already being used to ship goods transported from Xinjiang by road, by sea to West Asia-China is also revamping the country's crumbling national highway and railway network, starting with upgrading sections of the Karachi-Peshawar road and rail line.
In the s, Mao set up the Xinjiang Production and Construction Corps XPCCa state within a state tasked with carrying out agriculture and development projects in what was then China's wild west. China will even construct a national storage network of warehouses for Pakistan, starting in Islamabad and Gwadar and then in Karachi, Lahore and Peshawar. The draft also outlines a move to transport China's waning textile industry, currently grappling with rising wages, to Pakistan.
As a start, a cotton processing plant with atonne output has been planned.
China and Pakistan: Friends or Not? - The American Interest
The longer-term plan, Renmin University's assessment suggests, is 'shifting China's garment industries directly to Pakistan'. Beyond the lower wages and availability of land, China sees the favourable export tariffs Pakistan enjoys as a motivation.
China is also planning to develop Pakistan's mineral resources, particularly in Balochistan and Khyber-Pakhtunkhwa, eyeing gold reserves as well as setting up marble and granite processing sites.
China has already built a port here that it is managing. Beyond the port, which will give China access to the Indian Ocean, it envisages a free trade zone and manufacturing hub that could serve as a launch pad for exports to West Asia and Africa. China has already secured a year tax-free deal for its companies that will operate out of Gwadar.
The CPEC masterplan rather ambitiously even envisages a coastal tourism belt in restive Balochistan, planning 'international cruise clubs' in Gwadar that would 'provide marine tourists private rooms that would feel as though they were "living in the ocean''.
China sees the Gwadar port as the heart of the plan. The Renmin University study forecasts an ambitious annual cargo throughput of million tonnes, more than 10 times Pakistan's current biggest port, Karachi, and, the study pointedly adds, almost equivalent to India's total current throughput. The university's researchers found that Gwadar, still nowhere close to capacity, had been transformed under Chinese management. In Februarythe China Overseas Port Holdings Limited acquired the rights to operate the port from the Singapore Port Authority, which left the port in a state of ruin, 'filled with rubbish and garbage', until the Chinese took over.
In November, the first CPEC export was flagged, as a convoy carrying 60 containers of a range of Chinese goods, from machinery to appliances, to be exported to West Asia and Africa, arrived in Gwadar after travelling 3, kilometres from Xinjiang along the Karakoram highway. A significant portion of the Renmin University assessment was devoted to assessing risks, the biggest of which, in the Chinese view, is Pakistan's unpredictable domestic political environment.
For instance, it cited a project in Sindh that faced a lack of support from the local government.
The report also noted the heated controversy between states over the CPEC's alignment, with widespread resentment that Punjab, where Prime Minister Nawaz Sharif and his brother Shahbaz, the chief minister, are dominant figures, was acquiring prime projects. The Chinese study warned of 'ethnic and provincial conflicts in Punjab, Sindh and Balochistan', but was optimistic that most provinces and parties were supportive as 'except Balochistan no other ethnic group party opposes CPEC'.
The report concluded that a government under Nawaz Sharif would ensure the project's progress, expressing concern about his weakening domestic position after the Panama Papers revelations. Security is the other major concern, highlighted by the kidnapping and reported killing of two young Chinese from Quetta, Balochistan, in May. The Chinese study cited a number of other incidents that had targeted its citizens in In May, a Chinese engineer at the Kazmu project was targeted by a bomb attack claimed by an outfit called the Sindh Revolutionary Force.
Two months later, a bomb attack in Quetta killed 74 people, while in November last year, a team from a Chinese oil and natural gas exploration company was targeted in an attack by a group called the Baloch Revolutionary Army in which two Pakistani security personnel killed.
The Pakistan army has deployed a special security division of 15, troops to protect Chinese personnel and assets, but the report argued that 'a troop size of 15, can hardly guarantee the safety of projects around the country And considering that Pakistan needs to deploy a large number of troops in its eastern borders adjoining India and now needs to deploy troops in Afghan border, allocating 15, is the largest capacity.
The Chinese report worried this will alienate the local population because 'Chinese personnel are carrying out work under the protection of armed forces and this inhibits improving relations with local people to the extent that it could lead to opposition and lack of people's support'. For some in Pakistan, the long-term fear is that this blueprint will, as economist Zaidi notes, render it a 'vassal state' deep in China's economic orbit.
There are already murmurs of discontent about the favourable terms for Chinese companies. Sovereign guarantees to Chinese power producers have been made, where the Pakistan government will, 'if the power purchaser defaults on payments, pick up the liability and pay 22 per cent of the bills of Chinese power producers upfront'". On May 13 this year, India refused to participate in China's Belt and Road with a strongly-worded statement. For long, India has held the Kashmir issue as a bilateral dispute with Pakistan, with no room for outside intervention.
China has now willy-nilly become a party to it. The presence of Chinese personnel within Pakistan is something India must take into account in the event of hostilities, he says. For instance, China and Pakistan have begun joint patrols in PoK near the Xinjiang border, Chinese media reports have said. Even as China now lambasts India as a "third party" with a "hidden agenda" for "intervening" in its dispute on the Doklam plateau with Bhutan, Beijing has quietly deployed its frontier troops on the soil of PoK, which India considers its territory.
In the event of an Indo-Pak conflict, Indian officials do not expect China to intervene directly, but the infrastructure it is laying down in PoK can be used to back Pakistan with massive logistics support. The larger concern is that collusion between the two countries is now assuming sinister dimensions.
Gwadar is likely to become China's second overseas naval base after Djibouti near the Gulf of Aden. The port also sits astride the sea routes from where more than 55 per cent of India's energy needs flow in.