Pakistan China Economic Cooperation And American Regional Objectives(1998-2008
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Pakistan China Economic Cooperation and American Regional Objectives 1998-2008 Zamurrad Awan & Zainab Mazhar
ABSTRACT Pakistan and China has realized the missing economic dimension in their strategic relationship although China remained a steadfast friend and helped Pakistan in building several important projects related to defense and economic development. Therefore in last few years, the two governments have convened a number of high-level conferences/forums, inaugurated by their respective leadership in Pakistan and China, to promote economic cooperation thereby exhibiting interest, resolve and patronage to the private sector business community of the two countries. However, United States of America emerged as the only superpower after its victory in Cold War and to extend its influence US brought Japan deeper into the security net by increasing its supply of weapons to Taiwan and started building India as a counterweight to China.
List of Abbreviations GDP US PLA U.N MOU MCC CMC CPECC EHP PTCL FME FTA FDI MFN SAARC NATO USSR ISI USA EU ETIM ECO IAEA TMD NMD BIT
Gross Domestic Product United States People's Liberation Army United Nation Memorandum of Understanding Metallurgical Construction Corporation of China China National Machinery Import and Export Corporation China Petroleum Engineering Construction Corporation Early Harvest Programmed Pakistan Telecommunication Company Limited Free Market Economy Federal Transit Administration Foreign Direct Investment Most favored nation South Asian Association for Regional Cooperation National Antarctic Treaty Organization Union of Soviet Socialist Republics Inter-Services Intelligence United State of America European Union The East Turkistan Islamic Movement Economic Cooperation Organization International Atomic Energy Agency Theatre Missile Defense National Missile Defense Bilateral Investment Treaty
CHAPTER 1 INTRODUCTION
The Statement of the problem
The U.S economic policy toward China and Pakistan has given rise to the perception that the US wants to delay or even block China’s emergence as a major economic power. The friendly relations between China and Pakistan are not been liked by America. Although, the partnership of China and Pakistan for prosperity cannot be ignored after keeping in view, the geographical stature of both countries.
Background of the Problem
Pakistan was the first Islamic country to recognize the People Republic of China on January 4, 1950. Though Pakistan established diplomatic relations with China in 1951 but the actual consolidation of relations had started in the early 1960s, when Pakistan changed its previous stance and supported China’s seating in the UN in 1961. Pakistan on its part sincerely helped China to end the isolation by signing an air-transport agreement and trade agreement and helping China to maintain its contact with different of countries, especially with the Islamic world. But every time US rushed military and economic assistance to India which caused a serious threat to Pakistan.
Rationale
The study is to high light the main trends between the economic relations between Pakistan and China and to analysis the impact of these trends on the realization of US objectives. Moreover, the suggestions and recommendations for the neutralized relation between China and Pakistan has been given.
Hypothesis Formulation The increasing Pakistan-China economic co-operation is an impudent for the realization of American regional objectives. The study would limit a thought and exhaustive analysis of the problem emerged in Pakistan-China relations along with the real perceptual climate of the economic trends in between both countries
CHAPTER 2
LITERATURE REVIEW
Kornberg; Judith; Faust (2005) introduces the China's foreign policy--past and present--and the factors that may influence the country's future policy agenda
Zhang;Yongjin; Austin (2001) has discussed that Power and Responsibility in Chinese Foreign Policy provides a critical insight in to the critical issues in China's international relations - China's regional and global diplomatic and security problems, the changing role of the People's Liberation Army, human rights, religious and democratic movements, and the concept of responsibility
Kanishkan (2005) in their book Uneasy neighbors: India, Pakistan, and US foreign policy, write in details the history of 'Partition', the critical event in the modern history of the subcontinent and the fundamental catalyst for the enduring rivalry between India and Pakistan. It provides a summary description and analysis of the characteristics - demographic, socialcultural, political, economic and military - of the three primary actors that are party to the conflict: the sovereign states of India and Pakistan and the territory of Kashmir.
Yongjin ; Austin (2001) has discussed that Power and Responsibility in Chinese Foreign Policy provides a critical insight in to the critical issues in China's international relations - China's regional and global diplomatic and security problems, the changing role of the People's Liberation Army, human rights, religious and democratic movements, and the concept of responsibility.
Kornberg ; Faust (2005) in this book introduces the China's foreign policy--past and present--and the factors that may influence the country's future policy agenda
Aim and Objective of study The objectives of the research are three fold: To highlight the economic trends in PakistanChina relations To analyze the impact of these trends on the relations of U.S objective To give the recommendations for neutralized relations of Pakistan and China.
CHAPTER 3
RESEARCH METHODOLOGY
The topics of study is historical descriptive therefore the secondary sources have been used for research. The data has been collected from the main library of Government College University, and the library of Kinnaird College.
CHAPTER 4 RESULTS
Pakistan’s relations with China in the next five years and beyond will continue to expand because the relationship is based on principles of peace and prosperity and both shared the 55 years of relationship which built the strong foundation. But America is not satisfied over this Pak-China Relationship and has adopted a different policy to counter it by signing US-India nuclear deal.
DISCUSSION
In May 1998, on Indian nuclear tests, the Indian defense minister and Prime Minister stated China as a long-term security threat. And China supported Pakistan in establishing the strategic balance in South Asia by conducting its own nuclear tests. On August 6, 2004, China and Pakistan conducted their first joint anti-terrorism military exercise named “Friendship 2004,” in Xinjiang. In April 2005, during Premier Wen Jiabao’s visit to Islamabad, the two sides signed a treaty of friendship, cooperation and good neighborly relations as well as an agreement on combating terrorism, separatism and extremism.
Pakistan and China are cooperating closely in the development of the Gwadar deep seaport The Chinese Prime Minister, Zhu Rongji, during his visit to Pakistan in May 2001, urged the two sides to “boost cooperation in agriculture, infrastructure, information technology and other fields under the principle of reciprocity and mutual benefit for achieving common prosperity” The two countries signed a Preferential Trade Arrangement (PTA) in November2003
The main items of Pakistan’s imports from China are machinery and parts, iron and steel manufactures, sugar, chemical materials, chemical elements and medical and pharmaceutical products. The main items of Pakistan’s exports to China are cotton fabrics, cotton yarn, petroleum and its products, fish and its preparations, leather, fruits and vegetables. Unfortunately, mix of Pakistan’s products exported to China is very narrow. Almost around 80% of its exports consist of cotton yarn and fabric.
Pakistan and China instituted a Joint Study Group to negotiate a Free Trade Agreement between the two countries and have simultaneously negotiated an Early Harvest Programme (EHP), which has become operational from January 1, 2006.
Table 4.2: Sector-wise Chinese investment in US $ Sectors 1. Metal Products 2. Transport Equipment (Motorcycles & automobiles) 3.Construction 4.Communications
FDI from China 5,214 151,068
5.Others
76,194
TOTAL
443,763
189,000 22,287
CONCLUSION
The overall geo-strategic environment for regional cooperation is also gradually becoming more favorable for Pak-China relations. Pakistan’s entry into the Shanghai Cooperation Organization as an observer and China’s entry into the South Asian Association for Regional Cooperation (SAARC) as an observer would allow Pakistan-China bilateral economic relations to grow from a regional perspective. . People-to-people contact is increasing at all levels of the two civil societies. All these indicators point to the fact that Pakistan-China relations will remain on the track of constant growth in all areas of mutual benefit.
Today, US presence is everywhere. It is present in Central Asia, South Asia, Japan, Australia, and Saudi Arabia. After the terrorist attack on US Trade Centre in 9/11,2001brought a sea change in international politics. The National Security Strategy of USA, included the doctrine of pre-emptive strikes and the right to station US troops in any part of the world. After finding the militants in South Asian, US is more critical towards the China’s statement of opposing the concept of a uni-polar world and its friendly relations with China. By joining the war against terrorism, Pakistan once again became a US ally and its hard for Pakistan to have friendly relations with both countries simultaneously when they contradict each other in their ideologies. As for as the relations between Pakistan and China are concerned, both countries wish to develop peace and want to focus on developing social and economic welfare with out being pressurize by any external force.
RECOMMENDATIONS
Pakistan’s new democratically elected government should continue to support the US in the War on Terror. Pakistan would adopt a middle-of-the-road foreign policy aimed at accommodating the needs and requirements of both, China and the United States. Under the present circumstances, Pakistan cannot afford to distance itself from any one of them. Since financial constraints dictate that Pakistan resort to a suitable quality-quantity mix in its military weapons, it would continue to rely on the US for quality while depending on China for quantity.
REFERENCES Burke, S.M ; Ziring, L. (1990) Pakistan's Foreign Policy: An Historical Analysis, London: Oxford University Press, pp 154-156. Burke, S.M. (1990) Pakistan’s Foreign Policy: a Historical Analysis. 2nd Eds. Karachi: Oxford University Press, Pg 34-56 Byman , D ; Cliff,R. (1999) China's Arms Sales: Motivations and Implications, United States: Rand Corporation Publication. Bordonaro, F. (March 2, 2006) Sweetness and Light in Pakistan, Asia Times. Curtis, L. (2007) Security Challenges Involving Pakistan and Policy Implications for the Department of Defense http://www.heritage.org/Research/MiddleEast/tst101107a.cfm , Retrieved on May 23, 2009.
Johnston, I ; Alastair ; Ross, R. (2006) New Directions in the Study of China's Foreign Policy, Standford: Stanford University Press
Khan, H.M. (2006). New Heights of Pak-China Ties, http://usa.mediamonitors.net/content/view/full/227754, Retrieved on May 20, 2009.
Khan, B.A. China, Pakistan to Strengthen Defence Ties, Dawn, 17 December, 2004.
Kornberg, J.F ; Faust. J.R. (2005) China in World Politics: Policies, London; Lynne Rienner Publishers, pp .48-73.
ABSTRACT Pakistan and China has realized the missing economic dimension in their strategic relationship although China remained a steadfast friend and helped Pakistan in building several important projects related to defense and economic development. Therefore in last few years, the two governments have convened a number of high-level conferences/forums, inaugurated by their respective leadership in Pakistan and China, to promote economic cooperation thereby exhibiting interest, resolve and patronage to the private sector business community of the two countries. However, United States of America emerged as the only superpower after its victory in Cold War and to extend its influence US brought Japan deeper into the security net by increasing its supply of weapons to Taiwan and started building India as a counterweight to China.
List of Abbreviations GDP US PLA U.N MOU MCC CMC CPECC EHP PTCL FME FTA FDI MFN SAARC NATO USSR ISI USA EU ETIM ECO IAEA TMD NMD BIT
Gross Domestic Product United States People's Liberation Army United Nation Memorandum of Understanding Metallurgical Construction Corporation of China China National Machinery Import and Export Corporation China Petroleum Engineering Construction Corporation Early Harvest Programmed Pakistan Telecommunication Company Limited Free Market Economy Federal Transit Administration Foreign Direct Investment Most favored nation South Asian Association for Regional Cooperation National Antarctic Treaty Organization Union of Soviet Socialist Republics Inter-Services Intelligence United State of America European Union The East Turkistan Islamic Movement Economic Cooperation Organization International Atomic Energy Agency Theatre Missile Defense National Missile Defense Bilateral Investment Treaty
CHAPTER 1 INTRODUCTION
The Statement of the problem
The U.S economic policy toward China and Pakistan has given rise to the perception that the US wants to delay or even block China’s emergence as a major economic power. The friendly relations between China and Pakistan are not been liked by America. Although, the partnership of China and Pakistan for prosperity cannot be ignored after keeping in view, the geographical stature of both countries.
Background of the Problem
Pakistan was the first Islamic country to recognize the People Republic of China on January 4, 1950. Though Pakistan established diplomatic relations with China in 1951 but the actual consolidation of relations had started in the early 1960s, when Pakistan changed its previous stance and supported China’s seating in the UN in 1961. Pakistan on its part sincerely helped China to end the isolation by signing an air-transport agreement and trade agreement and helping China to maintain its contact with different of countries, especially with the Islamic world. But every time US rushed military and economic assistance to India which caused a serious threat to Pakistan.
Rationale
The study is to high light the main trends between the economic relations between Pakistan and China and to analysis the impact of these trends on the realization of US objectives. Moreover, the suggestions and recommendations for the neutralized relation between China and Pakistan has been given.
Hypothesis Formulation The increasing Pakistan-China economic co-operation is an impudent for the realization of American regional objectives. The study would limit a thought and exhaustive analysis of the problem emerged in Pakistan-China relations along with the real perceptual climate of the economic trends in between both countries
CHAPTER 2
LITERATURE REVIEW
Kornberg; Judith; Faust (2005) introduces the China's foreign policy--past and present--and the factors that may influence the country's future policy agenda
Zhang;Yongjin; Austin (2001) has discussed that Power and Responsibility in Chinese Foreign Policy provides a critical insight in to the critical issues in China's international relations - China's regional and global diplomatic and security problems, the changing role of the People's Liberation Army, human rights, religious and democratic movements, and the concept of responsibility
Kanishkan (2005) in their book Uneasy neighbors: India, Pakistan, and US foreign policy, write in details the history of 'Partition', the critical event in the modern history of the subcontinent and the fundamental catalyst for the enduring rivalry between India and Pakistan. It provides a summary description and analysis of the characteristics - demographic, socialcultural, political, economic and military - of the three primary actors that are party to the conflict: the sovereign states of India and Pakistan and the territory of Kashmir.
Yongjin ; Austin (2001) has discussed that Power and Responsibility in Chinese Foreign Policy provides a critical insight in to the critical issues in China's international relations - China's regional and global diplomatic and security problems, the changing role of the People's Liberation Army, human rights, religious and democratic movements, and the concept of responsibility.
Kornberg ; Faust (2005) in this book introduces the China's foreign policy--past and present--and the factors that may influence the country's future policy agenda
Aim and Objective of study The objectives of the research are three fold: To highlight the economic trends in PakistanChina relations To analyze the impact of these trends on the relations of U.S objective To give the recommendations for neutralized relations of Pakistan and China.
CHAPTER 3
RESEARCH METHODOLOGY
The topics of study is historical descriptive therefore the secondary sources have been used for research. The data has been collected from the main library of Government College University, and the library of Kinnaird College.
CHAPTER 4 RESULTS
Pakistan’s relations with China in the next five years and beyond will continue to expand because the relationship is based on principles of peace and prosperity and both shared the 55 years of relationship which built the strong foundation. But America is not satisfied over this Pak-China Relationship and has adopted a different policy to counter it by signing US-India nuclear deal.
DISCUSSION
In May 1998, on Indian nuclear tests, the Indian defense minister and Prime Minister stated China as a long-term security threat. And China supported Pakistan in establishing the strategic balance in South Asia by conducting its own nuclear tests. On August 6, 2004, China and Pakistan conducted their first joint anti-terrorism military exercise named “Friendship 2004,” in Xinjiang. In April 2005, during Premier Wen Jiabao’s visit to Islamabad, the two sides signed a treaty of friendship, cooperation and good neighborly relations as well as an agreement on combating terrorism, separatism and extremism.
Pakistan and China are cooperating closely in the development of the Gwadar deep seaport The Chinese Prime Minister, Zhu Rongji, during his visit to Pakistan in May 2001, urged the two sides to “boost cooperation in agriculture, infrastructure, information technology and other fields under the principle of reciprocity and mutual benefit for achieving common prosperity” The two countries signed a Preferential Trade Arrangement (PTA) in November2003
The main items of Pakistan’s imports from China are machinery and parts, iron and steel manufactures, sugar, chemical materials, chemical elements and medical and pharmaceutical products. The main items of Pakistan’s exports to China are cotton fabrics, cotton yarn, petroleum and its products, fish and its preparations, leather, fruits and vegetables. Unfortunately, mix of Pakistan’s products exported to China is very narrow. Almost around 80% of its exports consist of cotton yarn and fabric.
Pakistan and China instituted a Joint Study Group to negotiate a Free Trade Agreement between the two countries and have simultaneously negotiated an Early Harvest Programme (EHP), which has become operational from January 1, 2006.
Table 4.2: Sector-wise Chinese investment in US $ Sectors 1. Metal Products 2. Transport Equipment (Motorcycles & automobiles) 3.Construction 4.Communications
FDI from China 5,214 151,068
5.Others
76,194
TOTAL
443,763
189,000 22,287
CONCLUSION
The overall geo-strategic environment for regional cooperation is also gradually becoming more favorable for Pak-China relations. Pakistan’s entry into the Shanghai Cooperation Organization as an observer and China’s entry into the South Asian Association for Regional Cooperation (SAARC) as an observer would allow Pakistan-China bilateral economic relations to grow from a regional perspective. . People-to-people contact is increasing at all levels of the two civil societies. All these indicators point to the fact that Pakistan-China relations will remain on the track of constant growth in all areas of mutual benefit.
Today, US presence is everywhere. It is present in Central Asia, South Asia, Japan, Australia, and Saudi Arabia. After the terrorist attack on US Trade Centre in 9/11,2001brought a sea change in international politics. The National Security Strategy of USA, included the doctrine of pre-emptive strikes and the right to station US troops in any part of the world. After finding the militants in South Asian, US is more critical towards the China’s statement of opposing the concept of a uni-polar world and its friendly relations with China. By joining the war against terrorism, Pakistan once again became a US ally and its hard for Pakistan to have friendly relations with both countries simultaneously when they contradict each other in their ideologies. As for as the relations between Pakistan and China are concerned, both countries wish to develop peace and want to focus on developing social and economic welfare with out being pressurize by any external force.
RECOMMENDATIONS
Pakistan’s new democratically elected government should continue to support the US in the War on Terror. Pakistan would adopt a middle-of-the-road foreign policy aimed at accommodating the needs and requirements of both, China and the United States. Under the present circumstances, Pakistan cannot afford to distance itself from any one of them. Since financial constraints dictate that Pakistan resort to a suitable quality-quantity mix in its military weapons, it would continue to rely on the US for quality while depending on China for quantity.
REFERENCES Burke, S.M ; Ziring, L. (1990) Pakistan's Foreign Policy: An Historical Analysis, London: Oxford University Press, pp 154-156. Burke, S.M. (1990) Pakistan’s Foreign Policy: a Historical Analysis. 2nd Eds. Karachi: Oxford University Press, Pg 34-56 Byman , D ; Cliff,R. (1999) China's Arms Sales: Motivations and Implications, United States: Rand Corporation Publication. Bordonaro, F. (March 2, 2006) Sweetness and Light in Pakistan, Asia Times. Curtis, L. (2007) Security Challenges Involving Pakistan and Policy Implications for the Department of Defense http://www.heritage.org/Research/MiddleEast/tst101107a.cfm , Retrieved on May 23, 2009.
Johnston, I ; Alastair ; Ross, R. (2006) New Directions in the Study of China's Foreign Policy, Standford: Stanford University Press
Khan, H.M. (2006). New Heights of Pak-China Ties, http://usa.mediamonitors.net/content/view/full/227754, Retrieved on May 20, 2009.
Khan, B.A. China, Pakistan to Strengthen Defence Ties, Dawn, 17 December, 2004.
Kornberg, J.F ; Faust. J.R. (2005) China in World Politics: Policies, London; Lynne Rienner Publishers, pp .48-73.
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