If your country is desperate to stave off economic collapse, there is probably no better place to visit, and no better friend to have, than China right now. With $2 trillion in foreign exchange reserves, China is sheltered from the worst of the financial storm, so much so that many are looking at it to play a part in hauling the global economy into calmer waters.
Pakistan President Asif Ali Zardari begins a trip to China on Tuesday on what is being billed as his first official visit abroad – his earlier trip to the United States has been presented as one to attend the U.N. General Assembly.
Pakistan has long seen China as its most reliable friend, in contrast to the United States, whose support has waxed and waned in line with U.S. strategic interests in the region. And China in turn has long been content to provide quiet support, avoiding the brashness of the United States while building a relationship with an ally that could be used as a counterweight to India. So there is nothing unusual about a Pakistani leader making China his first choice for a bilateral trip.
What is unusual is the context. Because of the financial crisis, China’s economic clout has soared relative to the United States. It has recently begun to flex its economic muscles to exercise political power, as this Financial Times story about China using its forex reserves to convince Costa Rica to sever ties with Taiwan suggests.
On its part, Pakistan is keen to show its independence from the United States. With tensions running high over U.S. missile strikes and one reported ground raid by U.S. troops across the border from Afghanistan into Pakistani territory, no Pakistani leader right now can afford to be seen as too pro-American. Pakistan Army chief, General Ashfaq Kayani, has already made a trip to China to discuss defence cooperation. And though Pakistan’s economy may be teetering on the brink of collapse, Zardari has in the past ruled out seeking a bail-out from the International Monetary Fund – identified by public opinion in Pakistan as being too much of an “American” institution.
And that makes China’s role as a potential saviour all the more important. The question that needs to be asked is whether China, with its new found economic power, will extract a higher price for its support than it has done in the past, and how far Zardari will go to pay for that support. In an interview with Xinhua, Zardari said he had a long-term economic cooperation plan, and will “bring my own concept to China”.
China has its own reasons to want to ensure the stability of Pakistan, not just because of its unspoken rivalry with India, but also because it cannot afford to let Islamist militancy seep from Pakistan into neighbouring Xinjiang, the restive far-western region where in August it said it faced a ”life and death struggle” against terrorism, following a series of attacks blamed on Muslim separatists.
So will Zardari’s visit to China intensify a relationship that will maintain global economic stability by helping to prevent another national economy from sliding off the edge, while bolstering the battle against Islamist militancy? Or are there hints in there of a Faustian pact? The devil, as usual, will be in the details.
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they should have spend more money on its economy than on supporting terrorism. pak politicians stole money and plundered the economy. spreading red herrings.
sadly what i see is that their currency & market will nose dive.. making the situation worse. the taliban people will rise more. this will adversely affect neighbouring India and China (xin juang province).
- Posted by Shin'i Kirapakistan should invest heavily in I.T sector and take advantage of its young population in education ,training etc …. we should stop relying on foreign loans we should have better ties with Iran and middle east rather then depend on usa which is only using pakistan for its dirty laundry. its time for us to have better ties with Russia too because usa backed policies are failing in pakistan.
- Posted by khaliq chohanThw world needs to keep the hands clean of Pakistan. Every loan for one pretext or another is plundered and poor people of Pakistan are left paying the interest for the rest of heir lifes. Right now the hue and cry is regarding the ‘interest payments’ due on loans of last 20 years.
Strangely enough Pakistan politians have more properties out of Pakistan then in Pakistan. Mr. Zardari and his late wife (BB) own over $10B worth of property just in Dubai alone, including the 10 acre estate on the beach from where she left to return to Pakistan. There are 10 highrise buildings in Dubai which include the hotel where Zardari had meeings with Nawaz Sharif…. Similar properties are spread in London, France and USA. Same is the case for Mr. Sharif and all members of his family who owns properties in London and Dubai. Just image between these top wig parties every time they are out of power, they take off to their safe havens created out of these plundering.
One solution is left. Let investors come and build the dams and wind farms to deliver electric for dead industry of Pakistan under 20 years BOT. Look at what investors did for telecom sector.
Next loan donor’s like any investment company can run public infrastructure projects themselves to protect their investment. There are all laws on paper in Pakistan, but the ‘yes-man’ establishment infrastructure is willing to go into shady deals with anyone offering them a cut by-passing every law in the book.
The nation and youth in Pakistan (65% population) is helpless, but still have the street power to break the chains imposed by politicians. Would you beleive the despair in heart of every Pakistani when a political system was high-jacked to elect Zardari. Shame is on PPP jaila’s who talk of democracy, but did not have the courage to stand up seeing a wrong happan right in front of their eyes. It is their own fault and they deserve to be ruled by a 19 year prince Bilawal. You really are still slaves! No guts to say anything when you see a wrong happan…
No, the nation of Pakistan is not ordained to be slaves of the polictical masters. It’s time they hit he rock bottom as a failed state to rise out of the ashes!
- Posted by Tariq J QureshiGood luck..
WELL BEST OF LUCK PAKISTAN MY WISH WITH U TO REVIEW FORM THIS CRISES AND MAKE A GOOD ECONOMY….
- Posted by AnuragIndeed Pakistan is in deep trouble let see what can he do to revive form this situation.
In my opinion Pakistan still have some chance if he take some loan form IMF but this is matter for shame for any country to take loan for this purpose but i think this is no time for Pakistan to see about self-esteem. This time Pakistan need to maintain its stability just like India did in 1991.
But the main question will arise after that
what Pakistan government want?
What he dream for the people for his country? are they still try to feeding militant in Line of control to again start disturbance in India or rather than take systemic steps for his development and improve his economy?
I think this time Pakistan really need food rather than weapon and Kashmir .
If he improve his economy and make healthy relation with India then Kashmir issue will become matter of cooperation not controversy
This is my opinion Any comments ?
- Posted by Anuraghttp://www.nytimes.com/2008/10/19/world/ asia/19zardari.html?ref=asia
No bailout by china. Now what you say about your friend?
- Posted by CarlosCarlos
The evil british and usa slaved african and robbed chinese wealth for centuries and now brutally killing civilians in Iraq, Afghanistan,Iran to plunder oil and us army are raping south korean and japanese women. do you so called civilized west show any mercy to thses people? you shameless west are much more brutal than nazi!
- Posted by anti-usaNot only Pakistan, countries do not require any help from any third country but can achieve their goals, if it stop supporting of any hat or extreme activities, it does not mean or refer any kind of state sponsored activities, but elimination should be from all sections of the society, starting from individual, group, orgazinations, departments etc. Govt’s should know that, if they encouraging any individual or Group for any extreme action against any third party may stand one day as third party. Encouraging extremism costing Life, Property, Economy etc…
- Posted by A M RSpeaking of bilateral relationship, Pak and China is founding an exreme good example in Asia and in the globe. If we look at Europe and North America, it’s so strage to find that Asia countries are against each other. It’s the legacy from British evade. Asian countries’s reunion under China’s power will bring peace and properous to peoples there.
- Posted by hemoIf pakistan wishes to tie its future to china so be it. but unless this beautiful country learns to stand on its own two feet it cannot hope to prosper. A crutch is still a crutch be it be of gold.
This country has since its creation has outscored over india on all development parameters till 1980’s but after that it has slowly spiralled down to the state it is in now.
Pakistan has been let down by its leaders - military, political and religious. The brave people of pakistan are making a valiant effort to come out of this mess. They have chosen a democratic government, have raised voice against terrorism and are being vocal about what is wrong and how it can be corrected.
I just hope that the citizens realize that they cannot go around looking for dole outs. Nobody want to be friends with a weaker or poorer nation and if they profess to be friends - be sure to read the fine print. a friendship between a strong and weak nation is flawed in its very concept. The stronger nation would always extract a price for its help. Look what America has done to pakistan. Just a few years back America was the bestest friend of pakistan. after using pakistan against russia, they abandoned it. then came back after a few years with threat to blow the country to stone age. is this how true friends act.
But this is what you get whenever there is a partnership of unequals. The stronger always knows that it can arm twist the weaker nation. This jubilation about chinese friendship is all good but pakistan should realize that this is again a partnership between unequals. There is nothing to stop china from extracting its pound of flesh when the time comes.
Pakistan stand on your feet and take charge of your own destiny. You are too good and too proud a people to go around with a begging bowl in hand.
BEST OF LUCK
- Posted by hrothgarIrrespective of the fact that China has 2 trillion $ in forex reserves, is the fsatest growing economy in the world, has the 2nd largets army in the world, at the end of the day China is still a closed society. A society where the government dominates and regulates everything. Just look at the baby food crisis. 56000 chinese babies suffering and the government discouraging parents and lawyers from filing suits against the company.
In china nobody (citizen or outsider) has the correct picture of the things that are going on in China. Even the fact that their fx reserves are 2 trillion or not is something nobody can claim with any certainity.
If somebody wishes to find a friend in such a country then BEST OF LUCK.
The only thing that can be said for certain about China is that it plans to make Asia and Africa its playground. Form here it would then take on the might of Europe and America. And since Europe and USA has already stuck their foot in their arse and shot themselves in the head - Economic meltdown, the chinese have been saved even this trouble.
When the dust of the current crisis settles down not even china would be secure. The chinese economy is export driven and FII financed. With a global slowdown these two activities are bound to be adversely affected leaving china with a red nose. Still china is far more secure that others.
- Posted by hrothgarAs it has always been the case this recent visit to the brotherly country china will also not go in vain……China and Pakistan friendship has withered every storm and I hope with every passing storm this friendship will become even more stronger…..
- Posted by KS‘Pak chin Dosti’ as they say in Pakistan, has defintaley taken a blow since the early 90s. There have been many important steps taken including defence and economic co-operation, but this is nothing unique to Pakistan. China relation with many african and south east asian countries is much deeper and more significant than that of Pakistan. Brothers they arnt. China spent $13 billion cleaning up a lake, $40 billion was spent on the little on chongqing and they scrapped tens of billions of dollars worth of loans of african countries, and pakistan is facing difficulty getting 2 billion
- Posted by umair usman