Reuters Blogs

Pakistan: Now or Never?

Perspectives on Pakistan

17:01 October 13th, 2008

China, Pakistan and the financial crisis

Posted by: Myra MacDonald
Tags: Pakistan: Now or Never, , , , , , , ,

File photo of rally with Pakistan national flagIf 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.

At a brokerage house in Shanghai/Ali SongWhat 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”. 

File photo of an elderly Uigur leaving a mosque in Xinjiang/Nir EliasChina 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.

   

53 comments so far

Pakistani Punjabis are selling baluchistan resources to greedy insatiable chinese in return baluchis are offered begging bowls. We baluchis will liberate from the clutches of punjabi-chinese vultures .

LONG LIVE BALUCHISTAN

- Posted by Sameera Baluch

The only common interest between Pakistan and China - is India ! Both Pakistan & China want to contain India and see an opportunity to use each other’s strengths to do that. Between them (Pak and China) there is no love gained or lost for any other reason…

Pakistan’s primary pre-occupation is contaning/ destroying India rather than work for the welfare of its people. It is a failed State - which is destined to disintegrate - leading to four parts getting merged with India, China, Afganistan and Iran. That is the final solution for this wretched country !

- Posted by Ats

What would be the cost of maintaining 20 Divisions in Tibet??

Give some bombs to Pakistan and some AK-56 to the terrorists. Then there is no need to keep more than one divison in Lhasa to beat up the Lamas.

That is China Pakistan deep rooted and historical friendship!!. What a Joke??

- Posted by MacAurther

Nobody can defame China without evidences!

- Posted by Ray

Why is Pakistan after China??

the solution to their woes lies in Delhi. Zardary should try to connect the economy with Inda and Pakistan will be out of mess…

Even US knows it but No one is interested in real stability in the region. It appers they want Pakistanies to keep playing “Bombers”.. That is also in the intrests of China ..

So my dear Bangladeshi and Pakistani friends .. keeps eating greenbacks and keep making bombs… instead of making factories..

It is a deliberate choices of your 9th century mindset. Only you can help yourselves not China. china is helping Counties in this region to counterbalance and reduce their defence spending.. That is all.

- Posted by MacMillan

Why Curse Chian and Pakistan? It is British who must be cursed to have created Pakistan for their long term selish interests. Initially it were Brits then followed by Americans. Fundamentalism and terrorism in Pakistan is creation of USA and the West. All of them including Pakistan are paying back for theirs sins with accrued interest??
For India it simply is a matter of bad luck that the country is surrounded by every thing failed except for Bhutan which friendly to India. There are failed economies, failed political systems, failed states etc One of the major reasons is their belligerent attitudes to India. No body in the world including US and China can ever help these societies till they remain unnecessarily hostle and belligerent towards India. Everthing they have including their economies is dependent on and connected with India including that of Tibet. Unless economies of these states get closely linked with India, China or USA can not do any thing much even if trillions of dollars aid is provided to them.

Pakistani economy is unnecessarily suffering because it is not linked to Indian economy. Same is the case with Bangladesh, Nepal and Myanmar.

Integrate this mammoth and this would be the largest stbalisation factor in the region. It may save millions of tax payers money to the US and western societies.

That is the only solution.

- Posted by Rani

You know all said and done, China is a one country in the world that has grown economically…from nothing to a military and economic power.

Yes, they may hang disidents, but they hang corrupt ministers too. May be in US people responsible for economic misery should face the life jail term if not death for drowning us from the wealthist nation to a borrower nation! Some countries may hate them, but their own people don’t!

We are the leaders in technology, but our oil lobby giants and auto industry didn’t let public transportation develop as they wanted to retain their markets. Look at London, Japan, China, Singapore and other nations with public transport systems.
Look at the french who have 80% electric power from Nuclear energy, another example to follow.

Look at the healthcare system of UK, France and other European countries Vs payed health care in USA. I think it is time we have a nationalized health care system in USA, instead of yielding to AMA and Pharma companies that have created barriers of entry to hold prices up.

US is great, so lets make it greatest, by having public transportation systems, nationalized health care and decent social security system.

- Posted by Tariq J Qureshi

I don’t understand why so many people object two neighboring countries be closest allies. China has always supported the people of Pakistan, not one dictator, or party.

As a Pakistani, I can tell you guys most Pakistanis do agree that India is naturally the one country that can be Pakistan’s closest ally in these changing times. We not only share borders but cultures too. Somehow the perception is different on the other side. Probably because they don’t watch almost non-existent Lollywood.

- Posted by Faisal

eric says, “China is the MOST unethical, immoral country in this century. It has money and power but no morality, no self-respect.”

yeah, china’s immoral, all right… especially compared to that paragon of virtue, the US.

when’s the last time china went halfway round the world to kill a million people in a project to achieve “benevolent global hegemony”?

- Posted by wadosy

[...] China, Pakistan and the financial crisis [...]

- Posted by RoboXpress.com | Ufone launches BlackBerry Bold smart phone

All you haters can go take a hike. It will not change the fact China is growing stronger by the day and the West is declining relatively. Nor will it change the deep friendship between these two countries. Enjoy your self-riotousness, and your pointless arguments on what countries around the world “should” and “shouldn’t” do.

- Posted by yongke

Pakistan needs 2 decide what it wants - science, industry and development or more mullahs and madrassas. Their choice and their future. China is only going exploit them more for it’s own gain and secret ambitions. Look at last 10-15 years and at China’s activity and China’s friends. Pakistan only can help itself!

- Posted by emma

No friends is 1000x better than a friend like China. China is the MOST unethical, immoral country in this century. It has money and power but no morality, no self-respect. China could be a great civilized country but that’s not where they are today. China prefers dictators and hides from democracies. To get fake self-respect, China needs some slaves and is exploiting Pakistan. China likes the military in Pakistan because there is no Chinese word for democracy. Pakistan definitely has no bright future with the Chinese or Saudis. If Pakistan needs a bright tomorrow, it must stay away from China, Saudi and work hard. Pakistan has a long way to go.

- Posted by Eric

China has been helping Pakistan to counter India but now even China can’t go to far in helping Pakistan because they know that Pakistan is not trust worthy.

- Posted by Ali Khan

Burma, another friend of China ;) Why all these failed countries surround China. How some of these failed countries have no food or money but nukes? People in these failed countries are suffering, dying for some dubious Chinese ambition? Not fair!! Everyone, every country should live free, with dignity, with self-respect, as equals and and NOT be trapped or exploited for money.

- Posted by Dan

In my opinion Pakistan and Afghanistan should get together and form a joint country. Kick out American and Indian influence.
China should help Pakistan in this hour of needs.
No one can keep India in checks like Pakistan, Valuable ally for China.

- Posted by HAN

Why China always gets such scary countries as friends?? China’s best friends are Pakistan, N Korea, Iran, Libya Syria, Sudan, Somalia and so on. Is there a common pattern here? Is it cuz no one else would go close to these countries and hence China can suck their natural resources cheaply? Is it cuz China can’t get good friends and it’s better to have failed, loser friends than no friends? Or is it cuz like minds seek each other? China is completely responsible for what’s happening in these countries today. It’s time that China take some responsibility, act responsibly, not kill pets, babies or jail people for googling.

- Posted by Dan

Long Live Pak-China friendship!!

- Posted by Umair

Pakistan should seek support from world in this difficult time.

- Posted by TRCB

You know, I know and everybody knows Zardari is going to china just for Nuclear deal..China has nothing to worry about Islamist militancy spreadign from pakistan because it is a country where govt can kill any protestor or militancy as soon as it sparks with out making a slightest sound in media or public. No body knows what happens inside China. China wanting stability in Pak is a crap which I dont buy.. China has been supplying Pak with weapons and will continue to do so just to make it unstable with India.

- Posted by Om

Post Your Comment

*
To prove you're a person (not a spam script), type the security word shown in the picture. Click on the picture to hear an audio file of the word.
Click to hear an audio file of the anti-spam word

House Rules:
  • We moderate all comments and will publish everything that advances the post directly or with relevant tangential information
  • We try not to publish comments that we think are offensive or appear to pass you off as another person, and we will be conservative if comments may be considered libelous information.