PAKISTAN AND CHINA DIPLOMATIC RELATIONS - Ministry of Foreign Affairs (2024)

Pakistan and China established diplomatic relations on 21 May 1951.

This relationship has built on the strength of its successive achievements, and has become formidable with each passing day and year. The leadership of both countries is committed to taking this relationship forward.

To understand the depth of this unique relationship, here is a glimpse of the milestones reached over the years:

Milestones / Key Developments:

Pakistan and China enjoy close and friendly relations since the establishment of diplomatic relations in May 1951. Pakistan was one of the first countries that recognized the People’s Republic of China. Over the years, the relationship has blossomed into an “All-Weather Strategic Cooperative Partnership”. Pakistan considers China as one of its closest friend and partner and China considers Pakistan as its “Iron Brother”.

The bilateral relationship between the two neighboring countries is characterized by feelings of mutual trust, respect and goodwill towards each other. There is a regular exchange of visits at the highest level between the two countries. The strategic cooperation between Pakistan and China has grown over the past several decades.

Economically, China is Pakistan’s largest trading partner and a major investor, especially in infrastructure and energy sector. During 2018, bilateral trade between the two countries reached US$ 18 billion. With the official launch of China Pakistan Economic Corridor (CPEC), the bilateral relationship has been elevated to a higher level. CPEC is a flagship project of Chinese President Xi Jinping’s initiative of “One Road and One Belt”. It aims at enhancing connectivity and improving infrastructure between Pakistan and China. Several projects are being implemented under CPEC, for enhancement of infrastructure and generation of energy. People-to-people contacts are an important aspect of the bilateral relationship. The year of 2015 was celebrated as the Year of Friendly Exchanges between Pakistan and China and several high profile events were organized including seminars, exchange of visits and cultural events to highlight people-to-people interactions.

High Level Visits:

High Level visits are the hallmark of China-Pakistan bilateral relations.

President’s Visit to China (16-17 March 2020):

At the invitation of H.E. Xi Jinping, President of the People’s Republic of China, H.E. Dr. Arif Alvi, President of the Islamic Republic of Pakistan, visited China from 16-17 March 2020. The President was accompanied by the Foreign Minister, Minister for Planning Development and Special Initiatives, and senior officials. During the visit, the President met with President Xi Jinping. Premier Li Keqiang and Chairman National People’s Congress, Li Zhanshu, also met President Dr. Arif Alvi.

His maiden visit to Beijing was a singular expression of Pakistan’s solidarity with its “iron brother.” The visit was undertaken at a time while China was engaged in a massive national struggle to contain the Covid-19. Leaders of the two countries took the opportunity to exchange views on bilateral, regional and international issues of mutual interest. Both leaders witnessed signing of various Agreements/MoUs during the visit. At the conclusion of the visit, a Joint statement was also issued.

Prime Minister’s Visit to China (7-9 October 2019):

Prime Minister Imran Khan visited China from 7-9 October 2019 at the invitation of Chinese Premier Li Keqiang. During the visit, the Prime Minister met with President Xi Jinping, Premier Li Keqiang and Chairman NPC Li Zhanshu. The Prime Minister was a Chief Guest at the Beijing International Horticulture Expo-2019 along-with Premier Li Keqiang. In addition, the Prime Minister also met with CEOs/Heads of leading Chinese enterprises. Both sides signed a number of MoUs/Agreements. It was Prime Minister Imran Khan’s third visit to China since assuming office in August 2018.

Chinese Vice President’s Visit to Pakistan (26-28 May 2019):

Chinese Vice President Wang Qishan visited Pakistan from 26-28 May 2019. He called on the President and held bilateral talks with the Prime Minister. During the visit, the Nishan-e-Pakistan was conferred upon the Vice President in a special investiture ceremony. Moreover, several MoUs and projects were signed and inaugurated. The Vice President also visited Lahore, where he met with Chief Minister Punjab and Governor Punjab. The Vice President also toured Pakistan’s cultural sites, including Taxila Museum, Lahore Fort and Badshahi Mosque.

Prime Minister’s Visit to China (25-28 April 2019):

The Prime Minister visited China from 25-28 April 2019 to participate in the 2^nd Belt and Road Forum for International Cooperation. He delivered a speech at the Opening Ceremony of BRF on 26 April and participated in the Leaders Roundtable on 27 April. During the visit, the Prime Minister held meetings with President Xi Jinping and Premier Li Keqiang in which the entire range of bilateral relationship, including implementation of Phase-II of CPEC, was discussed. Both sides reaffirmed their resolve to further strengthen the All-Weather Strategic Cooperative Partnership. Both sides also discussed important regional and international issues, including peace and reconciliation in Afghanistan and peace and stability in South Asia, and agreed to deepen cooperation at the multilateral fora. The Prime Minister attended a Pakistan Business and Investment Forum attended by leading businessmen of Pakistan and China. 14 B2B agreements were also signed. He also attended the opening ceremony of the Beijing International Horticulture Exhibition. During the visit, 7 new MoUs were signed on a range of bilateral issues, including the Second Phase of Pakistan-China FTA, Completion of Preliminary Design of ML-1, Rashakai SEZ Joint Venture, Socio-Economic Cooperation, Economic and Technical Cooperation and Cooperation in Marine Sciences.

Prime Minister’s Visit to China (2-5 November 2018):

Prime Minister Imran Khan had paid his first official visit to China on 2-5 November 2018. In Beijing, he had met with President Xi Jinping, Premier Li Keqiang, Chairman Standing Committee of the National People’s Congress (NPC), Li Zhanshu and Vice President Wang Qishan. He had also met with Minister of International Department of the CPC Central Committee, Song Tao, Chairman of Asian Infrastructure Investment Bank (AIIB) and had interactions with leading corporate leaders of China. In Shanghai, the Prime Minister had attended the opening ceremony of the 1st China International Import Expo (CIIE).

The two sides reached a number of important understandings and long-term consensus, reiterated strong commitment to bilateral relations and the leaders developed good rapport for future cooperation. During the visit, two sides had signed fifteen (15) agreements/MoUs on a range of bilateral issues, including transfer of sentenced persons, poverty reduction, agriculture, socio-economic development, and cooperation in combating illicit traffic in drugs.

Other Visits:

Prime Minister Nawaz Sharif paid an official visit to Zhengzhou from 14-15 December 2015, to participate in the SCO Summit. During the visit, he met with Premier Li Keqiang. President Mamnoon Hussain visited Wuzhen from 16-18 December 2015, to participate in the 2nd World Internet Conference. During the visit he met with President Xi Jinping on 16 December.

On the invitation of Chinese leadership, President Mamnoon Hussain paid an official visit to China from 1-4 September, 2015, to participate in the commemoration ceremony of the 70^th Anniversary of China’s victory in World War II. During the visit, delegation level talks were held with President Xi Jinping and Vice Premier Zhang Gaoli.

Chinese President Xi Jinping paid a historic State visit to Pakistan from 20-21 April 2015. During the visit, it was agreed to intensify cooperation under the China-Pakistan Economic Corridor. China pledged to invest US$46 billion in Pakistan’s energy and infrastructure sectors in Pakistan. President Xi was also awarded Pakistan’s highest civil award of ‘Nishan-e- Pakistan’ during the visit.

On the invitation of Chinese President Xi Jinping, Prime Minister Muhammad Nawaz Sharif paid an official visit to Beijing from 7-8 November 2014 to participate in the “Dialogue on Strengthening Connectivity Partnership” during the 22nd APEC Summit. Prime Minister Sharif endorsed President Xi’s vision on regional connectivity and infrastructure development, stressing that Asia would need to strengthen both to excel in international arena.

President Mamnoon Hussain visited Shanghai from 19-22 May 2014, to attend the 4th Summit of the Conference on Interaction and Confidence Building Measures in Asia (CICA). Pakistan’s participation in the CICA Summit at the highest political level sealed its endorsem*nt of the vision of Asian collective security based on cooperation and dialogue.

President Mamnoon Hussain paid an official visit to China from 18-21 February 2014. The second Joint Coordination Committee (JCC) meeting on Economic Corridor Project (ECP) was held on the sidelines of the President’s visit.

Prime Minister Muhammad Nawaz Sharif paid an official visit to China from 3-8 July 2013. This was Prime Minister’s first overseas visit after assuming office in June 2013. During the visit, the two sides concluded the MoU on China-Pakistan Economic Corridor.

Premier Li Keqiang paid an official visit to Pakistan from 22-23 May 2013. It was the first visit of Premier Li Keqiang abroad after assuming office.

Other High Level Visits:

From Pakistan side, the other recent high-level exchanges include the meeting of Foreign Minister Shah Mahmood Qureshi with State Councillor and Minister of Foreign Affairs, Wang Yi, in August 2019 and on the sidelines of the SCO Council of Foreign Ministers in May 2019. Earlier, the Foreign Minister had met with Wang Yi when he visited Beijing in March 2019 for the first session of Foreign Ministers’ Strategic Dialogue and later when he was in Beijing for the 2^nd Belt and Road Forum in April 2019. The Foreign Minister also participated in Political Parties’ Dialogue between PTI and CPC and Political Parties Forum on CPEC. He also met Vice President Wang Qishan and Minister for IDCPC, Mr. Song Tao. Foreign Minister had earlier visited Beijing on 25 December 2018.

Former Foreign Secretary visited China on 8-11 April 2019 to formally launch the JWG on International Cooperation. The Foreign Secretary also met with Vice Minister Le Yucheng and Mr. Yang Jiechi, Director Foreign Affairs Commission of CPC. Bilateral ties between the two countries; Prime Minister’s visit to China for 2nd Belt and Road Forum (25-28 April 2019); current regional situation; and cooperation at multilateral fora were discussed during the visit.

The Deputy Chairman Senate, Saleem Mandviwalla, visited China from 17-19 April 2019 and held meetings with Shanghai Media Group, Chinese People’s Political Consultative Conference Shanghai Committee, Shanghai Federation of Industry and Commerce, East China Central Factory of Bright Dairy. Previously, Chairman Senate visited China from 16-20 August 2018. Former President Mamnoon Hussain had visited China to attend the SCO Heads of State Summit in Qingdao in June 2018. Former Prime Minister Shahid Khaqan Abbasi participated in the Boao Forum for Asia held on 8-11 April 2018.

From Chinese side, State Councilor and Foreign Minister Wang Yi visited Pakistan in September 2019 to attend the Third China-Afghanistan-Pakistan Foreign Ministers Dialogue in Islamabad. Vice Chairman CMC Gen. Xu Qiliang visited Pakistan recently.

Chinese Vice Foreign Minister Kong Xuanyou visited Pakistan on 6 March 2019. He discussed the regional situation with the Foreign Secretary and also called on Prime Minister Imran Khan, Foreign Minister Shah Mahmood Qureshi and Chief of the Army Staff. Vice Foreign Minister Kong Xuanyou had earlier visited Pakistan to attend the first round of reconstituted Political Consultations between Pakistan and China on 10 December 2018.

The other high level visits from China included those of Mr. Gao Yunlong, Vice-Chairman Chinese People’s Political Consultative Conference (CPPCC) (13-16 February, 2019); visit of Mr. Zhang Chunxian, Vice Chairman of Standing Committee of National People’s Congress (NPC) in November 2018; visit of Mr. Song Tao, Minister for International Department of Communist Party of China (CPC) on 13-16 October; State Councillor and Foreign Minister Wang Yi’s visit (6-9 September); and visit of General Zhang Youxia, Vice Chairman of Central Military Commission of China in May 2018.

Consultation Mechanisms:

Pakistan and China have several Consultations mechanisms including Strategic Dialogue at Foreign Ministers’ level, Political Consultations at Foreign Secretary/Vice-Minister level; consultations on South Asia, Arms Control, Counter-terrorism; Human Rights; Peacekeeping; Maritime Dialogue; Border management consultations, and Consular affairs.

Defence Cooperation:

Pakistan-China Defence collaboration forms the backbone of the relationship. The cooperation spans high-level military exchanges, structured defence and security talks, joint exercises, training of personnel in each other’s institutions, joint defence production and defence trade. The militaries of the two countries have institutionalized three tiers of bilateral consultations to enable close cooperation at all levels. There is an extensive range of cooperation, including joint ventures, for the production of military equipment, aircraft, submarines and tanks. China is also the recipient of the largest number of military training officials from Pakistan.

Economic & Trade Relations:

China is currently Pakistan’s largest single trading partner; while Pakistan is China’s second largest trading partner in South Asia. Major imports from China include machinery and mechanical appliances, metals, chemical products, mineral ores, plastic scrap and transport equipment. Main exports include cotton yarn, cotton fabric, rice, leather and fish products.

In recent years, the bilateral trade volume between China and Pakistan has increased rapidly with stable commodity structure. However, despite robust investment from China, bilateral trade remains anemic. China’s imports from Pakistan reflect a downward trend whereas China’s exports to Pakistan are on an upward trajectory. Bilateral trade, which stood at US$ 1.3 billion in 2002, reached US$ 19.08 billion in 2018. Imports from China stood at US$ 12.7 billion and exports from Pakistan to China at US$ 1.85 billion in 2019.

To enhance bilateral trade volume, the two countries signed the 2nd Phase of China Pakistan Free Trade Agreement (CPFTA) during the Prime Minister’s visit in April 2019. CPFTA-II became operational from 1st January 2020. It would ensure provision of level-playing field in terms of concessions vis-à-vis other competitors; robust safeguard measures for protection of domestic industry; improved tariff reduction modality; higher liberalized import value from China and lesser import value for Pakistan and attracting FDI into SEZs.

Investment:

According to the State Bank of Pakistan Annual Report 2018, during FY 2018, China was the biggest investor in Pakistan with an investment of US$ 1.591 billion out of a total of US$ 2.537 billion which amounts to 63% of total FDI. With the initiation of CPEC, there has been an upsurge in investment flows into Pakistan especially in infrastructure and energy sectors.

China Pakistan Economic Corridor (CPEC):

Pakistan and China have constituted a Joint Cooperation Committee (JCC) to implement CPEC. The JCC is co-chaired by Pakistan’s Federal Minister for Planning, Development and Reform and Vice-Chairman of China’s National Development and Reform Commission. It is supported by 8 Joint Working Groups covering the various areas of cooperation as including: (i) Energy, (ii) Transport Infrastructure, (iii) Gwadar, (iv) industrial cooperation, (v) Planning & Finance, (vi) Security, (vii) Socio-Economic Development, and (viii) International Cooperation. Two new JWGs have been added. The ninth and tenth JWGs on Science & Technology and Agriculture have been established in March 2020 during the visit of the President to China.

Nine JCC meetings have been held to date, with the last one taking place on 5 November, 2019 in Islamabad. Next meeting of the JCC is scheduled to be held in China in 2020.

Current Status of CPEC Projects:

The detailed progress of CPEC Projects may be seen at http://cpec.gov.pk/. The highlights achievements are as follows;

Energy Cooperation:

• As of September 2019, 12 power projects have either been completed or were under construction. The total installed capacity of these projects was 7,240 MW with total investment of about 12.4 US billion dollars. In addition, 9 projects stand at early stage (some are constructed by phases, with a total installed capacity of 6390 MW).
• As of fiscal year 2018-19, COD CPEC energy projects had generated $250 million in tax revenue for Pakistan and provided over 10,000 jobs. They now accounted for 14.5% of available energy in the NTDC grid.
• The JCC welcomed significant positive momentum in resolving the issue of delayed tariff payments and agreed to promote the introduction of advanced metering infrastructure (AMI) technology in Pakistan.
• It was also agreed to continue consultations and finalize the Pakistan-China Development Plan for oil and gas sector. Pakistan side proposed these projects for consideration by the Chinese side, i.e. (a) Finalization of feasibility study on South North Gas Pipeline; (b) Up-gradation of Pakistan Refinery Ltd. Karachi; (c) Coal-to-Liquid Engineering Plant based in Thar Coal at Thar Sindh, and (d) Thar Block-VI for Coal gasification to Fertilizer projects.

Transportation and Infrastructure Cooperation:

• The 392 kilometer-long Multan-Sukkur section of the Peshawar-Karachi Motorway was completed ahead of schedule and inaugurated at the JCC.
• Work on upgrading the Karakoram Highway’s Havelian-Thakot section was also on track for timely completion. Its Havelian-Mansehra section would be opened to traffic in the near term.
• In Gwadar, work on the redesigned Eastbay Expressway and the New Gwadar International Airport was proceeding according to timelines.
• Various issues regarding Orange Line Mass Transit project in Lahore had been resolved (the project is to be operational from March 2020).
• Both sides agreed to expedite the design review and feasibility approval of the Main Line (ML)-I Peshawar-Karachi railway project and agreed to constitute financing committees. Possibility of RMB financing would also be explored.
• It was agreed that Pakistan would submit financing request for Karachi Circular Railway (KCR) for further deliberation. Both sides also agreed to consider Quetta Mass-transit and greater Peshawar Mass-transit project in the next JWG Meeting after approval of their PC-1s.

Gwadar:

• Gwadar was considered as an entry point for transshipment to Afghanistan.
• Gwadar Smart Port City Master Plan was endorsed by JCC.
• The 300 MW coal-fired power plant was launched, and its preparatory work would be expedited.
• China would dispatch expert’s teams for the early implementation of a 1.2 million gallons per day (MGD) desalination plant.
• Detailed planning was being undertaken for the further development of Gwadar’s Free Zone which had already been granted considerable concessions.
• A medical college and nursing school would be considered for Phase I of the Gwadar Development Authority (GDA) hospital project.

Industrial Cooperation:

• The JCC reviewed progress on three SEZ’s namely Rashakai, Dhabeji, and Allama Iqbal. The importance for supporting infrastructure, targeted incentives for investors and a “one-window” facility was reaffirmed.
• The first round of business diagnosis for Pakistani’s textiles sector was undertaken and its findings on enhancing industrial productivity and overall competitiveness were presented. It was agreed to expand and deepen the business-diagnosis mechanism to other industrial subsectors.
• It was agreed to activate the Pakistan-China Business Council to give full play to the private sectors of both countries. The Council would comprise senior executives from leading enterprises.
• The JCC agreed to support revitalization of Pakistan Steel Mills (PSM)
• A comprehensive incentives package for investors was in the final stages of preparation by Pakistan and would be unveiled at the earliest.

Socioeconomic Development and Agriculture:

• Out of 17 fast-track socioeconomic development projects, 12 were ready for commencement, while the remaining five projects would also be expedited.
• Special emphasis was placed on early launch of Pakistan-China joint agricultural technology laboratory.
• Both sides would also enhance cooperation in agricultural areas including deep processing technology, fisheries, and disease-free zones.
• Both sides also agreed to accelerate the procedures for: (a) Balochistan Solar Power Lighting Equipment; (b) Drinking Water Equipment Supply (Solar powered pumps in KP and Water filtration plants in AJK); (c) Smart Classroom Project for Higher Education; (d) Provision of Medical Equipment and Material and (e) Pakistan Vocational School’s Equipment Up-grading and Renovation Project.