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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
as a joint venture of both countries. Expert supposed that Shaheen missile series is the
modification of Chinese Imports (Afridi, 2010). In 2008, China vows to help Pakistan in
civil nuclear technology by building and helping in the Khusab Nuclear Program
providing technology to Pakistan for better maintained of civil nuclear plants. In same
year F-22 (advance model of Chinese Navy frigate), comes into service with the Pakistan
Navy (Defense Forum, 2009). A spokesman for the Chinese foreign ministry said its plan
to provide Pakistan with two new reactors was in line with international obligations
(British Broadcasting Corporation 2010).
3. Conclusion
The increasing volume of trade and investment shows the strengthening of bilateral
economic and military relations. The continuous exchanges at the highest level search for
new avenues of cooperation and signing of agreements work as the life blood in the body
of relationship. Former President Musharraf and President Zardari gave a new
momentum to the existing ties and this cooperation is continued in administration of
Zardari. In his official first visit to China, energy, telecom, agriculture, food and food
processing facilities, real estate, new materials and infrastructure development as some of
the areas where Chinese investors could concentrate. The economic cooperation between
the two countries strengthened their strategic partnership. USA formally launched
objection on the Chinese proposal to build two new nuclear reactors in Pakistan. But
China continues supporting Pakistan to strengthen its internal and external security
measures.
The security threats in the two of its western provinces of Pakistan Khyber
Pakhtoonkhwa and Balocistan especially and other areas of Pakistan generally are the
main hurdle in attracting Chinese private sector investment. The rise of Taliban in
Pakistan by the extremist elements disillusioned Chinese government. The Chinese paid
heavy price for investing in Balocistan. Even three Chinese engineers were assassinated
in 2004, in an act of terrorism in Gwadar. Two more Chinese engineers lost their life in
an act of terrorism in the Hub area of Balcoistan province. But they did not hand over and
continued the process of mutual cooperation. The reason is certainly the Chinese national
interest which lies in strong ties with Pakistan. Pakistan is looking for more FDI to create
job opportunities for its people. The Chinese companies involved in manufacturing sector
are performing only assembling function in Pakistan. They are importing spare parts from
China to enjoy a tax break. Such screwdriver industries in auto mobile, home appliance
etc. are not creating jobs but using their investment for opening Pakistan market. There is
a need to use Chinese investment for expanding manufacturing base and ensuring
technology transfers, so that such investment could be equally beneficial for Pakistan
also. The Chinese domestic market offers attractive opportunities for Pakistani exporters,
in the area of agricultural items like fruits, fishery and leather products. Implementation
of zero tariffs on Pak-China trade, Pakistani fruits would be at advantage terms of quality
and price compared to those grown in Southern China. This study concludes that the
Pakistan needed a reliable economic and strategic ally to improve its developing
economy as a source of high technology and FDI, while China needs a good economic
partner ready to sere as a strategic partner by helping its access to Indian Ocean and the
Gulf countries to increase its political and economical area of influence. It is a sort of
mutual interdependence between two countries keeping them engages continuously and
Pakistan and China is the joint cornerstone of stability in South Asia.
COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 163
JANUARY 2011
VOL 2, NO 9