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Hu Jintao's visit reassures Pakistan

Nirupama Subramanian

Beijing's new alliances not at the expense of ties with Islamabad, say analysts

ISLAMABAD: The visit of Chinese President Hu Jintao to Pakistan has served to reinforce a long-standing friendship and to convey that Beijing's new alliances are not at the expense of ties with Islamabad, analysts said.

During his visit, Mr. Hu said China would continue to view Pakistan from a "strategic and long-term perspective" and expressed readiness to "raise the strategic partnership" between the two countries to "new levels." He also spoke about continuing co-operation in nuclear energy.

"What President Hu Jintao has managed to convey is that unlike the United States, in the restructuring and realignment of Asian geopolitics, China will not exclude Pakistan," said Ayesha Siddiqua, who writes on defence and strategic issues.

The visit had provided the necessary reassurance to Pakistan that its ties with China were unique and would continue to remain that way, Ms. Siddiqua said.

On a different plane

Mr. Hu arrived here from India, and while Pakistan is conscious of the massive improvement in ties between the two countries, commentators shrugged it off saying Pakistan-China relations worked on a completely different plane from Beijing's new ties with New Delhi.

"The Pakistan visit is completely different from the India visit. In his speeches, President Hu Jintao has spoken about the historical aspect of the relations between the two countries and thanked Pakistan for its support in the international field. And he has also talked about passing on this friendship to the coming generations. China's economic partnership with India has its own importance, but the two countries still have many unresolved issues, such as the border dispute. Pakistan and China have no outstanding issues," said Tanvir Ahmed Khan, former Foreign Secretary, in a programme on Pakistan TV.

Red-carpet welcome

Mr. Hu arrived to the sort of red-carpet welcome that Pakistan reserves only for royalty from Saudi Arabia aside from visiting Chinese leaders, according to observers. People were out on the streets in strength to welcome the guest.

The two cities that the Chinese President visited — Islamabad and Lahore — truly wore a "bridal" look, as one newspaper said.

On Friday, Pakistan and China signed 18 agreements, the most important of which are the Free Trade Area agreement and a five-year economic co-operation plan. Also significant is a memorandum of understanding for "long-term" collaboration in the development of Air-borne Warning and Control Systems.

Analysts said it was of little consequence that there was no announcement of a new civilian nuclear partnership agreement for Chinese assistance in building additional nuclear reactors in Pakistan — it has already built Chashma -I and is helping to build Chashma-II.

Mr. Hu's statement that nuclear energy co-operation would "continue" is by itself being viewed as holding enormous significance.

"What Hu Jintao actually means is the two countries have a co-operation in the nuclear field, and it is not going to vanish. That is sufficient indication that the strategic relationship is going to continue," said Ms. Siddiqua.

Others agreed. "When the Chinese President says we will continue the co-operation, it has to be continued towards something. If there is one country that Pakistan trusts blindly, it is China. A statement like that coming from the top Chinese leadership will be taken seriously," said Farhan Bokhari, the Pakistan-based correspondent of the Financial Times, among the first to disclose last year that the two countries were negotiating to set up more reactors in Pakistan.

According to him, rather than announce a comprehensive package for nuclear energy co-operation with Pakistan that may attract "a lot of international attention", it was more likely that China was "looking at a piece-by-piece" deal.

By far the most significant agreement during Mr. Hu's visit is the FTA, said to have the potential to treble bilateral trade to $15 billion over the next five years. But local industry greeted it with fear.

"We are not very upbeat about the FTA. We were already fearful of China because it was already causing a lot of problems for local manufacturers. Now with lower tariffs and freer access for Chinese goods in Pakistani markets, our problems will be compounded," said Tariq Sadiq, a former president of the Islamabad Chamber of Commerce and Industry.

Bilateral trade

At present, the volume of bilateral trade is about $4.5 billion, but is heavily tilted in favour of China. The main item of export from Pakistan to China is textiles, but even in this, the two are competitors.

But as Pakistan's manufacturing base is extremely limited, the FTA may prove immensely beneficial to consumers, a fact that Mr. Sadiq was quick to acknowledge.

According to him, if the FTA could attract Chinese investment — the agreement includes investment — to set up joint ventures here, that would be a definite benefit for Pakistan.

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