PAKISTAN STUDIES ASSIGNMENT

Submitted to:
MA’AM SABAHAT JALEEL

Topic:
CHINA-INDIA ECONOMIC RELATIONS; IMPLICATIONS
FOR PAKISTAN.
Group Members:
FAHAD BIN HUSSAIN (17-ME-13)
M. USMAN BIN AHMED (17-ME-16)
FARHAN (17-ME-67)
M. AWAIS (17-ME-79)
USAMA RAZA(17-ME-88)

Mechanical 2k17
Section A.
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INDIA-CHINA ECONOMIC RELATIONS;

IMPLICATIONS FOR PAKISTAN

Abstract:-
After the cold war, both the countries reviewed their foreign policy and entered a bilateral
economic relation which was not limited to just trade but also extended to different energy and
development projects. These improving relations between the two giants caused a concern for
the already China dependent nation; Pakistan. The concern for this country was well justified as
the improving relations of China with Pakistan’s arch enemy would ultimately mean China’s
attention being diverted to much more stable and stronger nation which would not only provide
China with a route to Central Asian countries but will also improve China’s diplomatic and
economic standing in the world. Even though China has been supporting Pakistan in most of its
national and international problems, a much stable partner like India will mean much more
trade and much more projects which would make China rethink about their partnership with a
much more unstable and weak partner. Even though Pakistan has made a number of attempts to
keep China’s interest away from India’s obvious allure, it would be a matter of time before
China shifts their attention to India if Pakistan’s current domestic economic, political and
security conditions do not improve in the coming decade or so. Therefore, India-China economic
relations can pave way for a much stronger alliance which would cause serious geo-strategic
and geo-political setback for Pakistan.

Introduction:-
Since the end of WW2, a number of unknowns have been added to the system of the New
World Order in order to maintain the balance in the new era. Even though these points were
mostly made by the men of this world, they soon transcended the limitations of borders and
certain groups. And the end of the infamous cold war paved way to a culture of security and
economic interdependence. The Third World countries were the main focus of this trend and
among them China and India are the two growing powers and the main actors of this plot
amongst the six in total.

It is interesting to note that the idea of unipolar world came hand in hand with the theology
of interdependence and just after two decades of its arrival, countries find themselves interlocked
into deep security interdependence giving way to an imminent danger to their peace and
economy. The best example of this situation is the Pakistan-India-China trilateral relationship.

On one hand China is fully capable of taking care of its own borders but it depends on the
other states for the smooth running and growth of its economy. While on the other hand India is
interdependent on other nations for both; economy and security. India’s economy is aided by
China and USA while for security it looks towards Russia, France and the USA.

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 CHINA AS AN ECONOMIC POWER
As Napoleon Bonaparte once said, "When China awakes, the whole world will shake", a
vision came true after a long time of his precious words. It’s a fact that China's economy is a
merger of the developing economy with the transition economy based on industrialization policy
and a completely new infrastructure of “Socialist Market Economy”. [1]

China is currently the 2nd largest economic power after United States of America, and it is
expected it can become the largest economic power within the next five to ten years. China is
now recognized as a dominant and major global economic power. From 1979 to 2012, China’s
GDP has grown at an average annual rate of nearly 10%. It is estimated that during this time
period, 500 million people in China have been raised out of extreme poverty.2

Now discussing what china did during the period of 1979-2018; which caused the uplift of
China’s economy to such a great level. Looking at the trends, China has well-adopted to raise
capital investment it did by the aid of local and foreign savings; and a big development of ideas
led by Chinese economists that contributed to huge industrial revolution and hence a large
productivity growth. A number of Chinese leaders like Deng Xiaoping and its famous slogan
"Get rich!”. Personal enrichment (individualism) and consumption (supported by neo-Keynesian
policies in 1997) became the leading policies of china towards reaching the greatest economic
power. Since 1979, China switched to foreign trade and investment and implemented free
markets reforms, which led to the development of “Socialist Market Economy”. China being the
world’s current largest economic power is also the world’s biggest manufacturer, merchandise
trader, and owner of foreign reserves. China’s growth became prompt in the 1990s. In 2006
China’s exports grew to a staggering $974billion in 2006 from $78billion in 1993. [2][3]

Key Factors of Development in China's Economy:-

Agriculture sector was the most dominant contributor of china’s economy. Now studying in
detail the factors contributing to the development of Chinese economic power:-

1. Agricultural Sector:
Today, the economy of china is based largely on agriculture. The conditions were not very
favorable for china to enhance agriculture; for instance limited natural resources, limited per
capita arable and fertile land, and water resources even less than world’s average. Moreover, the
weak level of industrialization, low-value added agriculture products, worse environmental
conditions and ecological safety problems were causing a serious threat and imposing a huge
barrier in Chinese agricultural development.

But it was just a matter of introduction of economic reforms in China’s agricultural sector,
which make way to a high income growth and China showed up as a major global economic
growth achiever. According to a recent study 18% of the world’s cereal grains, 29% of the
world’s meat and 50% of the world’s vegetables is produced by china alone. This unexpected
success makes China the world’s largest agricultural economy, and it ranks as the largest global
producer of pork, wheat, rice, tea, cotton, and fish. By using very limited space, China produces

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 around 20% of the world’s food, which is a miracle since the initial setbacks faced in 1960s and
1970 by the Chinese agricultural sector. [4]

2. Industrial performance of China:

Before the economic uplift, china was lagging behind even the developing countries in
industrialization sector. It was due to the enormous efforts of Chinese economists, who made
enormous industrial revolution, by making industrial capitalism advanced. Chinese rigorous
pursuit to be advanced technologically and the interest of foreign firms to China’s industrial and
manufacturing success led to the “stage skipping” process, through which immature Chinese
industrial structure gained at once an enormous importance in world’s economy. It also made
china the world’s leading manufacturer and caused high productivity growth. China produced
maximum exports to Europe, the America, and many other countries.

In 2013, Chinese manufacturing contributed by thirty five percent on the GDP, this
participation was superior to that of the United States. Manufacturing has a central role in
China’s economy than it has for the United States and Japan. In 2013, China’s gross value added
manufacturing was equivalent to 28.9% of GDP; however it reached 12.1% in the United States
and 18.7% in Japan. [5]

3. Employment:
China thoroughly focuses on the prosperity of its natives. For instance, China is an ideal
country to provide social and legal security to internal migrants. It provides a lot of employment
facilities even to the working class and relatively poor citizens, living in urban areas. Since the
population of China is enormous, China worked really hard to solve the problems of
unemployment of its citizens.

In 2003,7443.2 lac people were employed in China, of which 2563.9 lac in urban areas
(35%) and 487 930 000 in rural areas (66%) (5) .From 1990 to 2003, China had an annual
increase of 7.45 million jobs”. [6]

4. Financial sector:
This factor plays a vital role of Chinese economic development. After 1978, Chinese
introduced considerable reforms in order to develop financial sector. Banking sector is the bearer
of these reforms with a significant development of capital market after China’s accession to
World Trade Organization, which led to a marked success of China in trading sector. In 1994, the
Chinese banking sector set the roots to establishment of the Development Bank, the Export–
Import Bank of China, and the Agricultural Development Bank of China, in order to control the
lending policies of the Big Four, which are the four largest international accounting and
professional services firms. PricewaterhouseCoopers, Ernst & Young, Deloitte Touche Tohmatsu
and KPMG make up the Big Four.

During the recent years, Chinese largely focused on the modernization of financial and
banking system. Due to these efforts, Chinese non-trade loans fell from 17.4% at the end of 2003
to 1.8% in mid-2009. The sharp decline of nonperforming loans was associated with an equally

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 remarkable improvement in banks' capital ratios. Since 2005, China has reinforced the legal and
institutional foundation of the capital markets and removed major barriers to their development.
The altered law on companies and securities came into force in 2006 and the Law on Securities
Investment Funds in 2004.

The success of the new texts was improved by the application of the reformed bankruptcy
law, which were implemented in June 2007, and the amended law on insurance, which was
implemented in October 2009. [7]

5. Trade:
International trade and investment give ease to the economic growth as they cause a lot of
increased job opportunities, high funding of firms and capital investment, high income and
decreased prices. Countries who are members of the international economy take relief from
economic firmness and better living standards.

According to trade statistics, recently, China has gradually earned a main role in
international trade due to its significance for traditional and largest trading associates such as the
United States, India and the Euro area.

On December 2011, China became a part of the World Trade Organization, largely due to
its quick trade expansion and intense structural change its economy has continued to grow. After
this addition, the Chinese government started to reduce tariffs, prolonged trade rights and relaxed
its administration in order to appeal foreign direct investment.

The value of China’s merchandise exports increased from $14 billion in 1979 to $23
trillion in 2014 with an annual evolution of 18.0% from 1990 to 2014, whilst importation of
merchandise rose from $18 billion to about $2.0 trillion with an annual progress of 16.6% in the
same period. [8]

INDIA AS AN ECONOMIC POWER [9][10][11]

The Indian economy is a developing economy. Now, India is known as world’s sixth largest
economy and 3rd largest by purchasing power.

Major components for India’s growing economy are:

1. Huge working population.

2. Greater literacy rate.
3. Increase of consumer market.
4. Focus on home based manufacturing

Service sector is considered the largest sector of Indian economy. Agricultural sector has
contributed in Indian economy much higher than world’s average (6.4%). Contribution of the

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industry and Services sector is lower than world’s average 30%. Share of each sector in GDP of
India is as follows:

Agricultural sector: 15.4%

Industrial sector: 23%

Services sector: 61.5%.

As the rate the Indian economy is growing, we can say that India is the future’s one of the largest
economies in the world.

TOOLS FOR GROWING INDIAN ECONOMY:

1. Doubling-up the farmers income:

Farmers make up nearly half of the country’s labor force.The think tank has proposed enhancing
agricultural production by introducing new technologies and moving from low- to high-value
actions such as horticulture, dairying, poultry, piggery, fisheries, and forestry. [9][10][11]

2. Jobs, jobs, jobs

The NITI Aayog pegs India’s joblessness rate at between 5% and 8% currently. India is hovering
to attract a large number of manufacturing jobs as companies moved their base from China due
to high wages and an ageing manpower there. With its large workforce and competitive wages,
India would be a natural home for these companies.

3. Better infrastructure:

Indian government has been aggressively focused on infrastructure—both physical and digital.
By setting up a separate safety department, and the appointment of a national safety officer, India
believes to reduce railway fatalities by a significant amount by 2019. In aviation, they want to
lower the ATF cost giving chance for more Indians to fly.

4. Digital India:

India has worked hard to digitize its every division. Indian government has also made many
programs which offer their youth digital teachings courses. It has also added digital teaching
courses in its curricula.

5. Become a global soft power:

Since from some years; Indian government has tried hard to project itself as a regional soft
power. India has made many friendly contacts with other countries and this helped it much to
grow its international market.

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 6. Skills and welfare:

According to some report, By 2020, India is hovering to become the world’s youngest country
with an average age of 29 years; by 2030, it will have the world’s largest working-age population
of 962 million people.

However, India has also worked hard to increase the quality of school education. By conducting
a national-level survey, the government is able to understand the quality of education and come
up with s remedial measures, and also give more independence to higher-education institutes.

Importance of India-China Economic Relation [12]

The year 2017 was a fierce one for India-China Ties. China’s lack of support for India’s
nuclear supplier’s Group (NSG) membership bid sullied relations. However, at the end of year
2017 there were some positive steps taken on the part of both government officials to improve
the diplomatic relations a bit. In 2018 the agitation of diplomatic activities between these two
nations continued, they not only focused on alleviating security issues, But also taking into
account the importance of lessening the Economical hindrances in the development of strong
diplomatic relations.

During the recently concluded session of India-China joint cooperation on different fields,
the two countries tried to find new ways to enhance development of bilateral trade and
investment cooperation, trying their level best to reduce the trade imbalance and started
negotiations on Free Trade Agreement (FTA). The government officials from both countries
participated in the fifth iteration of bilateral Strategic Economic dialogue discusses the further
ways to enhance the economic engagement and to clear any obstacles coming in the way in
doing so. All these steps taken on part of china and India in development of the economic
relations was a testament to the fact that despite the security and geopolitical concerns, there is
recognition in both countries that there is mutual benefit for both countries in making India
China economic cooperation more gigantic one.

Imbalance and protectionism:

According to the data from the Indian government, India-China bilateral trade has grown
from $38.02 billion USD to $71.45 billons USD over the past decade. There were jumps in
2011-2012 and 2014-2015, mainly due to increase in Chinese exports to India, but the trade was
almost stationary in recent years.

From New Delhi’s point of view, a significant trade imbalance in favor of china, the market
access issues and security considerations are the main factors which have kept the bilateral trade
limited. A trade deficit of $51.11 billion USD with china is real concern for India because due to
this Indian products are unable to compete with Chinese manufactured goods. Chinese exports to
India are mainly manufactured goods like machinery and power equipment while Indian exports
comprises mainly of raw materials such as iron ore and cotton. Indian manufacturing still has a

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long way to go before India would be able to compete with Chinese manufactured exports to
India.

However, Beijing’s protectionist policies hinder the ability of the Indian companies to
make to the Chinese markets. But the New Delhi on other hand is encouraging the China to open
up its market to Indian IT, pharmaceutical industry, and agri-products as well as to increased
Chinese investments in India to cut down their trade deficits. In pharmaceutical industry India is
specialized and holds 20% of Global generic medication production, Indian companies find it
difficult to enter Chinese markets, due to lack of market access and overly restrictive regulatory
procedures. But any pay back move on part of India to restrict Chinese imports will be
destructive for India. Because the Indian manufacturing mainly depends on the cheap Chinese
Imports which are in the form of Electronic and IT components.

Bilateral Investment:

China and India have had a number of issues related the economic investment in the past,
but these countries have taken ample steps to eliminate these hurdles in recent years. In 2014,
China announced a huge investment of twenty billion USD in India over the next half decade,
such as in industrial park projects in different parts of the country. This investment was expected
to be scale up the India’s manufacturing capabilities and also help India to reduce its trade deficit
with China. But Land Acquisition Challenges were the source of hindrance.

China’s foreign direct investment (FDI) into India between April 2000 and June 2017 stood
at $1.67 billion USD which is only 0.49% of total FDI inflows into India over the same period.
However the India’s dream of greater Chinese Investment has yielded some results.60% Chinese
FDI into India from April 2000 to September 2015 went into automobile manufacturing and
smartphone manufacturing company Xiaomi’s five manufacturing plants in India.

In 2017 alone, Chinese companies such as Alibaba, Fosun, Baidu, and Tencent put $5.2
billion USD into 30 Indian start-ups. Chinese group of companies Alibaba and its affiliates alone
have invested about $1.7 billion USD in Indian star-ups such as paytm and BigBasket.

Explanation for Stronger Economic Ties: - [13]

Strengthening the India-China economic relationship can be beneficial for both nations.
China’s current demography and its economic policies show that it offers a great potential as a
future market for Indian goods and services as well as a source of greater investments.

According to Chinese figures, in 2017, the bilateral trade reached an all-time high of
84.44Billion USD. In addition Chinese companies have shown keen interest in investing in India,
Pledging about $85 billion USD in projects at a trade event last year. Overall, a stronger India-
China economic relationship can be mutually beneficial for both the countries, keeping in mind
the desires of both the countries to reach specific aims. In this respect, investment by China in
Indian firms provides them with much needed capital to uplift its capabilities while china gains
greater technological skills.

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 India and China are two of largest, fastest -growing energy consuming countries of the
world. India imports 75% of its oil needs, while China imports 33% of its oil, their combined
demand has helped derive oil prices to record highs, prompting both nations to lock down the
sources of energy round the world China’s search for energy as prompted it to sign deals with
Africa- it has agreements with Sudan, Nigeria, Angolia and other nations- to Asian countries like
Myanmar and European countries like Russia.China and India agreed to a landmark energy
cooperation deal to prevent them from bidding against each other for energy resources. The two
countries realized that by aggressively bidding against each other for the same energy resources,
they were raising the prices of the oil for each other. It’s cheaper for them to divide resources
and cooperate.

The two nations have a longstanding territorial dispute in the Himalayas that led to a border
war in 1962. Negotiations over the 2000 mile border are under progress. Among the disputed
areas India says China is illegally occupying Indian Territory in the area of contention of
Kashmir. China has claimed the rights to land in the north east state of Arunachal Pradesh.

India is worry of China’s longstanding relationship with its rival Pakistan, including Chinese
assistance for Pakistan’s nuclear weapons program and China’s role in a project to upgrade a
Pakistani deep sea port at Gwadar. The nuclear threats from China and Pakistan are combined,
since china has built up Pakistan’s nuclear and conventional capabilities. China has also
expanded its security relations with other nations around the India including Myanmar and
Bangladesh which are threat for India. So Beijing and New Delhi are taking steps in order to
minimize the security issues. These two countries are also planning their first ever combined
naval exercises.

But the challenges such as trade imbalance, market access issues, and protectionism need to
be handled properly, more importantly geopolitical circumstances will continue to pit India
against China, which ca impact economic opportunities for India.

Implications for Pakistan [14] [15]

While having a glance on the improving Sino-Indian relationships, there are two groups
that come forth – the optimist and the opponents. The optimists are of the mind that the
improving bilateral relation between the two giant powers will bring forth many positive
possibilities for the other countries in the region, the opponents think otherwise. The opponents
being realists have pointed that the growing relations between the two countries will bring forth
much more trouble from the NATO and will become the cause of much more instability in the
region and other countries will feel threatened by their combine growth.

The one country that will have the most number of implications is Pakistan whose life long
enemy will befriend their life long allies. Pakistan’s relationship with China has been upheld by
four basic pillars – Diplomatic Support, Energy corridor, Strategic partnership and Military co-
operation. Improving Sino-Indian relations will damage all four of these pillars causing a huge
amount of damage to Pak-Sino relations.

Diplomatic Support:-

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 With improving relations between India and China, it’s almost obvious that the diplomatic
support for Pakistan will decrease in the international forum where China would not need the
support of Pakistan for its cause when it will have a much bigger and stronger ally to support its
claims in front of the west. Not only this but since both countries are a growing power, they can
unilaterally stand up to the western powers as another block of complete power and authority
leaving Pakistan far behind in its shadows. This will place Pakistan in a much weaker position
against India in most of its quarrels and also will make Pakistan more vulnerable to western
criticism over terrorism and other charges. Just like how China pulled back its support for
Pakistan when the country was being placed on the watch list by FATF and didn’t take any
hardline actions against India when it violated Pakistan’s border. [16]

Energy Corridor:-

The pinnacle of Pak-Sino relationship is the energy corridor that is being made by China
through Pakistan which will give Pakistan a huge boost in its economy, but the improving
relations with India will prove otherwise. Given China and India become close economic
partners, China will surely shift its energy corridor plan from Pakistan to India which is a much
more stable country in terms of local security and political stability. India will also provide China
with much more labor and land and better developed infrastructure that will severely cut the cost
for China. And up to this date a number of CPEC projects have been dropped by the Pakistani
government due to its inability of repaying the debts it will cause which have caused a huge
setback for the Chinese investors already and provided a much more suitable area for
development, the investors will surely divert their attention to the new paradise compared to the
terrorism inflicted Pakistan, causing Pakistan to lose a huge source of economic boom and
economic reversibility. [17]

Military Cooperation:-

The military cooperation between the two countries has been the most prominent aspect of
their friendship. From equipment like tank and fighter jets, china has aided Pakistan even in the
testing of their nuclear program. But all this did not help china much and all of the research was
profitable to Pakistan. But becoming close allies with India will bring china hand in hand with
the 4th biggest military in the world that is already raising its military strength on its own. This
will not just allow India and china to start developing more deadly weapons but will also allow
both counties to start joint ventures and conduct joint researches which will not favor just one
country but both the countries. Not only this close military relation will make the two countries
as the undisputed authority in the world with worlds 3rd and 4th biggest army close allies. This
will put Pakistan at a tough spot because Pakistan had always looked towards china whenever
relations between Pakistan and India got to worse. Having such close relations with India will
obviously put china at a tough spot which will be reluctant to provide open support to Pakistan
just how it did recently when India invaded Pakistan’s airspace and war became imminent.

China-India economic relations: A solution to Kashmir dispute?

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 The Kashmir conflict which started in 1947 with the partition of British India almost led to
a nuclear war between India and Pakistan but even after more than 70 years of struggle the issue
still remains unresolved because of the lack of real efforts made by the rest of the world in
resolving the Kashmir issue and because of the attitude of India itself. As we are aware that the
economic relations between China and India are improving so the question is whether China can
use its economic influence to solve the Kashmir issue, whether it is even interested in solving
this conflict and whether the economic relation and cooperation between India and China could
assist Pakistan in solving its conflicts with India, particularly Kashmir issue? Some of the events
which show that China is interested in solving Kashmir issue are as follows;

● In May 2017, an article was published by the Global Times, an official media channel of
China, according to which China now has an absolute enthusiasm by saying ‘vested
interest’, in resolving the Kashmir conflict between India and Pakistan by playing the role
of an arbitrator. China has the ability to play a much stronger and bigger role in resolving
the conflicts through arbitration because of its massive economic influence which it can
use to deal with other nations of the region. This was the first time that an official media
channel of China indicated the interest of Beijing in resolving Kashmir conflict.[18]
● China’s intention of resolving Kashmir conflict is also evident from the fact that its
Foreign Ministry spokesperson, Geng Shuang told the media that a constructive role will
be played by China in order to resolve Kashmir issue through negotiations and
consultations. When talking to The Globe Post, a prominent teacher of International
Relations Department at IUST located in south Kashmir, Dr.Shazana Andrabi told that
China may not directly play a role in resolving Kashmir issue but can do the politics by
using its economic influence which means that China can use its economic influence to
increase its political influence which it can use to resolve Kashmir conflict.[19]
● In June 2017, China by using its economic influence invited both India and Pakistan to
join the Shanghai Cooperation Organization i.e. SCO and various other economic forums
through which they tried to reduce the tensions between two countries using an economic
forum. China also used its economic relationship with both countries to reduce the
tensions between India and Pakistan by inviting the military persons of these two
countries to “Peace Mission 2018”, the counter-terror exercises.[20]
● In December 2016, China said that it would invite other countries to be a part of China-
Pakistan Economic Corridor (CPEC) after consulting Pakistan and after a week
Commander, Southern Command, invited India to join CPEC and asked for the
cooperation between neighboring countries. [21]

So these were some of the events which have shown that China have used its economic
influence in order to reduce the tensions between India and Pakistan but another question which
arises is that why is China so keen to reduce the tensions between these two countries?
Some of its reasons are as follows;

● India not only has a conflict with Pakistan over Kashmir but there is also a conflict
between India and China regarding border. Today’s situation is such that Jammu
Kashmir and Ladakh are forcefully occupied by India which both Pakistan and China
have rejected; Aksai Chin is in the occupation of China which has been rejected by India

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 whereas Azad Kashmir, Hunza, Nagar and Gilgit Baltistan are occupied by Pakistan
which has been rejected by India. Therefore all three countries are having border
disputes in Kashmir therefore it resolving the Kashmir issue is in the interest of all
China, Pakistan and India in order to reduce the border tensions because China wants to
become rather is an economic power of the world therefore wants peace with all its
neighbors and leave the border tensions aside.[22]
● China has invested billions of dollars in China Pakistan Economic Corridor (CPEC)
which also passes through the places which India claims therefore by establishing peace
between India and Pakistan, China wants to ensure that CPEC isn’t disturbed by Indo-
Pak tensions and ensure that CPEC is a success.[23]
● Due to the trade threats from US to China, the tensions between them are increasing
therefore China is looking for a new big market for its products which is India, the third
largest economy in terms of purchasing power parity, just in China’s neighborhood. At
the same time China wants to make CPEC and One Belt, One Road project a success
therefore China wants to ease the tensions between India and Pakistan to gain economic
advantage.[24]

Therefore from this we can conclude that China wants to establish peace and resolve the
conflicts between India and Pakistan because this is also in its economic interest since mutual
trust will be improved by the cooperation and peace in the region. In the past, China has shown
its capability to resolve border tensions through negotiations peacefully. The evidence of this is
Sino-Pak Boundary agreement signed on 2ndMarch, 1963 according to which Pakistan gave up
its claim of Aksai Chin territory whereas China gave Hunza to Pakistan. This shows that China
has the potential to resolve such matters peacefully. China can develop its relations with India
through economic cooperation only because it also has border tensions with India. Once its
economic relations are developed, it can also try to solve other disputes through negotiations in
order to bring peace and stability in the region to promote trade and improve economic condition
of the region. Therefore Pakistan and China could use the improvement in China-India economic
relations as a way of solving their disputes with India.

Conclusion:-
Even though close relations between the countries have ample benefits for the region, it
will also pave way for a much bigger threat of war and bloodshed because it is human nature to
become the strongest and show the world your strength and not only this but this venture will
also put Pakistan in a difficult spot with one its closest ally now allies with its rivals. This will
not only put Pakistan in a weak position globally but also regionally and will cause its economy
to fall rapidly eventually submitting to India and other bigger powers for support and will also
eventually put Pakistan at the mercy of India eventually.

REFRENCES:-
[1]: Shang-Jin Wei, Zhuan Xie, Xiaobo Zhang. 2017. From “Made in China” to “Innovated
in China”: Necessity, Prospect, and Challenges. Journal of Economic Perspectives 31:1, 49-70.

Page 12 of 15
 .[2]: Mediterranean Journal of Social Sciences MCSER Publishing, Rome-Italy. Key
Factors of China’s Economic Emergence Hanaa Abdelaty Hasan Esmail (College of Business
Administration, Jazan University, KSA. Theba Academy, Cairo, Egypt)

Nedra Nouredeen Jomaa Shili (College of Business Administration, Jazan University,

KSA. PS2D Laboratory, Tunis El Manar)

[3] State Statistical Bureau of the People's Republic of China and data given in Jingji
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[4] Carter, C. A. 2011. China's agriculture: achievements and challenges. ARE Update
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[5] United Nations, UNdata, available at http://data.un.org.

[5] Zhiyun Zhao and Chaofeng ( 2007), “An Empirical Study of China’s High-Tech
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[6] http://www.undp.org.bd, http://www.china.org.cn.

[7] Douglas. J. Elliott and Kai Yuan,(2013), “The Chinese Financial System: An
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[7] Lin Wei, Arnold Chao(1983), China's Economic Reforms". University of Pennsylvania
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[8] United Nations conference on Trade and development.

[8] Branstetter , Lee, and Nicholas R. Lardy (2008) , “China’s Embrace of Globalization.”
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[8] Whalley. J. and Hamilton. C. (1996), “The Trading System after the Uruguay Round”.
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[9]. http://www.iccrindia.net/economy/

[10] http://statisticstimes.com/economy/sectorwise-gdp-contribution-of-india.php

[11] https://qz.com/india/972551/indias-10-step-plan-to-transform-its-economy-and-
quality-of-life-by-2020/

[12] April 21,2018 by Kashyap Arora and Rimjhim Saxena posted in Politics and
Economics, China, Economics, India, India-China Post Doklam, Trade

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 [13] February 27,2006, Backgrounder by Esther Pan, posted in New York times

[14] Sino-Indian relations: implications for Pakistan ; A research paper by Amna Yusaf
Khokhar presented at the seminar on “Pakistan-China Relations – 2011

[15] DEVELOPMENTS IN SINO-INDIAN RELATIONS: IMPLICATIONS FOR

SOUTH ASIA AND PAKISTAN by :- Asifa Jahangir, Rashida Anis; ISSN: 2307-4000 (Online),
2308-7846 (Print) http://www.escijournals.net/JSAS

[16] https://thediplomat.com/2018/02/why-did-china-pull-support-for-pakistan-at-the-
financial-action-task-force/

[17] https://timesofislamabad.com/23-Jul-2018/several-cpec-projects-in-pakistan-face-
setback-report

[18] Dawn, May 03, 2017 “Beijing has ‘vested interest’ in mediating between Pakistan,
India” URL: https://www.dawn.com/news/1330772

[19] Globe Post, December 26, 2018, “Can China Play a Mediating Role in Solving the
Kashmir Dispute?” by Gowhar Geelani https://theglobepost.com/2018/12/26/china-kashmir-
dispute/

[20]Economictimes,Jul12,2018,URL:https://economictimes.indiatimes.com/news/defence/china-
denies-shift-in-stand-on-kashmir-issue/articleshow/58498861

[21] Tribune, December 24, 2016,URL: https://tribune.com.pk/story/1273696/china-like-

involve- countries-cpec-consulting-Pakistan-Beijing/

[22] Express Tribune, February 5, 2014, URL: https://tribune.com.pk/story/667511/the-

solution-to-kashmir-lies-in-beijing/

[23]Forbes,Jun22,2018,URL:https://www.forbes.com/sites/panosmourdoukoutas/2018/06/22/chi
na-wants-india-to-make-peace-with-pakistan-it-wont-work/#41cf8fac4a4a

[24]ExpressTribune, February 5, 2014, URL: https://tribune.com.pk/story/667511/the-

solution-to-kashmir-lies-in-beijing/

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