volume 2, number 6 newsletterissi.org.pk/wp-content/uploads/2018/07/newsletter_june_2018.pdf ·...

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Volume 2, Number 6

THE CHINA-PAKISTAN STUDY CENTRE (CPSC)The Institute of Strategic Studies Islamabad (ISSI)

IN THIS ISSUE1 Pakistan Tests 1st Metro Train in Lahore

Under CPEC

2 Chinese General Calls on COAS, Lauds Pak

Army’s Security for CPEC

3 French Companies Interested in CPEC,

Says Envoy

4 Zong 4G Services Launched in Gwadar

5 1st Section Of CPEC’s Largest

Superhighway Inaugurated in Pakistan

6 Xi Calls for Developing China into World

Science and Technology Leader

7 In-house Meeting 6-Member Chinese

Delegation from Chinese People’s

Association for Peace and Disarmament

(CPAPD)

8 International Seminar on India: A

Pretentious Regional Power

Editor

Dr Ahmad Rashid MalikContact:The China-Pakistan Study Centre (CPSC)Institute of Strategic Studies IslamabadSector F-5/2 - Islamabad 44000Email : [email protected] : +92-51-9204423-4, 9214729Web : www.issi.org.pk

Pakistan Tests 1st Metro Train in Lahore under CPEC

Shahbaz Sharif, Chief Minister of Punjab, inaugurated the test run of the Orange Line Metro Train (OLMT) in Lahore on May 16, 2018, from Dera Gujran to Lakshmi Chowk on a 12-km portion of the total 27.1-km route. A total of 27 sets of trains, each comprising five cars, will be used for the service in the OLMT project, a part of the China-Pakistan Economic Corridor (CPEC). A statement issued said that:“The OLMT is Pakistan’s first mass rapid transit train project launched by the Punjab government. It will prove to be a real game changer for the people of Lahore and Punjab, who will experience a comfortable, secure and economical traveling facility,” said the statement. The test run was free of cost for travellers. The Chief Minister also took a tour of the train along with Chinese consular general in Lahore and senior officials of the Punjab government.“The OLMT project will transform people’s lives. The project will become the basis of an interaction between different classes of society by creating a sense of equality and ownership in social terms,” said the chief minister. An energy-saving air-conditioning system suitable for the constant high summer

temperature and unstable voltage in Lahore is the main trait of the train, said the officials, adding that the train has heat-resistant bogies, which will increase its durability. The OLMT is the first of the three rail lines of the proposed Lahore Metro project that is expected to transport half a million people daily. The OLMT, with operating speed of 80 km per hour, is expected to be used by up to 250,000 passengers a day at 26 stations.Out of the total line, a 25.4-km section is to be elevated, while a 1.72-km section will be underground, and 0.7 km of the track will be laid in the transition zone between elevated and underground sections.Xinhua (Beijing), May 17, 2018 (Condensed)

China, Pakistan make Great Headway Giving Banking Support to CPEC

China and Pakistan have made a great headway giving banking support to their growing socio-economic partnership, says a report published by the Middle East North Africa Financial Network (MENAFN). After establishing its first branch in Karachi in November 2017, the Bank of China formally launched a clearing and settlement mechanism of Chinese yuan. Having received clearance from the State Bank of Pakistan (SBP) for denominating foreign-currency transactions, one of the main targets of the Long-Term Plan of the China-Pakistan Economic Corridor for 2017-30 has been achieved. According to the report, giving the yuan equal status to the US dollar in Pakistan strengthens the financial bonds between these “all-weather strategic partners.” Now the Bank of China is the second Chinese bank to enter the Pakistani market, but it is much more significant as it has fourth and fifth global ranking currently in terms of Tier 1 capital and total assets respectively. At the inauguration ceremony that took place in Islamabad, Bank of China chairman Chen Siqing observed that the Karachi branch would be the bank’s first in South Asia, saying that it was ‘a great honor’

and that this would strengthen the ‘brotherly relations’ between the two countries in the financial sector. Launching the settlement and clearing mechanism provides yuan liquidity for the inter-bank market to make the smooth transition from the US dollar to the yuan. By reducing time delays and ensuring a steady remittance flow, it will be much easier for both Chinese and non-Chinese companies to invest in China-Pakistan Economic Corridor (CPEC) projects from now on.Notably, this is the second currency swap agreement inked with a Chinese bank. Assessing the development, Dr Ashfaque H Khan, dean of the NUST (National University of Sciences and Technology) School of Social Sciences, has said, ‘This is a good thing that the central bank has done. This is going to reduce pressure on demand for dollars because [the] trade deficit with China is contributing significantly to widening of the current-account deficit. With this measure, it will help reduce current account deficit as well which will further reduce our financing requirement, going forward.’Pakistan Observer (Islamabad), May 18, 2018 (Condensed)

Chinese General Calls on COAS, Lauds Pak Army’s Security for CPEC

2 The China-Pakistan Study Centre Newsletter

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Volume 2, Number 6 June 2018

Vice Chairman of Chinese Central Military Commission (CMC) General Zhang Youxia called on Chief of Army Staff (COAS) General Qamar Javed Bajwa at the GHQ on May 17, 2018 and discussed regional security and enhanced bilateral defence cooperation.

Matters of mutual interest, regional security and enhanced bilateral defence cooperation came under discussion during the meeting which was followed by delegation level talks. During the meeting, General Qamar Javed Bajwa said that Pak–China relations are all weather and based on mutual trust and confidence. General Zhang Youxia underscored Pak–China defence

and security cooperation, saying; “China and Pakistan are iron brothers, all weather friends and strategic partners. We share the tradition of mutual understanding, mutual trust and mutual support.” He further said that China deeply appreciates the achievements of Pakistan Army in counter terrorism and the

successful operation in various fields, adding that China values the efforts of Pakistan Army in fighting against all terrorist groups including East Turkistan Islamic Movement (ETIM), statement said. Highlighting the significance of CPEC, he said that the project is equally beneficial to both China and Pakistan. Adding that both

countries are committed to its continuous process and future success. “Efforts of Pakistan Army in safeguarding CPEC security are highly appreciated. We look forward to close cooperation with Pakistan to ensure security of CPEC,” he added. Both sides also signed different MoUs for bilateral defence cooperation. To pay homage to the martyrs of Pakistan Army, the visiting dignitary laid floral wreath at Yadgar-e-Shuhada. Earlier, a smartly turned out contingent of Pakistan Army presented guard of honour to Vice Chairman of Chinese CMC.

The News International (Rawalpindi), May 18, 2018 (Condensed)

China-Pakistan Economic Corridor (CPEC) enjoys the global support as China marked the fifth anniversary of the “Belt and Road” Initiative on May 14, 2018.

The BRI has already been signed up by more than 60 countries of the World and it is the biggest-ever connectivity plan or project of cooperative partnership, reflecting the President Xi Jinping’s vision of shared destiny. The past five years have seen the concept of the program being turned into concrete actions and results. It is pertinent to note that the CPEC is pilot and major project of BRI.

On 20 April 2015, Pakistan and China signed an agreement to commence work on the $46 billion agreement, which is roughly 20% of Pakistan’s annual GDP, with approximately $28 billion worth of fast-tracked “Early Harvest” projects are likely to be completed by the end of 2018. Experts expect the initiative to play a pivotal role in forming a new landscape for China’s comprehensive opening up, as well as global development. Official data suggest the

Belt and Road Initiative is gaining momentum in countries and regions all over the world. By the end of April this year, China had signed 101 deals with 86 countries and organizations in a wide range of areas under the initiative. In the past five years, China’s trade volume with countries along the Belt and Road routes has exceeded five trillion US dollars.

Recent data suggest the benefits unleashed by the Belt and Road Initiative began to stand out in 2017: under its framework, Chinese companies have established economic and trade zones in over 20 countries, bringing 1.1 billion dollars in tax income to those countries and creating over 180,000 jobs.

A new report suggests the initiative also unleashed benefits in bridging the digital gap, promoting education and facilitating cooperation in cultural communication and medical care.


CPEC Enjoys Global Support as China Celebrates 5th Anniversary of BRI

In order to cater expected higher demand of industrial gases in upcoming China-Pakistan Economic Corridor (CPEC) projects of special economic zones, Ghani Gases Limited has decided to setup fourth plant in Pakistan.

According to a bourse filing, the Board of Directors of Ghani Gases has decided to setup fourth new state-of-the-art plant in south with product storages and delivery equipment and the plant will be capable of producing up to 225 tons per day industrial and medical gases. This project is planned to be commissioned during third quarter of 2020 calendar year.Daily Times (Lahore), May 22, 2018 (Condensed)

Ghani Gases to Setup Fourth Plant in Pakistan in Wake of CPEC

National Logistics Cell to Run Dhabeji Special

Economic ZoneSindh Board of Investment (SBI) and National Logistics Cell (NLC) have signed a memorandum of understanding (MoU) to collaborate and promote the creation of a Logistics Park within the proposed China-Pakistan Special Economic Zone (SEZ) in Dhabeji-Thatta. According to an SBI press release the MoU was signed by NLC Director General Major General Mushtaq Ahmed Faisal and SBI Chairperson Ms Naheed Memon on May 15, 2018. Through this agreement both sides will actively carry out the engagements for the establishment of the Logistics Park, in accordance with the master plan and feasibility study of the China-Pakistan SEZ Dhabeji. Under the agreement, the SBI will promote and extend possible facilitation to NLC for its role as Logistics Park Management Organisation with the collaboration and partnership of foreign commercial enterprises and designated Chinese enterprises.

Dawn (Islamabad), May, 16, 2018 (Condensed)

3 Newsletter The China-Pakistan Study Centre

While Pakistan’s information technology (IT) ecosystem is evolving rapidly, experts suggest the government and private sector should lay a strong foundation for fast, healthy and balanced growth of product and service-based companies.

The China-Pakistan Economic Corridor (CPEC) provides a massive opportunity to Pakistan’s software developers, which may also help improve the country’s ranking in the WEF index. Scores of software would be needed to run projects developed as part of CPEC since Chinese were focusing on mass employment sectors, but before that Pakistan should start developing software-based companies, suggested Sajjad Syed.

Easypaisa can be expressed as a product-based company while TRG is a service-focused concern. In 2016, Pakistan had over 2,000 software houses and now it is the fourth largest base for freelance IT professionals. Of these, only around 10% are believed to be running product-based companies. “I would be surprised if there were any more,”

said Syed Ali, vice chairman of the Pakistan Software Houses Association (P@SHA). Service-based companies would hire people in large numbers in accordance with project requirements as mostly foreign companies asked for more than 2,000 sources (engineers) that no Pakistani company could provide at a time, said the P@SHA vice chairman, who is also 7Vals CEO.

7Vals has recently entered Pakistan’s market with a deal with Habib Bank Limited (HBL). Earlier, it provided maintenance software to 20% of Fortune 500 companies. Its software will help HBL in work order management, recurring maintenance and asset custodianship in its northern, central and southern branches. Despite hiring people in large numbers, the service-focused companies offer a considerably lower pay for long-hour jobs to the dismay of employees. These companies also lay off workers on a large scale. India, which has a $160-billion IT industry, laid off more than 56,000 employees in 2017 alone, therefore, Pakistan needs to create balance. Pakistan’s IT industry showed a 41% growth in 2014-15 and it is going to be a $10-billion industry by 2025, according to the Pakistan Software Export Board. “Pakistan needs business-to-business (B2B) products a lot since domestic companies are realising the importance of new technology in increasing their efficiency,” said Syed Ali.

The Express Tribune (Islamabad), May 21, 2018 (Condensed)

China has assured Pakistan to continue concessional financing for some of the China-Pakistan Economic Corridor projects, which may put the delayed projects back on track including the multi-billion dollar Mainline-I scheme of Pakistan Railways. This was stated by Federal Minister for Planning & Development Ahsan Iqbal on May, 21, 2018 while talking to media. He said the assurance to honour commitment for giving concessional loans was given by the Chinese ambassador to Pakistan in a 54th CPEC review meeting.

The Express Tribune (Islamabad), May 22, 2018 (Condensed)

China Gives Fresh Assurance on CPEC Financing

With CPEC, Climate Favourable for Growth of IT Start-Ups


The Islamabad Chamber of Commerce and Industry (ICCI) President Sheikh Amir Waheed, has said that Pakistan is an attractive destination for foreign investment as the government offered lucrative incentives to foreign investors. He invited foreign investors to explore opportunities of investment and joint ventures in various sectors of Pakistan’s economy. He was speaking at an Iftar Dinner hosted in honour of foreign diplomats on May 20, 2018. Diplomats of various countries including China, Japan, France, Australia, Britain, Turkey, India, Belarus, Uzbekistan, Tajikistan, Kyrgyzstan, Azerbaijan, Morocco, UAE, Nepal, Switzerland, Sri Lanka, Sudan, Austria and Tunisia attended the Iftar Dinner.

The ICCI president said under China Pakistan Economic Corridor (CPEC) project, many constructions and development projects have started in Pakistan in energy, infrastructure development, communication and other sectors. Moreover, 9 Special Economic Zones (SEZs) would be set up under CPEC in Pakistan that would provide good investment opportunities to foreign and local investors.

He said it was high time that foreign investors should visit Pakistan to explore investment and JVs in areas of interest. He said that they should focus on technology transfer to Pakistan and set up industrial units here. He emphasized that diplomats should apprise the investors of their respective countries about these potential investment opportunities and play a stronger role in promoting Foreign Direct Investment (FDI) in Pakistan.

Pakistan Today (Islamabad), May 21, 2018 (Condensed)

Diplomats Asked to Play Role in Promoting FDI in Pakistan

French companies would like to explore the China-Pakistan Economic Corridor (CPEC) project and try to discuss entry points after negotiations, Ambassador of France to Pakistan Dr Marc Barety said on May 14, 2018.“The French president during his recent visit to China had already given his views on CPEC which he believed to be a good connectivity for the region.” “As a matter of fact we are not waiting for CPEC because French companies are already investing in Pakistan but still in

future would like to explore it and find a space on getting equal opportunity,” the envoy said while talking to newsmen after inaugurating a bed linen factory set-up under a joint venture between French company Duquennoy et Lepers and Pakistani company D L Nash (Pvt) Ltd.

Responding to a question, the French envoy said that currently most potential sectors for investment in Pakistan are energy and transport. In the agriculture sector, there is a big scope but a lot of work has to be done for finding matching investors, he added. He said Pakistan enjoys trade surplus with France as the former exports are at $800m and latter at $600m.

Already four big French companies are operating in Pakistan, he said, and recently a popular French auto brand Renault through Dubai-based company Al-Futaim has decided to set-up a car assembly plant in Pakistan.

Dawn (Islamabad), May 15, 2018 (Condensed)

French Companies Interested in CPEC, Says Envoy

4 Newsletter The China-Pakistan Study Centre Volume 2, Number 6 June 2018

Alibaba Group Enters Pakistan’s E-Commerce Market with Daraz Acquisition

Alibaba Group has bought the entire share capital of Rocket Internet’s South Asian e-commerce platform Daraz Group, Rocket Internet said on May 8, 2018.

It did not disclose financial details. Daraz, founded in Pakistan in 2012, operates online marketplaces in Pakistan, Bangladesh, Myanmar, Sri Lanka and Nepal. The unit will continue to operate under the same brand following the sale to Alibaba, Rocket said. Daraz said its acquisition by Alibaba would help drive further growth in its key markets, home to 460 million people, 60% of them under the age of 35. “With hard work and dedication, we have started the e-commerce journey in our markets, but we have still only scratched the surface of the potential,” said Daraz Co-CEO Bjarke Mikkelsen. Daraz will continue to operate under its brand name after the transaction.


Electronic Data Exchange with China to Go Live SoonPakistan is on the verge of launching electronic origin data exchange, which would enable real time recording of trade between the two countries and help curb revenue evasion as well as money laundering, an official said.

Directorate General of Reforms & Automation – Customs has developed the software in this regard and user acceptance testing by Trade Development Authority of Pakistan (TDAP) has also been concluded.

“Presently, the testing of electronic message exchange through the software is in progress between the technical teams of China and Pakistan,” the official said.

The official added that the system, being developed under China-Pakistan free trade agreement (FTA), would be available for live

Zong 4G Services Launched in GwadarZong 4G network has launched its operations in the port city of Gwadar to cater to the increasing requirements of connectivity under the China-Pakistan Economic Corridor (CPEC), a statement said on May 10, 2018. The company said the launch of 4G services in Gwadar implies that foreign citizens and local residents who have been pursuing their respective business endeavours will have unhindered access to the 4G services.

The services will be offered at affordable rates, it said. “Massive network expansion symbolises our customer-centric approach to ensure that the interests of consumers stay above all the rest by offering them best and affordable network,” Zong 4G said. “We keep expanding our operational portfolio to ensure

enhanced operations in cities, towns, villages, and far-flung areas,” it added.


data exchange after the completion of testing.Imports from China constitute a significant part of Pakistan’s total imports, which opened doors for under-invoicing aimed at revenue evasion as well as over-invoicing aimed at moving out foreign exchange in an organized manner.

Finance Minister Miftah Ismail, in a recent interaction with newsmen, had said the government had detected mass under-invoicing on imports from China. The premier had also said the record at Pakistan Customs reported imports of $12 billion from China last year, while data at Chinese Customs reported exports of $16 billion to Pakistan during the same period.


Chinese Furniture Manufacturers Keen to Enhance Business with Pakistan

Chinese furniture manufacturers have underlined the need of further enhancing collaboration with Pakistan Furniture Council (PFC) to promote furniture business between the two countries.They said there were plenty of opportunities to increase furniture export volume to China due to its upward trend, as the demand for furniture and wooden products are on the rise in Chinese markets along with the domestic consumers.In a statement, Chief Executive Officer PFC Mian Kashif Ashfaq said that foreign furniture producers and investors have shown their keen interest in Pakistani furniture brands especially handmade traditional furniture.



1st section of CPEC’s Largest Superhighway Inaugurated in Pakistan

Prime Minister Shahid Khaqan Abbasi inaugurated the first section of the 392-km Multan-Sukkur Motorway, the largest transportation infrastructure project under the China-Pakistan Economic Corridor (CPEC) in Multan in the eastern Punjab province. The Prime Minister opened the 33-km section spanned from Multan to Shujaabad city for public, which was completed well before the stipulated time. The six-lane superhighway will connect the southern port city of Karachi with north-western side, Peshawar through Punjab and Sindh.

The motorway also called M-5 is expected cut the travel distance between Multan and Sukkur from 463 km to 392 km, which can be covered in less than four hours at the maximum designed speed of 120 km per hour. The whole project is scheduled to be completed by August 2019. The fully carpeted superhighway being built with modern technology will have 11 interchanges, 22 toll plazas equipped with latest intelligent technology, six public service areas, five

rest areas, 107 underpasses, 188 subways, 100 bridges and other facilities. Addressing the audience, Prime Minister said that the motorway is a symbol of close cooperation between Pakistan and China.

He said CPEC is the implementation of Chinese vision of connectivity and opening up under the Belt and Road Initiative that is bringing great economic opportunities to the region.On the occasion, Chinese Ambassador to Pakistan Yao Jing said that five years after its start, CPEC has become a reality, which is a demonstration of a new level cooperation between China and Pakistan.

Yao told the audience that Chinese companies working at CPEC projects have provided over 100,000 jobs to local people and played their role to uplift people’s lives by doing several social welfare works, including restoration and establishment of schools and technical training centers.

Xinhua (Beijing), May 27, 2018 (Condensed)

CJP Calls for Dialogue to Assess Impact of CPEC

Chief Justice of Pakistan Mian Saqib Nisar on May 4, 2018 highlighted the need for a serious dialogue to assess the impact of the China-Pakistan Economic Corridor (CPEC).

There must be a consensus among all stakeholders in going forward and evaluating

the legal, social, cultural and economic aspects of the multi-billion-dollar Chinese investment, he said.

The Chief Justice stressed the importance of developing capabilities that would address the several legal and administrative complexities — as well as grey areas — which could prove to be stumbling blocks in realising the full potential of CPEC investments.

The Chief Justice was speaking at the opening ceremony of the 8th Judicial Conference organised by the Law and Justice Commission of Pakistan at the Supreme Court building in Islamabad.

Dawn (Islamabad), May 5th, 2018 (Condensed)

China Plans Electric Cars in PakistanAC Motor, a Chinese state-owned automobile and commercial manufacturer based in Anhui province, is planning to introduce electric vehicles, its Deputy Chief Economic Manager David Zhang said. Talking to APP, he said, “We are planning to introduce new energy vehicles particularly electric cars in the Pakistani market under a long term development programme in the future.” Expressing confidence into the current economic situation in Pakistan, he said Pakistan’s economy is now gearing up and there is more improvement in development of infrastructure. He said the management of the company is thinking and aiming at the opportunity to expand its production line in Pakistan. He pointed out that the cost of the electric cars has also decreased a lot and it has become an economically viable for the middle

class, adding, “With more improvement in the economy and fundamental structure ready, we will have an opportunity to take our electric car into Pakistani market.” David Zhang informed that his company is already exporting its products especially the light and mini trucks to Pakistan and it has also set up a factory to manufacture these trucks locally.“The performance of our products in the local market has been very good and we will expand our lines of production from medium to heavy duty trucks in near future,” he added.

He said both China and Pakistan have friendly relations and are also strategic partners and the businessmen of the two countries have a very good potential to work together. He opined that the Chinese investors could take advantage of good potential and incentives offered by government of Pakistan under the China Pakistan Economic Corridor, a flagship project of Belt and Road Initiative. About the sales outside China, he said his company began the export of vehicles in 1990 to Bolivia and its products have subsequently been sold in over a hundred countries, adding light trucks are a popular exported product. Some JAC exports are in the form of knock-down kits, which are assembled at overseas factories in countries including Egypt, Ethiopia, Vietnam, Mexico and Iran.

The Nation (Islamabad), May, 20, 2018 (Condensed)


Pakistan to Start New Flights for China,

Saudi Arabia The Pakistan International Airlines (PIA) is planning to start new flights to China and Saudia Arabia, PIA’s spokesperson Mashood Tajwar said on May 2. The spokesperson of the national flag carrier was quoted as saying on Twitter by the government that the new PIA will start new flights to the Chinese city of Guangzhou and Saudi Arabian cities of Taif and Al-Qasim. Talking about the New Islamabad International Airport, the PIA spokesperson stated that the latest airport facility is studded with the current and modern facilities which will help Pakistan boost its economy. The New Islamabad Airport has been designed to cater to 9 million passengers and handle 50,000 metric tons of cargo in the initial phase.


China Focus: Xi Calls For Developing China into World Science and Technology Leader

President Xi Jinping on May 28, 2018 called for efforts to develop China into a world leader in science and technology. Xi, also general secretary of the Communist Party of China (CPC) Central Committee and chairman of the Central Military Commission, said as China strives for prosperity and rejuvenation, it needs to devote great energy to promoting science and technology, and endeavor to be a major world center for science and innovation. Xi made the statement at the opening of the 19th Meeting of the Academicians of the Chinese Academy of Sciences (CAS) and the 14th Meeting of the Academicians of the Chinese Academy of Engineering (CAE).

Xi said the circumstances, challenges and missions are pressing. He called on the country’s science and technology personnel to grasp the main trends, seize opportunities, face problems squarely, and rise to challenges.Xi said they should aim for the frontiers of science and technology, lead the direction of its development, shoulder the heavy responsibilities bestowed by history, and be vanguards in innovation in the new era. Members of the Standing Committee of the Political Bureau of the CPC Central Committee attending the meeting were Premier Li Keqiang, Wang Huning, who is a member of the Secretariat of the CPC Central Committee, and Vice Premier Han Zheng. Xi noted that since the 18th CPC National Congress in 2012, China has been adhering to the Party’s leadership over the cause of science and technology, striving toward the goal of developing China into a science and technology power, sticking to the path of innovation with Chinese characteristics, inspiring creativity vitality through deepened reform, stressing the key role of talent in innovation-driven development, and integrating itself into a global network of innovation.

Historic, holistic, and structural changes have taken place in China’s science and technology sector. China’s strength in this field is undergoing a transition from quantity accumulation to quality leap, and from breakthroughs in certain fields to improvement of systematic capabilities, Xi said. A new round of scientific, technological, and industrial revolutions are reshaping the world domain of innovation and global economic structure. The impact of science and technology on a country’s future and the people’s wellbeing has never been so profound as today, he said. Calling innovation, the primary driving force of development, Xi said efforts must be made to ensure “high-quality science and technology” to underpin the development of a modernized economy.Xi required integration of the internet, big data, and artificial intelligence with the real economy, advance fundamental

transformations of the industrial pattern and enterprise forms in the manufacturing and move Chinese industries up to the medium-high end of the global value chain. Xi called for unwaveringly carrying out independent innovation, having firm confidence and enhancing the capability in this regard. Noting that independent innovation is the only path for China to climb high in global science and technology, Xi urged courageous moves to reach for the “commanding heights” in scientific and technological competition and future development. Xi called for courage to explore the uncharted courses and realize the goal that key and core technologies are self-developed and controllable. “The initiatives of innovation and development must be securely kept in our own hands,” Xi said. Also, Xi demanded greater efforts to research and plan for scientific issues that are of fundamental significance and overall importance.

Prime resources should be focused and strategic planning made to deal with “key areas and stranglehold problems,” Xi said, calling for breakthroughs at the earliest possible date in these fields. Xi urged overall reform of scientific and technological system, to improve innovation efficiency and inspire innovation vitality. Technological innovation should be accompanied by institutional innovation, Xi said. Xi called on Chinese scientists to be deeply involved in the global governance in science and technology, offer Chinese wisdom, and make greater efforts to promote the building of a community with a shared future for humanity. Efforts should be made to deepen international exchanges and cooperation, make use of global innovation resources, and establish partnerships featuring win-win cooperation to deal with common challenges concerning future development, food and energy security, health and climate change, Xi noted. While achieving its own development, China will bring benefits to more countries and their peoples and promote balanced development around the globe, Xi said.

Xi encouraged integration into the global innovation network and enhancing opening-up of the country’s scientific and technological plans, saying Chinese scientists are encouraged to actively participate in and lead international science plans and projects, and initiate and organize international scientific cooperative programs. Xi called for efforts to create a good environment for innovation, and mechanisms to foster talent and let everybody display their talent. The CAS and CAE should continue to play their role as the state strategic scientific and technological force and work with all in the field in the country to push for strides in development and scale new heights in science, Xi said. Xi urged the academicians to do forward-looking, targeted, and strategic research. Calling academicians, a treasure of the state, pride of the people, and honor of the nation, Xi said he hoped they could gain continuous breakthroughs in key scientific fields. Party leadership is the fundamental political guarantee of advances made in the cause of scientific innovation with Chinese characteristics, Xi said. He stressed the role of youth in the future of the country and innovation. “Numerous children in China dream of becoming a scientist. We should make science an appealing career for the young,” Xi said. Leading officials of the Party, the national legislature, the cabinet, the top political advisory body, and the military were present at the conference.

It was presided over by CAS President Bai Chunli. CAE President Zhou Ji delivered opening remarks. The event was attended by more than 1,300 academicians, representatives of outstanding scientists and grassroots science and technology personnel, officials from the central government agencies and the military, research institute fellows, and university students and teachers.



Report – In-house Meeting 6-Member Chinese Delegation from Chinese Peoples Association for Peace and Disarmament (CPAPD)

The Institute of Strategic Studies Islamabad (ISSI) hosted an In-House Meeting on May 14, 2018, with a 6-member Chinese delegation from Chinese Peoples Association for Peace and Disarmament, (CPAPD). The delegation was led by Mr. Zhou Li, Vice President, CPAPD & Vice Minister of the International Department, Central Committee of CPC and various other distinguished researchers and program officers were present.

The Chairman ISSI, Ambassador (Retd.) Khalid Mahmood, welcomed the distinguished guests and said that the upsurge in Pak-China relationship has been witnessed by a number of initiatives, particularly the China-Pakistan Economic Corridor (CPEC) signed between the governments of both the countries. Ambassador Mahmood said that keeping in view the significance of the bilateral relations, the ISSI established a China-Pakistan Study Centre for dedicated and in-depth study of CPEC and the broader Pakistan-China relations. Mr. Zhou Li thanked the Chairman for hosting the meeting and talked at length on the significance of China-Pakistan relations. Mr. Zhou further said that in the upcoming Shanghai Cooperation Organization (SCO) meeting scheduled in June 2018, new commitments will be made to strengthen

cooperation between the two countries. Giving a short brief on CPAPD, Mr. Zhou said that it was established in 1985, and it has now established contacts with 300 organizations in 90 countries to work and strive to maintain peace in the world. Mr. Zhou asked about the public expectations in Pakistan about CPEC and the challenges it faces ahead. Dr. Ahmad Rashid Malik, Director, China-Pakistan Study Centre presented an overview of the progress of CPEC projects in Pakistan.

On CPEC, he specifically said that this project will connect China’s developing western region with Pakistani ports and economy. Dr. Malik concluded by saying that this

The Institute of Strategic Studies Islamabad (ISSI) hosted an In-House Meeting on May 23, 2018, with a 6-member Chinese delegation from Foreign Affairs Committee of the Chinese People’s Political Consultative Conference (CPPCC). The delegation was led by H.E. Mr. Kong Quan, Deputy Chairman, CPPCC and comprised senior parliamentarians. Ambassador (Retd.)

Khalid Mahmood, Chairman ISSI, welcomed the distinguished guests and said that the Institute is proud to host a high-level delegation. He mentioned that CPPCC is equivalent to Senate of Pakistan. He underscored that China and Pakistan has enjoyed multi-faceted cooperation with each other. Bilateral relationship is marked by ever increasing friendship and mutual trust as there are no disputes between two nations.

He further underlined through China-Pakistan Economic Corridor (CPEC) project relationship is deepening in the fields of economic development cooperation and people to people contact through vision of CPEC. Thus, being cognizant of the significance of the bilateral ties, ISSI has established a dedicated China-Pakistan Study Centre (CPSC) for in-depth study of CPEC, China and China-Pakistan relations. H.E. Mr. Kong Quan thanked

mega project is an assurance of greater development, integration and connectivity between Pakistan and China, and beyond. Mr. Najam Rafique, Director Research, ISSI said that despite the close bilateral relations between China and Pakistan, it is observed that the representation of Pakistani scholars in the think tanks in China is minimal as compared to the presence of Indian scholars there. Also, he said that China must provide visa-on-arrival facility and tourist visas to Pakistanis, which is very important to enhance close people-to-people contacts between the two countries. Chinese authorities must look into this matter and rectify this shortcoming.Report by Neelum Nigar (CPSC)

Report – In-house Meeting 6-Member Chinese Delegation from Chinese People’s Political Consultative Conference (CPPCC)

Chairman ISSI for hosting the meeting and his remarks. Mr. Quan noted that China-Pakistan friendship is very solid marked by wide-ranging cooperation. He underlined that in China’s diplomacy Pakistan has always stood at priority. Referring to his own diplomatic career he highlighted that China-Pakistan ‘All-weather strategic cooperative friendship’ has solid foundations of mutual trust and mutual support.

Giving a background of CPPCC he remarked that CPPCC is a consultative body which engages Communist Party of China (CPC) and 8 other non-communist parties. In this sense it is a unique body with Chinese characteristics. CPPCC consists of 2158 members from 56 ethnic groups. He underlined that a significant

feature of CPPCC is political consultation, and diplomatic engagement. Ambassador Khalid Mahmood thanked Mr. Quan for briefing ISSI researchers on the role played by CPPCC. Dr. Ahmad Rashid Malik, Director, China-Pakistan Study Centre presented an overview of CPEC projects.

On CPEC, he specifically stated that it touches every sector of Pakistani economy, including building of ports, infrastructure, and economic zones. Pakistan is expecting to provide more than 8 million jobs to youth. Gwadar is emerging as a hub of commercial activity. He underscored that CPEC will ensure economic growth in Pakistan and pave the way for better and prosperous Pakistan.Report by Muhammad Faisal (CPSC)

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‘A Peaceful North Korea’Dr Ahmad Rashid MalikThe Nation (Islamabad),May 23, 2018

8 Newsletter The China-Pakistan Study Centre

Designed by Sajid Zaidi


International Seminar on India: A Pretentious Regional Power“India has presented to the world a particular face: a rising India, a shining India, secular and democratic India…but this belies the harsh realities of the millions of impoverished citizens of the country whose voices and faces remain hidden.” This was stated by Honourable Engineer Khurram Dastgir Khan, Minister of Defense, during his address as Chief Guest, at the International Seminar on “India: A Pretentious Regional Power”, organized by the Institute of Strategic Studies Islamabad (ISSI) at the Marriot Hotel, Islamabad on May 7, 2018.

The seminar was presided by Ambassador (R) Inam-ul-Haque, former Foreign Minister of Pakistan. Eminent speakers at the seminar included: Dr. Ejaz Akram, advisor to President National Defense University (NDU); Dr. Habil. Christian Wagner, Head of Research Division Asia at the German Institute for International and Security Affairs (SWP); Ms. Laura Schuurmans, independent writer and researcher based in Jakarta; Dr. Muhammad Mujeeb Afzal, Assistant Professor at the Quaid-i-Azam University (QAU) and Mr. Mohammad Waqas Sajjad, Senior Research Fellow at ISSI. Engineer Dastgir Khan stated that for

India as well as Pakistan, non-traditional security threats that affect people’s lives and livelihoods, such as water insecurity, climate change and the like should be seriously tackled.

Accepting India as a pretentious regional power is important for both Pakistan, as well as for the rest of the world – particularly for the former so as to certify that it is prepared to meet any challenge militarily. The minister went on to say that while Pakistan has for several decades been raising the issue of human rights abuses in Kashmir, it is only now that the international community is beginning – and that too ineffectively – to notice the violence brought by Indian state agencies. The speakers analysed the growing economic insecurity and issues of governance in India. The main points raised in the seminar were that though India has projected that it has a common goal to contain China as a rising power, and in this regard, to rebalance the world order, it is still reflective of a society facing multiple problems where the highest authorities are either directly or indirectly complicit in gross violation of human rights, and undermining human security and civil liberties of its citizens. The biggest challenge India faces – as do other developing countries – is catering to a growing youth population with adequate employment opportunities. Sideways, the

growing phenomenon of xenophobia is fast emerging in India and must be countered. Overgrown and pre-mature claims of greatness should not be accepted at face value and need scrutiny and analysis. In this regards, Pakistan needs to see where India is going wrong so it does not follow that course of action and thus avoid the pitfalls. Earlier, in his opening remarks, Chairman ISSI, Ambassador Khalid Mahmood said that the idea of the rising Indian economy can no longer be used to sustain the argument and belief of India as a regional power. The resurgence of rabid Hindutva ideology, which enjoys state patronage, is tearing the religio-social fabric of the Indian society. The rampant “Saffron Terrorism” puts paid the claims of secular pluralist India. Outwardly, India has uneasy to hostile relationship, over- laden with unresolved disputes, with most of its neighbours, holding back much needed regional economic integration envisioned under the SAARC and CPEC.

In his concluding remarks, the Chairman thanked all the speakers and laid emphasis on the importance of curbing the declining human security and economic deprivation in India. He said that though India does have the requisites of becoming a major power, but as yet it does not have the pre-requisites of becoming that major power.

Report by Uroosa Khan (CPSC)

Trump Indonesia Project Latest Stop on China’s Belt and Road

A billion-dollar Indonesian property development with ties to US President Donald Trump has become the latest project in China’s globe-spanning Belt and Road infrastructure project – just as Washington and Beijing are tussling

over trade. A subsidiary of Chinese state-owned construction firm Metallurgical Corporation of China (MCC) signed a deal with Indonesia’s MNC Land to build a theme park outside Jakarta as part of the ambitious project, the company said on Thursday.

The project includes Trump-branded hotels, residences and a golf course, as well as other hotel, shopping and residential developments. The park – expected to be backed with up to US$500 million in Chinese government loans – is part of an “integrated lifestyle resort”, known as MNC Lido City. Referring to its

subsidiary, MCC described the theme park as “the first culture and tourism industry project by the Central Research Institute of Building and Construction” and was “in response to” China’s Belt and Road Initiative.It is also the first project to link Trump’s business interests to China’s signature infrastructure initiative, which aims to connect the world’s second-largest economy with Africa, Asia and Europe through a vast network of ports, railways, roads and industrial estates.


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