More than just a formality President Asif Ali Zardari’s visit to China is proving to be more than the usual formality expected when a head of state goes visiting. His meeting with Chinese Prime Minister Li Qiand showed that the visit was going to lead to an advancement in the relationship between the two countries. While the two leaders expressed mutual sentiments of good wishes, the understanding they evolved on the direction the China-Pakistan Economic Corridor was going to take, going into renewable energy, science and technology, infrastructure and agriculture. This shows that CPEC is to move beyond the original conception of a link between Xinjiang and the outside world, passing through Pakistan and centred around Gwadar.
That the understanding of the shape CPEC 2.0 is taking has already reached the stage of implementation is shown by the kind of MoUs that were signed in the presence of Mr Zardari. A very significant MoU was signed between the Sindh Energy Department and a renewable energy company, for both wind and solar power. It is worth noting that CPEC included a number of thermal power projects, which have either been cancelled or had their tariff agreements revised. Therefore, the shifting of Chinese interest towards renewable energy projects is not just welcome but timely. China is already an indirect contributor to the solarization revolution in Pakistan, as the solar panels for both domestic and agricultural connections are imported from China. The boost to wind power is needed, for renewable energy so far have been solar and hydel, even though it is much more extensive, and costs are making them much more feasible.
It is also worth noting that another MoU was between a Pakistani cement company and a Chinese construction company. While the complementarity is striking, it also shows one way in which Pakistan can boost its exports, by providing a raw material which China needs for its development. It is of great importance that the path provided helps Pakistan boost its exports.
Apart from CPEC, and even apart from defence cooperation, Pakistan and China need to concert measùres to smooth Pakistan into BRICS, and related to that is the process of dealing with the USA, especially now that it seems bent on dragging China into trade war. Pakistan will find itself increasingly on China’s side, especially as it furthers ties with Russia, The USA’s use of India in the region against China also creates a dynamic that drives Pakistan and China closer.