The China-Pakistan Economic Corridor (CPEC) is not only a collection of roads, ports, and power plants but also a cornerstone of one of the most enduring and strategically significant partnerships in Asia. Since the formalization of diplomatic relations in 1951, China and Pakistan have described their bond as “higher than the Himalayas, deeper than the oceans, and sweeter than honey.” This poetic expression captures the sentiment of a relationship that has evolved from military cooperation to an all-encompassing strategic alliance. CPEC, launched in 2015 under China’s Belt and Road Initiative (BRI), represents a turning point, transforming the two countries’ partnership into a multifaceted collaboration encompassing economics, defense, and diplomacy.
As of 2025, the total value of CPEC projects has surpassed 62 billion dollars, making it one of the largest bilateral investment programs in the world. This partnership aims to enhance connectivity, stimulate industrialization, and strengthen Pakistan’s economic backbone while providing China with direct access to the Arabian Sea and the Middle East. Yet beyond infrastructure, CPEC symbolizes a geopolitical alliance with far-reaching implications for regional balance, security, and economic integration.
Economic Ties: A Partnership Rooted in Shared Growth
Economic cooperation has become the most visible and impactful dimension of the China-Pakistan partnership. Since the launch of CPEC in 2015, bilateral trade has grown dramatically. In 2013, trade between the two nations was valued at approximately 12 billion dollars. By 2024, this figure had risen to over 27 billion dollars, according to Pakistan’s Ministry of Commerce. China is now Pakistan’s largest trading partner, accounting for nearly 25 percent of Pakistan’s total imports and around 10 percent of its exports.
CPEC investments span energy, infrastructure, and industrial development. More than 75 percent of early-harvest CPEC projects have been completed, including highways, special economic zones, and major energy plants. The Gwadar Port, often described as the “jewel of CPEC,” has become a critical node for regional trade. Once a small fishing village, Gwadar is now equipped with deep-sea berths capable of handling cargo vessels up to 70,000 tons, linking China’s western provinces to the Arabian Sea.
China has also become a significant investor in Pakistan’s manufacturing and technology sectors. Companies like Haier, Huawei, ZTE, and China Mobile have established production facilities, call centers, and R&D units in Pakistan. Haier’s factory in Lahore, for example, produces over 1 million appliances annually and exports to markets across South Asia. Moreover, through the Pakistan-China Free Trade Agreement (Phase II), implemented in 2020, tariffs on more than 3,700 goods were reduced or eliminated, promoting greater export potential for Pakistani textiles, agricultural products, and minerals.
CPEC’s industrialization component includes the development of nine Special Economic Zones (SEZs), strategically located across Pakistan. These zones aim to attract foreign direct investment, create employment, and facilitate technology transfer. According to the Board of Investment Pakistan, SEZs are projected to create more than 1.2 million direct and indirect jobs by 2030. The Rashakai SEZ in Khyber Pakhtunkhwa alone has attracted over 400 million dollars in commitments from Chinese firms specializing in steel, chemicals, and pharmaceuticals.
Economic cooperation also extends to agriculture and digital connectivity. China has invested in Pakistan’s cotton, rice, and fisheries sectors, providing modern irrigation systems, high-yield seeds, and technical expertise. In 2023, bilateral cooperation in agricultural technology led to a 35 percent increase in Pakistan’s hybrid rice yields, boosting rural income and food security.
Financially, China has played a critical role in stabilizing Pakistan’s economy during fiscal crises. Through the People’s Bank of China, Pakistan’s central bank has received multiple currency swap arrangements worth 10 billion yuan, easing foreign exchange pressures. Additionally, China has provided loans and rollovers worth more than 5 billion dollars since 2022 to help Pakistan manage its external debt obligations and maintain macroeconomic stability.
Security Cooperation: Strengthening Regional Stability
Security collaboration is another vital pillar of the China-Pakistan strategic partnership. Both nations view stability in South Asia as essential to their national interests and the success of CPEC. Pakistan’s western and northern regions, which host critical CPEC routes, have historically been affected by insurgency and terrorism. To secure these zones, Pakistan established the Special Security Division (SSD) and the Maritime Security Force, deploying over 15,000 troops and 5,000 naval personnel to protect Chinese workers and infrastructure.
China and Pakistan also engage in regular joint military exercises. The “Warrior” and “Sea Guardians” series of drills are held annually, involving counter-terrorism, intelligence sharing, and maritime operations. These exercises are designed to enhance interoperability and strengthen both nations’ capacity to respond to asymmetric threats. In 2024, the two militaries conducted “Sea Guardians-4,” a major naval exercise in the Arabian Sea, featuring advanced Chinese frigates and Pakistani submarines.
China has also supported Pakistan in modernizing its defense technology. Joint ventures like the JF-17 Thunder fighter aircraft, co-produced by Pakistan Aeronautical Complex and China’s Chengdu Aircraft Corporation, symbolize the success of this cooperation. The JF-17 now forms the backbone of the Pakistan Air Force, with more than 140 aircraft in service and export deals signed with countries such as Nigeria and Myanmar. Additionally, China has supplied Pakistan with Type 054A/P frigates, SH-15 howitzers, and HQ-9 missile defense systems, bolstering Pakistan’s conventional and defensive capabilities.
Beyond military hardware, both nations collaborate on counterterrorism and intelligence sharing. Since 2018, they have operated joint intelligence coordination cells focusing on extremist groups that threaten CPEC infrastructure and border stability. The two sides have also coordinated efforts to combat cyber threats and financial crimes, ensuring that CPEC-related investments are safeguarded from illicit networks.
China’s involvement in Pakistan’s security extends into regional diplomacy as well. Both countries share concerns over instability in Afghanistan. Following the Taliban’s return to power in 2021, China and Pakistan jointly pushed for inclusive governance and counterterrorism measures to prevent cross-border militancy. The China-Pakistan-Afghanistan Trilateral Dialogue, launched in 2017, remains an important platform for coordinating regional security efforts.
Diplomatic Relations: A Global Partnership
Diplomatically, the relationship between China and Pakistan has matured into a model of strategic alignment. Pakistan was among the first countries to recognize the People’s Republic of China in 1951, and since then, both nations have consistently supported each other on key international issues. China has backed Pakistan’s stance on Kashmir in international forums, while Pakistan has supported China’s positions on Taiwan, Tibet, and Xinjiang.
High-level diplomatic exchanges have been a hallmark of this enduring partnership. Since the start of CPEC, leaders from both nations have met frequently. President Xi Jinping’s landmark visit to Islamabad in April 2015 marked the official launch of CPEC and pledged 46 billion dollars in initial investments. Subsequent visits by Pakistani Prime Ministers Imran Khan (2018, 2019, and 2022) and Shehbaz Sharif (2023 and 2024) have reaffirmed commitments to deepening bilateral cooperation.
In 2023 alone, the two countries signed over 30 new agreements covering energy transition, trade facilitation, digital innovation, and education. The Pakistan-China Joint Cooperation Committee (JCC), established under the CPEC framework, has held 12 sessions to monitor progress and address operational challenges.
Culturally, the relationship has expanded through people-to-people exchanges. Over 30,000 Pakistani students are currently enrolled in Chinese universities, making Pakistan one of the top five countries sending students to China. Language and cultural cooperation have also deepened, with 20 Confucius Institutes operating across Pakistan, offering Chinese language courses and scholarships.
The diplomatic relationship also has a strong multilateral dimension. Both nations cooperate within organizations such as the Shanghai Cooperation Organization (SCO), the Asian Infrastructure Investment Bank (AIIB), and the United Nations. Within the SCO, Pakistan and China have advocated for enhanced counterterrorism coordination and regional economic connectivity. China’s support was crucial in Pakistan’s inclusion in the SCO in 2017.
China’s investments have also enhanced Pakistan’s international standing. As a key participant in the Belt and Road Initiative, Pakistan’s role as a logistical and economic hub has gained recognition across Central Asia, the Middle East, and Africa. The Gwadar Port, linked to China’s Xinjiang province via the Karakoram Highway, provides China with a strategic maritime outlet bypassing the Strait of Malacca, while giving Pakistan the opportunity to serve as a gateway for regional trade.
Challenges and Future Outlook
Despite the immense progress, the China-Pakistan strategic relationship faces challenges. Concerns about Pakistan’s debt sustainability, project delays, and security risks in Balochistan have occasionally strained perceptions of CPEC. However, both nations have demonstrated resilience in addressing these issues through dialogue and adjustments. For example, the second phase of CPEC, launched in 2021, prioritizes industrial cooperation, agriculture, and digital connectivity rather than new loans, shifting focus toward sustainable development and export-led growth.
China’s approach has also evolved from a state-driven model to greater private sector participation. The inclusion of private Chinese investors in renewable energy and logistics projects marks a diversification of the CPEC framework. Meanwhile, Pakistan’s government has introduced policy reforms to facilitate foreign investment, streamline customs procedures, and improve energy sector governance.
Looking forward, the China-Pakistan relationship is expected to deepen even further. New projects in green energy, digital infrastructure, and artificial intelligence are being discussed under the “CPEC 2.0” initiative. The planned cross-border fiber optic cable from Kashgar to Gwadar will improve Pakistan’s digital connectivity, while collaboration on electric vehicle manufacturing is set to support both economic and environmental goals.
Conclusion
The China-Pakistan strategic relationship, strengthened by CPEC, is a powerful example of how economic, security, and diplomatic cooperation can intertwine to serve mutual interests. Beyond roads and power plants, CPEC symbolizes a shared vision of connectivity, development, and stability. As the partnership evolves, it continues to influence the broader geopolitical landscape of South and Central Asia.
Through economic interdependence, defense collaboration, and unwavering diplomatic support, China and Pakistan have built a partnership that stands as a cornerstone of regional cooperation. While challenges remain, the trajectory of this alliance points toward even deeper integration, greater resilience, and a more strategically connected future for both nations.
