U.S. Strategic Influence VS. China’s Economic Engagement: Pakistan’s Choices?

U.S. Strategic Influence VS. China’s Economic Engagement: Pakistan’s Choices?

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Pakistan surely knows how to strike a fine balance between the U.S. and China, two great powers and major competitors, instead of placing all of its eggs in the same basket. It is in Pakistan’s best national interest to hold on to this intricate balance as the former backs its defense and security needs while the later assists Pakistan to grow as an economically viable state. The world does not only revolve around geo-economics, rather it still gives an eminent importance to geo-strategic culture of world politics. This infers that Pakistan finds itself in a unique position where balancing ties with both the United States and China is not only strategic but essential. The U.S. has been a long-time ally on matters of defense and security, whereas China has become an indispensable partner in advancing Pakistan’s economic aspirations. Sustaining this intricate equilibrium is crucial for Pakistan’s best national interest, as it allows Islamabad to benefit from the strengths of both global powers without compromising its sovereignty or strategic autonomy. In that way, Pakistan needs to diversify its partners for development, economy, defense and security apparatus; thus, advocating for multilateralism, matching the pace and trend of 21st century.

The relationship of Pakistan with the U.S. has been a roller-coaster journey while with China, it shares an all-weather friendship. The ups and downs of Pakistan’s relationship with U.S. have been shaped by mutual interests and shifting geopolitical priorities. During the Cold War, Pakistan aligned with the U.S. to counter Soviet influence, receiving economic and military support as part of alliances like SEATO and CENTO. This partnership peaked in the 1980s during the Soviet invasion of Afghanistan, when Pakistan became a frontline state, aiding U.S.-backed Afghan Mujahideen efforts, solidifying its strategic value. However, after the Soviet withdrawal, U.S. interest waned, and relations soured as sanctions were imposed under the Pressler Amendment in the 1990s over Pakistan’s nuclear ambitions. The relationship rebounded post-9/11 when Pakistan became a critical ally in the U.S. War on Terror, yet faced new tensions over Pakistan’s complex ties with militant groups. Despite renewed security cooperation, U.S.-Pakistan ties remain fragile, balancing between dependence and distrust, with Washington’s focus now shifting toward countering China. Today, Pakistan’s relationship with the U.S. involves a delicate balance between defense cooperation and economic needs, with growing complexities as Pakistan simultaneously deepens its ties with China, adding another layer to this roller-coaster diplomatic journey.

The United States has played a pivotal role in supporting Pakistan’s defense sector serving as one of its most significant military partners for decades. Pakistan’s military personnel have benefited from training programs and educational opportunities provided by U.S. military institutions, enhancing their tactical skills and exposure to modern warfare techniques. In the post-9/11 era, Pakistan’s role as a frontline ally in the War on Terror led to further U.S. military assistance, including advanced surveillance systems and helicopters essential for counterinsurgency operations. With Pak-U.S. close defense ties, Pakistan not only bolsters its capabilities to counter external threats but also gains access to intelligence-sharing mechanisms that enhance its internal security framework. Moreover, the security environment of Pakistan is shaped by its rivalry with India and the fragile situation in Afghanistan. In this context, reliance on a singular defense partner would be risky and potentially limiting. Furthermore, this dual engagement helps Pakistan to shield itself against the pressures of aligning too closely with either power, maintaining its capability to respond to regional threats independently. Although, Pakistan now diversifies its defense sources increasingly turning to China and Russia to meet its evolving needs yet, it is crystal clear that the U.S. will remain Pakistan’s top defense and security partner. Pakistan’s strategic interest lies in keeping this relationship stable, as the U.S. can play a pivotal role in containing regional security threats and ensuring stability.

On the other hand, China has become an indispensable economic partner for Pakistan primarily through the China-Pakistan Economic Corridor (CPEC), a cornerstone of China’s Belt and Road Initiative (BRI). CPEC, with investments totaling over $60 billion, has funded extensive infrastructure projects across Pakistan, including road networks, railways and the development of the deep-sea port at Gwadar, which is strategically positioned to enhance regional trade connectivity. Power projects under CPEC have helped mitigate Pakistan’s chronic energy shortages, with coal, hydroelectric and renewable energy plants boosting the national grid and reducing blackouts. Beyond infrastructure, China has also provided Pakistan with substantial loans and investments, which have been crucial during economic crises, particularly when Pakistan faces mounting debt and balance-of-payments challenges. In aligning with China’s BRI, Pakistan aims to reduce its economic vulnerability and stimulate domestic growth. China’s investments are not only reshaping Pakistan’s infrastructure but also providing opportunities for job creation and industrial development. This economic partnership can help Pakistan make strides toward becoming a more viable economic entity, thus reducing its dependency on external financial aid from institutions like the IMF and World Bank.

Additionally, China is Pakistan’s largest trading partner, with bilateral trade expanding each year as Chinese goods flood Pakistani markets and Pakistan exports textiles, minerals, and agricultural products to China. Amid recent global tensions, including U.S.-China rivalry, Pakistan relies on Chinese economic support to bolster its economy, diversify its trade, and strengthen its strategic autonomy; here we must keep in mind that U.S. has been Pakistan’s largest export destination since decades. This implies that how is Pakistan balancing its ties with both major powers. In an era of intensified U.S.-China rivalry with each passing year, Pakistan’s strategic autonomy could be compromised if it leans excessively toward either side. Embracing a neutral stance in this geopolitical competition allows Pakistan to avoid being drawn into the crossfire of great-powers power politics, particularly as tensions mount in the Asia-Pacific and Indian Ocean regions. Pakistan can assert its independence in foreign policy while avoiding punitive measures from either Washington or Beijing through this diplomatic balance. This neutrality also empowers Pakistan to act as a mediator in South Asia thus, contributing positively to regional stability, which aligns with its long-term national security and development goals.

Pakistan’s national interest lies in continuing this balancing act between the U.S. and China. Undoubtedly, U.S. will remain an essential partner for defense and security and China’s investments are vital to Pakistan’s economic aspirations. Pakistan’s unique position between the U.S. and China also opens the door for it to advocate for multilateralism in addressing global and regional issues. Islamabad must pursue a path of pragmatic diplomacy that fosters strategic partnerships without compromising its sovereignty. Through careful management of its relations with both Washington and Beijing, Pakistan can strive for a future where it leverages its geopolitical position to advance its economic and security interests. In a world marked by shifting alliances and emerging rivalries, Pakistan’s diplomatic deftness will be the cornerstone of its national resilience and prosperity however, the essence of it lies only and only in Pakistan’s skillful diplomacy and careful management of bilateral relationships with both the two competitors of the 21st century.

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