The successful conclusion of counter-terrorism exercise between the special forces of China and Pakistan was the leading story of this week. Pakistan and China launched a web portal about the China-Pakistan Economic Corridor (CPEC). Chinese Commander of the People’s Liberation Army (PLA), Western Theatre, General Zhao Zongqi met the Army Chief General Qamar Javed Bajwa at General Headquarters (GHQ) Rawalpindi. Pakistan Navy has established ‘Task Force-88’ (TF-88) for the seaward security of Gwadar port and protection of associated sea lanes. The second round of the negotiations of the second phase of China-Pakistan Free Trade Agreement (FTA) was held on December 6-7 in Islamabad. Pakistan and China inked the third protocol to the Avoidance of Double Taxation Agreement. The Secretary General of Jamiat Ulema-i-Islam-Fazal (JUI-F), Ghafoor Haideri has urged the government to address the reservations of KP and Balochistan on CPEC.

Warrior-4 Exercise:

The two-month long Pakistan-China exercise ‘Warrior-4’ focused on high impact counter-terrorism operations both in rural and urban areas came to conclusion at the National Counter-Terrorism Center (NCTC) at Pabbi on Thursday. Chief of Army Staff (COAS) General Qamnar Javed Bajwa visited NCTC to witness the concluding session of the exercise between the special forces of both the countries.[1] In his speech the COAS said that shared experiences had improved the counter-terror combat skills of both Chinese and Pakistani forces and had also integrated the armies of the two countries. Later the Chinese Military Commander praised the Pakistan Army for its highest standard of training and skills and said that it was an asset that China would continue to benefit from.[2] Though far lower in scale as compared to that of Pakistan, China also has witnessed terrorist activities in the western region of Xinijang. Against this backdrop, joint counter-terrorism exercises with Pakistani forces which have extensive experience in the field have proved a valuable practice for China.

CPEC Website:

A website (cpecinfo.com) with the purpose of providing information about CPEC was launched in Islamabad on Tuesday. Chairman of the Parliamentary Committee on CPEC, Senator Mushahid Hussain Syed, and the Chinese Ambassador Sun Weidong participated in the inaugural ceremony.[3] The Chinese envoy said that “[T]his new website will become an important source of comprehensive information for all the people who want to learn about CPEC.”[4] He added that 10,000 locals got employed by 17 projects of the CPEC.[5] Senator Mushahid also addressed the participants and highlighted the importance of the corridor. It is the second website about CPEC as the Ministry of Planning Development and Reform already runs a webpage with information about this project.

Zhao-Bajwa Meeting:

Chinese Commander of the People’s Liberation Army (PLA), Western Theatre, General Zhao Zongqi met the Army Chief General Qamar Javed Bajwa at General Headquarters (GHQ) Rawalpindi. He congratulated General Bajwa on assuming the command of Pakistan Army.[6] According to Inter Services Public Relations (ISPR) statement, the two generals discussed the issues of regional security and matters of professional interest. General Qamar reaffirmed that Pakistan Army will provide unwavering support for the security of Pakistan-China Economic Corridor (CPEC). On his arrival at the GHQ, the General Zhao was presented a guard of honor by a smartly turned out contingent of the army. Later on, he laid a wreath at Yadgar-e-Shuhada to pay homage to the martyrs of Pakistan Army.

Gwadar Port Special Force:

According to daily Dawn, Pakistan Navy has established ‘Task Force-88’ (TF-88) for the seaward security of Gwadar port and protection of the associated sea lanes against both conventional and non-conventional threats.[7] A senior Pakistan Navy official was quoted as saying that the TF-88 would comprise ships, Fast Attack Craft (FAC), aircraft, drones and surveillance assets. In addition, marines would be deployed at sea and around Gwadar for security operations. This special force would be commissioned this week.  The creation of TF-88 was necessitated by the operationalization of Gwadar port in November which will lead to surge in maritime activity in the future and consequently require increased security. There has been a potential threat of disruption by India which has shown serious reservations against the Chinese engagement in the Gwadar port. Last month, Pakistan Navy had foiled the attempt by Indian submarines to enter into Pakistan’s territorial waters.

FTA Negotiations:

The second round of the negotiations of the second phase of China-Pakistan FTA was held on December 6-7 in Islamabad. The meeting was co-chaired by Joint Secretary Commerce Taimur Tajaml and Chen Zhiyang, Division Director Ministry of Commerce China. However, the two countries could not develop consensus on the methodology to further expand the second phase of FTA.[8] Pakistan had asked for revision of the terms of the first FTA that was implemented in 2007. It has led to increasing trade deficit between the two countries as Pakistan’s imports from China have outpaced the Pakistani exports by a large margin. China is the biggest trade partner of Pakistan.With bilateral trade of nearly $15 billion, the trade deficit of Pakistan with China stood at $9.1 in 2015.[9] The head of the Chinese delegation expressed his hope to resolve the outstanding issues through mutual consultation and finalize the second phase of FTA at the earliest time possible.

Miscellaneous:  

Pakistan and China inked the third protocol to the Avoidance of Double Taxation Agreement.[10] Chairman Board of Invetment, Miftah Ismail, has claimed that after the completion of CPEC, Chinese investors would bring around $150 billion of investment to Pakistan.[11] The Secretary General of JUI-F, Ghafoor Haideri has urged the government to address the reservations of KP and Balochistan on CPEC.[12] Prime Minister Nawaz Sharif appointed Asim Saeed as new Project Director of CPEC.[13]

This report is compiled and written by Abdur Rehman Shah, Research Associate at the Center for Research and Security Studies (CRSS), and edited by Zeeshan Salahuddin, Senior Research Fellow at CRSS, Islamabad.

[1] Our Correspondent. (2016, December 9). ‘Joint experiences improve counter-terror skills’. Retrieved on December 13, 2016, from http://epaper.tribune.com.pk/DisplayDetails.aspx?ENI_ID=11201612090084&EN_ID=11201612090033&EMID=11201612090013

[2] APP. (2016, December 9). Army Chief witnesses Pak-China drill at counter-terror training center. Retrieved on December

, from http://epaper.dawn.com/DetailNews.php?StoryText=09_12_2016_005_009

[3] Shakeel, Madiha. (2016, December 7). China’s envoy says 10,000 local people given CPEC jobs. Retrieved on December 13, 2016, from http://www.brecorder.com/pakistan/business-a-economy/330829-chinas-envoy-says-10000-local-people-given-cpec-jobs.html

[4] Kawal, Maheen. (2016, December 7). CPEC official website unveiled. Retrieved on December 13, 2016, from https://www.techjuice.pk/cpec-official-website-unveiled/

[5] Geo News. (2016, December 6). CPEC website’s launch held in capital. Retrieved on December 13, 2016, from https://www.geo.tv/latest/122821-CPEC-websites-launch-held-in-capital

[6] Our Correspondent. (2016, December 6). Chinese Commander meets General Qamar. Retrieved on December 13, 2016, from http://tribune.com.pk/story/1254682/chinese-commander-meets-gen-qamar/

[7] Our Staff Reporter. (2016, December 12). Special force set up to guard Gwadar port’s sea lanes. Retrieved on December 13, 2016, from http://epaper.dawn.com/DetailNews.php?StoryText=12_12_2016_001_007

[8] Ghumman, Mushtaq. (2016, December 9). Pakistan China to develop consensus on FTA. Retrieved on December 13, 2016, from http://www.brecorder.com/top-news/pakistan/331122-pakistan-china-failed-to-develop-consensus-on-fta.html

[9] Editorial. (2016, December, 10). Beyond CPEC. Retrieved on December 13, 2016, from http://www.dawn.com/news/1301492/beyond-cpec

[10] APP. (2016, December 10). Pakistan China ink taxation agreement. Retrieved on December 13, 2016, from http://epaper.tribune.com.pk/DisplayDetails.aspx?ENI_ID=11201612100235&EN_ID=11201612100095&EMID=11201612100037

[11] APP. (2016, December 9). Chinese investors to bring $150 billion after CPEC: BOI chief. Retrieved on December 13, 2016, from http://epaper.tribune.com.pk/DisplayDetails.aspx?ENI_ID=11201612090211&EN_ID=11201612090078&EMID=11201612090034

[12] Shahid, Saleem. (2016, December 9). Govt urged to remove KP, Balochistan’s reservations over CPEC. Retrieved on December 13, 2016, from http://epaper.dawn.com/DetailNews.php?StoryText=09_12_2016_005_005

[13] Rana, Shahbaz. (2016, December 8). PM approves appointment of CPEC coordinator. Retrieved on December 13, 2016, from http://tribune.com.pk/story/1256716/lucrative-positions-pm-approves-appointment-cpec-coordinator/