THURSDAY MAY 23: Li talks of 'economic corridor'

27 May, 2013

ISLAMABAD: Chinese Premier Li Keqiang Wednesday linked growth in his country's restive west with that in sluggish Pakistan, saying the two sides wanted to create an "economic corridor" to boost development. Li, on his first overseas trip since taking over in a once-in-a-decade power transfer in Beijing, congratulated Pakistan on its recent general election and hailed the countries' long-standing friendship.
The Chinese leader held talks with President Asif Ali Zardari and officials signed a series of memorandums of understanding on economic, science, technology and energy issues. Prime minister-elect Nawaz Sharif, set to meet Li on Thursday, will doubtless be hoping the visit leads to closer trade ties after his Pakistan Muslim League-N (PML-N) party swept to victory in the May 11 general election on a promise to revitalise the struggling economy.
Li said China's desire to boost domestic demand and develop its western region would benefit Pakistan as it seeks to restart its foundering economy. "Both sides are of the view that by connecting China's development and Pakistan's development, we can create a joint economic corridor linking the central and western parts of China and Pakistan," he said.
"This vision, once realised, will have great strategic significance for the development of China, South Asia and of peace and stability in the region and the improved lives of people in our region." China's western region of Xinjiang sees frequent clashes between mainly Muslim Uighurs and Han Chinese, and Beijing has blamed extremists trained in Pakistan for some of the violence. There are an estimated 10,000 Chinese people and more than 120 Chinese companies in Pakistan, many working on infrastructure and energy projects. Beijing built two nuclear power plants in the country and is contracted to construct two more reactors.
Li was met by Zardari on the tarmac at Nur Khan air base in Rawalpindi next to Islamabad when he flew in from India, where he promised to open China's vast domestic market wider to Indian goods. Former ambassador to the United States Tariq Fatemi said the visit was crucial in drawing the economic roadmap for the incoming government.
"Normally foreign visitors don't go to countries during the interim set-ups, but China has recognised that the visit to Pakistan is necessary even at this stage, and that is why they have organised a separate one-on-one meeting with Nawaz Sharif," Fatemi told AFP. After Pakistan, Li's tour takes him on to Europe for visits to Switzerland, with which China is negotiating a free trade agreement, and Germany, its largest European trading partner.

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