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Pakistani President to visit China after killings
(Reuters)
Updated: 2006-02-17 20:54

CHANGING ECONOMIC TIDES

China provides hundreds of millions of dollars of development finance to Pakistan, and trade between the two countries rose to $4.25 billion in 2005 from $3.06 a year earlier.


Tan Aifeng (C), wife of Wei Jianping who is one of three Chinese engineers killed by gunmen in southern Pakistan, cries after hearing of the death of her husband in Shangrao, east China's Jiangxi province February 16, 2006. The victims, Long Hongbao, Wei Jianping and Zhao Bin, were shot along with three other colleagues when their car were attacked by gunmen on a road in the town of Hub, some 700 km (435 miles) southeast of Quetta. [Newsphoto]

A free trade agreement is being negotiated and China and Pakistan aim to push trade past $8 billion by 2008.

Musharraf will address a business forum on Tuesday which will aim to promote possible ventures in communication, energy, mineral and textile sectors,.

But violent scenes during protests this week over cartoons in Europe depicting the Prophet Mohammad will hardly be comforting for would-be investors, analysts noted.

"People who have been to Pakistan know it's people are very friendly, but the shootings and the cartoon incidents may shake investors, including Chinese," said Zhang Li, an expert on China-South Asian relations at Sichuan University.

China has also been a key supplier of arms to Pakistan, though since Musharraf supported the U.S.-led war on terrorism after the September11 attacks on New York and Washington, the United States has re-emerged as major source of arms.

Pakistan has in the past looked to its friendship with China to counterbalance its rivalry with India.

But ties between New Delhi and Beijing have also been warming in recent years as Asia's two giants realize their economic potential, while Pakistan has trailed.

"The overall relationship is strong, but trade and economic ties have lagged behind, especially compared to China-India trade," said Zhang.


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