16 May 2025, NIICE Commentary 10932
Bharat Raju
The allies of China and Pakistan have been described as “iron brothers” ever since they established their partnership. China has consistently supported Pakistan at international gatherings like the UNSC (United Nations Security Council) as well as the FATF (Financial Action Task Force), even when Pakistan was being accused of indulging in terrorist elements. This attitude has raised concerns around the world, especially for India and the US. To understand their motives, one has to look at the geopolitics, economics, and strategy of Sino-Pak relations and how those define China’s diplomacy at multilateral forums.
Historical and Strategic Context of Sino-Pak Relations
The partnership between China and Pakistan started in the early 1950s, but it developed much further during the Sino-Indian War in 1962. Ever since, China has used Pakistan to counter India, which is another competitor in the region. Strategic cooperation, military trust, and mutual suspicion of India form the backbone of their relationship.
Becoming one of the earliest Muslim countries to embrace China and it has supported Beijing on constantly sensitive topics of Taiwan, Tibet, Xinjiang, and, more recently, Hong Kong. In turn, China has openly backed Pakistan during conflicts, notably its disputes with India in the 1965 and 1971 wars. The strategic depth China receives from Pakistan is virtually immeasurable. With India as a rival, China regards Pakistan as critical to balancing regional power and projecting influence in South Asia.
Economic Interests: The China-Pakistan Economic Corridor (CPEC)
Among the strongest drivers of China's intensified engagement with Pakistan is the China-Pakistan Economic Corridor (CPEC), which is a flagship initiative under China's Belt and Road Initiative (BRI). Initiated in 2015, CPEC focuses on linking China's Xinjiang province with Pakistan's Gwadar Port in Balochistan through a system of roads, rail, and pipelines. CPEC is pegged at more than $60 billion in investments and provides China with a direct link to the Arabian Sea, avoiding the longer and risk-prone sea route via the South China Sea and the Malacca Strait. This new route will be crucial for China's energy supplies and trade diversification. Therefore, Pakistan is strategically important as not only a geopolitical partner but also as a transit and trade centre.
In order to protect CPEC, China needs political stability and security within Pakistan. Destabilisation, particularly due to terrorist attacks in Balochistan or along the corridor route, will risk the success of China's enormous investments. Ironically, this has rendered China both supportive and protective of Pakistan, despite the fact that the country is grappling with extremism and terror financing concerns.
China’s Stance at the United Nations Security Council (UNSC)
In the UNSC, China has consistently defended Pakistan from the international community's doubts about terrorism. One of them was China's blocking of Masood Azhar, the leader of the Pakistan-based Jaish-e-Mohammed (JeM), from being designated as a global terrorist by the UNSC's 1267 Sanctions Committee. In spite of overwhelming proof and backing from 14 out of 15 members, including permanent members such as the U.S., U.K., and France, China invoked the veto power to stall the listing for years before eventually giving in 2019 due to increasing pressure from around the world. These actions have given rise to questions of China's intention to be serious about counter-terrorism. But China's defence of Pakistan is not done from ideological sympathy but realpolitik. Beijing is reluctant to undermine a strategically important ally. It also does not want to contribute to Islamabad's diplomatic isolation for fear that cornered Pakistan will become unstable or will fall out of China's orbit.
China is afraid of any precedent being set against itself in the future. If Masood Azhar is banned at India's behest, what prevents similar action against entities in Xinjiang or Tibet in the future? Hence, China wants a case-by-case, bilateral solution and not multilateral action that could be turned against it later.
China and the Financial Action Task Force (FATF)
The FATF is a body of governments that regulates worldwide standards for anti-money laundering (AML) and counter-terrorist financing (CTF). Pakistan has been on the FATF grey list since 2018 owing to its inability to stop terror financing and take decisive action against UN-named terrorists operating from its land. China, along with Malaysia and Turkey, has frequently stood by Pakistan in the FATF discussions, from becoming blacklisted, which is a step that would have imposed serious financial penalties and severely weakened Pakistan's already vulnerable economy. Although China publicly professes to stand behind global anti-terror norms, its offstage support for Pakistan has been visible at the FATF plenary meetings.
Beijing's reasoning here is two-pronged. First, an economically weak and or isolated Pakistan is bad for Chinese interests, particularly for CPEC success. Second, a blacklisting has the potential to induce Pakistan to try to secure more Western or Gulf financing, weakening Chinese leverage in Islamabad. China would rather maintain Pakistan's reliance on Chinese credit lines and infrastructure financing.
There is also a regional dimension. China views the FATF as an instrument of Western powers, especially the United States and allies, to exert pressure on nations under the pretext of financial regulation. In backing Pakistan, China indirectly defies Western hegemony in global financial monitoring organisations.
Geopolitical Calculations and Containment of India
One of the constant themes in Chinese backing for Pakistan is the containment of India. As Indo-U.S. relations increase, engage in QUAD (Quadrilateral Security Dialogue), and have border tensions like the Doklam face-off and the 2020 Galwan conflict, China perceives India as a strong regional competitor. Pakistan acts as a strategic hedge. A militarily and diplomatically supported Pakistan ensures that India remains preoccupied on two front that is its western border with Pakistan and the eastern border with China. By supporting Pakistan on international platforms, China ensures New Delhi’s regional ambitions are constantly checked.
This balancing act also supports China's larger aspirations in Asia. Beijing is eager to replace the U.S. as the regional power in the Indo-Pacific and create a China-led world order, backing Pakistan diplomatically at platforms like UNSC and FATF supports China in pushing against U.S.-supported initiatives and projecting itself as a rival pole of global governance.
Criticism and Double Standards
China's continued backing of Pakistan, even in the presence of credible evidence of state-sponsored terrorism, makes Beijing liable for double standards. China needs international cooperation to suppress separatism and extremism in Xinjiang and hopes to receive assistance on its "core issues," yet it does not apply the same principles to other nations provoked by terrorism, particularly India and Afghanistan. This contradictory policy erodes international anti-terrorism efforts and weakens China's reputation as a responsible world power. It also creates resentment among nations directly hit by cross-border terror from Pakistani territory.
Conclusion
China's continued backing of Pakistan on terror issues in the UNSC and FATF is not motivated by ideological sympathy but by strategic considerations. From guaranteeing the success of CPEC to pushing back against India and maintaining leverage in South Asia, China has several interests in Pakistan's stability and international prestige.
While this aid benefits China in its strategic interests in Central Asia, it has a cost for global anti-terrorism norms and is ethically problematic with regard to how Chinese support could be enabling state-sponsored extremism. Ultimately, if China wishes to be considered a world leader, it must weigh its strategic interests against good multilateral behaviour, especially where terrorism is concerned—a threat to no border.
S Bharat Raju is a Research Intern at NIICE at currently pursuing an MA in International Relations at Loyola College, Chennai, India.
