China's President Xi Jinping Meets with Pakistani President Asif Ali Zardari in Beijing

Highlights

• China and Pakistan meet in Beijing to enhance collaboration in trade, science, technology, and the China-Pakistan Economic Corridor (CPEC).
• CPEC expands strategic partnership with a focus on mineral exploration, particularly rare earth elements in Khyber Pakhtunkhwa.
• China seeks to strengthen its global economic position through strategic investments and mining cooperation with Pakistan.

China and Pakistan’s leaders met in Beijing, China, to promote the China-Pakistan Economic Corridor (CPEC) and enhance bilateral collaboration in trade, science, and technology. China’s mission to expand and bolster its economy, ultimately growing bigger than the United States, is based on its ever-growing trading network worldwide.

The recent news was distributed via China Daily (opens in a new tab), an English-language newspaper owned by the Central Propaganda Department of the Chinese Communist Party. The newspaper often reflects the party's perspectives and policies. 

The CPEC, a flagship project under China's Belt and Road Initiative, aims to enhance connectivity and economic integration between the two nations. However, it has faced challenges, including security concerns, due to attacks on Chinese workers in Pakistan. In recent months, militant attacks targeting Chinese investments have led to calls from Beijing for Islamabad to bolster security measures to protect Chinese citizens and projects.

Rare Earths & Critical Minerals

CPEC's expansion has implications for critical minerals and rare earth elements. Pakistan is rich in various minerals, including rare earth elements essential for modern technologies. China's involvement in Pakistan's mining sector through the CPEC could potentially strengthen its position in the global rare earth market, where it already holds a significant monopoly when it comes to processing and value-added production.

As mentioned above, China is actively involved in Pakistan's mineral sector, including critical minerals and REEs. In June 2024, China and Pakistan agreed to strengthen their cooperation in mining. (opens in a new tab) They plan to promote Chinese firms' investment in Pakistan's mining industry and develop mining industry parks, including deep processing of ores.

Pakistan has identified eight key areas in Khyber Pakhtunkhwa for REE exploration, spanning a 200-kilometer stretch from Mansehra to the Pakistan-Afghanistan border. As reported in various media, such as PROFIT, Pakistan seeks technical expertise, particularly from China, to unlock this potential as PROFIT.

Additionally, the Saindak Copper-Gold Project in Balochistan is operated by the Metallurgical Corporation of China Ltd (opens in a new tab). (MCC), producing copper, gold, and silver.