CHINA'S GROWING CONCERN OVER U.S. REGIONAL

C O N F I D E N T I A L ISLAMABAD 000997 SIPDIS E.O. 12958: DECL: 05/09/2019 TAGS: PGOV PREL PTER ETRD PK SUBJECT: CHINA'S GROWING CONCERN OVER U.S. REGIONAL INFLUENCE Classified By: CDA Gerald Feierstein, for reasons 1.4 (b) (d) ¶1. (C) Summary. In a rare public statement about the U.S., Chinese Ambassador to Pakistan Lou Zhaohui told reporters on May 7 that China is concerned about increasing U.S. influence in the Af-Pak region. He noted that China is cooperating with both Pakistan and the U.S. on counterterrorism and said China and Pakistan are developing a joint counterterrorism strategy. Lou underscored China's investment in Pakistan and interest in a long-term strategic partnership. End Summary. ¶2. (U) Chinese Ambassador to Pakistan Lou Zhaohui told reporters that China is "concerned over increasing U.S. influence" in the region. Lou made the remarks during a visit to the Islamabad Chamber of Commerce and Industry on May 7. He stated that the number of foreign forces in the region is "too high" and that U.S. strategy needs "corrective measures" to contain terrorism. ¶3. (U) Lou noted, "We are cooperating with the U.S. and Pakistan in the fight against terror." He cited China's own struggle with militants in western China, claiming the militants had received training in Pakistan's Federally-Administered Tribal Area and Afghanistan during the 1980s. He also stated that China is "in close liaison with the Interior Ministry for the security of over 10,000 Chinese engineers and technical experts in Pakistan." He said that Chinese officials were discussing a joint counterterrorism strategy with Pakistani counterparts. ¶4. (U) As evidence of China's commitment to investment in Pakistan, Lou claimed there are over 60 Chinese companies operating in Pakistan carrying out 122 projects involving about 10,000 Chinese engineers. Lou also expressed interest in enhancing cooperation on hydroelectric projects and agriculture. Establishing a long-term strategic partnership with Pakistan is one of China's top priorities, he added. ¶5. (C) Comment. Lou's remarks came on the same week as the U.S.-Pakistan-Afghanistan trilateral meetings in Washington. Also the same day, it was reported that Pakistan's Ambassador to China presented four Chinese officials the Hilal-i-Pakistan, Pakistan's highest civil award--the same one presented to SCA Assistant Secretary Boucher. In his remarks at the event, the Pakistani Ambassador stated, "Pakistan's one true friend is China." We are not surprised that the Pakistani MFA would be reaching out to reassure Beijing of its continued importance despite renewed U.S. interest in Pakistan. There may be a simple explanation for the usually circumspect Chinese to speak out suddenly on their "concerns" regarding U.S.-Pakistan relations, especially in front of this particular audience; as the multi-million dollar decision to purchase Chinese locomotives over a competing GE-Marubeni bid comes under increasing scrutiny for alleged Chinese bid irregularities, the Chinese may be feeling increasingly pressured in their key commercial relationships here and are decidedly uncharitable about it. End Comment. FEIERSTEIN