China's President Xi Jinping held wide-ranging talks with visiting Pakistani Prime Minister Imran Khan on Sunday in which they agreed to launch health, industry, trade, and digital corridors under the next phase of the China-Pakistan Economic Corridor (CPEC) — a multi-billion dollar project vehemently opposed by New Delhi, with the latter saying it directly "impinges on the issue of sovereignty and territorial integrity of India".
"The Chinese side reiterated that the Kashmir issue was a dispute left from history, and should be properly and peacefully resolved based on the UN Charter, relevant Security Council resolutions, and bilateral agreements. China opposes any unilateral actions that complicate the situation", one of the 33 paragraphs of a joint statement read.
The reference to Kashmir comes as both countries vociferously opposed New Delhi's move to bifurcate Indian-administered Jammu and Kashmir into two Union Territories in August 2019.
Both nations consider India's unilateral actions a violation of international agreements, such as the Simla Agreement and the Border Agreement 1993.
China also pushed to accelerate the construction and operation of Pakistan's Gwadar Port, which will provide an alternative shipping route to the Strait to Malacca — a strategic choke point in the Indian Ocean surrounded by close partners of the US, such as Singapore and India.
Eighty percent of China's energy imports from the Middle East pass through this point, making the supply vulnerable to a conflict with the US or India.
PM Imran Khan has made an all-out effort to China to secure the CPEC project and Chinese personnel. Nine Chinese nationals engaged in CPEC works were killed in suicide bombings last year, which Islamabad says was carried out with the support of India's external spy agency RAW.
China has also firmly supported Pakistan in safeguarding its sovereignty and fighting terrorism with more robust defence and security cooperation which they consider "an important factor of peace and stability in the region".
Over the past few months, China has stepped up the supply of military hardware, such as destroyers and fighter jets to the Pakistani military in a move to "balance the security dynamics" of the Indian Ocean region.
On Sunday, the post-meeting joint statement also "called upon the international community to provide continued and enhanced assistance and support to Afghanistan, including through unfreezing of Afghanistan's financial assets".
28 December 2021, 17:25 GMT
Last August, the Taliban's* return to power prompted the US and European nations to freeze more than $9.5 billion in assets from the Afghan Central Bank.
The two sides are also prepared to extend CPEC to Kabul, which will challenge India's ambitious connectivity project to Afghanistan and Central Asia using the port of Chabahar in Iran.
China has also committed to developing communications satellites for Pakistan and cooperating on the construction of the Pakistan Space Centre. In 2018, China helped Pakistan launch an optical remote sensing satellite and a smaller observation craft.
*The Taliban is under UN sanctions over terrorist activities.