China, Pakistan commit to CPEC Phase II; China, Russia, Mongolia enhance cooperation
Key Takeaways
- Xi and Sharif commit to CPEC Phase II, upgrade free trade agreement, ensure Chinese personnel safety.
- Xi, Putin, and Ukhnaa enhance cooperation, address external interference, discuss Power of Siberia 2.
- Malaysia secures BRI extension (ECRL 85% complete) and China's support for BRICS membership.
- China to launch 10 Luban Workshops in SCO countries, training 10,000 in advanced technologies.
- AD Ports Group invests $300M to expand Karachi port capacity to 1M TEUs by 2026.
Top Stories
Xi and Sharif commit to CPEC Phase II, stronger China-Pakistan ties.
On September 2, 2025, President Xi Jinping met with Prime Minister Shehbaz Sharif in Beijing, reaffirming commitment to strengthen China-Pakistan ties and advance CPEC's next phase. Discussions included upgrading the China-Pakistan Free Trade Agreement and ensuring the safety of Chinese personnel and projects.
China, Russia, Mongolia enhance cooperation, address external interference.
On September 2, 2025, Xi Jinping, Vladimir Putin, and Khurelsukh Ukhnaa met in Beijing to enhance trilateral cooperation. Discussions included infrastructure projects like the Power of Siberia 2 pipeline and addressing external interference amid global instability.
Malaysia secures BRI extension, BRICS support from China.
On September 2, 2025, Anwar Ibrahim met with Xi Jinping in Beijing, securing support for Malaysia's BRICS membership and an extension of the East Coast Rail Link (ECRL) under the Belt and Road Initiative, which is 85% complete.
China to launch 10 Luban Workshops in SCO countries.
On September 2, 2025, at the SCO meeting, President Xi Jinping announced China will launch 10 additional Luban Workshops in SCO countries over the next five years. These workshops aim to train 10,000 individuals in advanced technologies and vocational skills.
AD Ports Group invests $300M to expand Karachi port capacity.
AD Ports Group is investing nearly AED 1.1 billion (USD 300 million) to expand operations at Karachi Gateway Terminal, increasing container handling capacity to 1 million TEUs by early 2026 and doubling bulk vessel capacity, supporting Pakistan’s economic diversification.
China's Strategy
Sharif invites Chinese investment in Pakistan's B2B sectors.
On September 3, 2025, Prime Minister Sharif met with Chinese company executives in Beijing, urging them to invest in Pakistan's B2B sectors like textiles, IT, agriculture, and e-commerce, highlighting economic reforms and incentives.
Financial Flows
SCO offers Pakistan $281M grant, $1.4B loans for development.
Following the SCO meeting in Tianjin, China pledged $281 million in grant aid and $1.4 billion in loans to SCO member banks, offering new opportunities for Pakistan's financial sector, including improved access to regional credit lines and cross-border trade financing.
Project Updates
Pakistan, China to launch 11 specialized training programs under CPEC-II.
On September 3, 2025, Pakistan and China are set to sign 11 agreements to launch specialized professional training programs in Pakistan under CPEC Phase-II. These initiatives aim to train thousands of Pakistanis in advanced technical and vocational fields.