China Rolls Over $3.4 Bn Loan To Pakistan, Battles U.S. For Influence In S Asia

China Rolls Over $3.4 Bn Loan To Pakistan, Battles U.S. For Influence In S Asia

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Business Today
  • Updated Jul 1, 2025 2:38 PM IST

 

China has rolled over $3.4 billion in loans to Pakistan, raising Islamabad’s forex reserves to $14 billion. But this move is more than just financial aid—it's a strategic signal in the growing US-China rivalry. With the China-Pakistan Economic Corridor giving Beijing a critical trade route, and the US leveraging military ties, Pakistan finds itself at the heart of a power struggle. While Trump hosted Pakistan's Army Chief at the White House, China continues to build influence with long-term investments. For India, this triangulation presents a serious two-front threat. As China and the US compete for control, Pakistan is playing its cards smartly—balancing both powers to its advantage.

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