Chinese Investors in Pakistan Withdraw Harassment Petition Amid Growing Tensions

Chinese investors in Pakistan have withdrawn a petition filed last week in a local court, which accused police of harassment under the guise of providing security. Though the petition was retracted within days, it marks an unprecedented legal move by Chinese nationals in Pakistan and could further shake investor confidence in the country.

Pakistan has enforced stringent security measures for over 20,000 Chinese nationals working in the country following multiple attacks against them. Since 2021, 20 Chinese nationals have been killed and 34 injured in 14 separate incidents, according to Pakistan’s National Counter Terrorism Authority. However, these security arrangements—demanded by Beijing—are now causing friction.

Six Chinese investors, primarily involved in medium-sized manufacturing and raw material imports, filed the petition in the Sindh High Court last Friday. They alleged police harassment, movement restrictions, and corruption, including demands for bribes upon arrival at Karachi’s airport. The petition, seen by Nikkei Asia, stated that Chinese nationals were being detained in their residences without clear legal justification, severely disrupting their business operations.

“If the Chinese, who traditionally avoid publicizing grievances, are taking legal action at a provincial apex court, it highlights the severity of the issue,” said Ghulam Ali, deputy director at the Hong Kong Research Center for Asian Studies.

The Sindh government defended the security protocols, with police chief Ghulam Nabi Memon stating, “Certain Chinese nationals associated with projects outside the China-Pakistan Economic Corridor (CPEC) seek unrestricted movement, but we cannot compromise their security.”

By Tuesday evening, the Chinese investors withdrew their petition following assurances from top Sindh and federal officials that their concerns would be addressed. However, a government official, speaking anonymously, noted, “Through this petition, the Chinese have sent a clear message—they will not tolerate further harassment in the name of security.”

Analysts believe this episode could accelerate China’s declining investment in Pakistan. “There have been no major new Chinese investments in Pakistan recently. The so-called ‘higher than the Himalayas’ relationship is gradually coming down to earth,” said Ali. Despite longstanding diplomatic ties, he added, China may maintain friendly rhetoric while scaling back its economic footprint in the region.