An article in China's official Global Times (February 21) cautioned that "India and Pakistan need to avoid engaging in a trade war that will deal a blow to their own economies as well as that of China". Stating that Pakistan was reported to be considering a ban on the imports of some Indian products, as a protest against India's earlier move to withdraw MFN status to Pakistan, it said a trade war will only complicate the situation. Observing that "The Indian and Pakistan economies will soon feel the pain of a trade war" if they further escalate economic tensions, it said " Pakistan mainly imports cotton, chemicals and iron from India - materials that are vital for industry - while India imports fruit, cement and leather from Pakistan. Although their total trade is small, bilateral economic ties are more significant than some people realize". Saying that India and Pakistan have "a strategic location along a key international trade route" and could make themselves a regional logistics hub, it said if, however, "the two countries isolated themselves from one another, their strategic significance to economies in the region, China included, will be reduced". Describing China as "an onlooker of the ongoing India-Pakistan conflict" and a participant in the South Asian economy and "important economic partner of both India and Pakistan", it said "China is willing to make efforts to promote India-Pakistan economic cooperation". The article added that "Economic cooperation among the three countries still has great potential to generate growth, which will eventually help crack down on terrorism".
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