Chinese leader Xi Jinping is under increased pressure to better protect his country's interests in volatile parts of the world after a bomb attack by Pakistani separatists last month claimed the lives of two Chinese engineers.
With total Chinese investment estimated at $62 billion, the China-Pakistan Economic Corridor is the largest group of projects under Xi's Belt and Road Initiative, but a surge in violence from of the Balochistan Liberation Army puts this commitment at risk and fuels debate over Beijing's failure to tackle the problem.
While Chinese investors are protected by a mix of Pakistani government and private Chinese security services, the latter is hampered by Pakistan's ban on armed guard services by foreign security contractors and Beijing's tight grip. on military and police functions, even abroad.
I think this is the tipping point where Beijing demands something more from Islamabad in terms of the Chinese role in security, said Alessandro Arduino, a security expert in the BRI and private security contractors.
The developments in Pakistan will also provide a litmus test for Chinese private security companies around the world, as well as how Beijing wants to secure its citizens and assets around the world.
Islamabad has dedicated large and growing forces to protect China's massive investments. Two special security divisions numbering more than 15,000 troops in total and a naval unit stationed at Gwadar port protect CPEC projects and Chinese workers across Pakistan. The provinces also provided special police units. Part of the cost of this protection is covered by the Chinese Ministry of Defense, according to two people familiar with the matter. But that hasn't brought the security China hopes for.
We don't believe more Pakistani soldiers will keep us safe…we would prefer it to be Chinese, said a Chinese businessman who is working on a project in Punjab province but has been in the country for nearly 'a decade. Many Chinese people want to leave, there are not many opportunities and the security is bad.
These concerns were further heightened when a Pakistani security guard shot and injured two Chinese workers in Karachi last week.
Beijing is not satisfied with local security either. The central government issued an internal directive to let the Chinese take care of the security of the Chinese, said Zhou Chao, a Chinese executive who managed security services for the Lahore Metro Orange Line project after China Railway Group and Chinese arms exporter Norinco won the tender in 2015.
Chinese private security companies typically follow state-owned companies to monitor their overseas construction and resource projects. Some observers expected them to become the equivalent of U.S. military contractor Blackwater or Russian mercenaries Wagner Group, but Chinese experts say they are held back by a lack of support from Beijing and complex regulations.
Pakistan prohibits foreign security companies from providing armed guard services. As a solution, we would station Chinese security guards at the project company, two at a time, and hire 400 to 500 local guards, said Zhou, who worked for China Cityguard at the time but has since joined the China Soldier Security Group.
Other executives said they relied on Chinese security engineers to develop a security plan, handle incidents, conduct background and document checks, gather intelligence and hire local guards for armed patrols.
The October blast, the latest in a series of attacks, fueled discontent with the current security system. Our government discussed with Pakistan whether it could allow Chinese security companies in, but was explicitly rejected several times, a Chinese leader said.
In a joint statement with Pakistan during Chinese Premier Li Qiang's visit on October 15, China stressed the urgent need to adopt targeted security measures in Pakistan to jointly create a secure environment for cooperation between two countries. Last week, Chinese Ambassador Jiang Zaidong called it unacceptable that Chinese citizens had been attacked twice in six months. He warned that security had become a constraint for CPEC.
While China's overall financing and investment commitment under the BRI increased last year, according to the Ministry of Commerce, it fell by 74% in Pakistan. Frontier Services Group, the security firm backed by Blackwater founder Erik Prince, said in its 2023 annual report that due to instability in Pakistan, the Chinese government had encouraged employees of Chinese companies in Pakistan to return home. This led to delays and aborted projects.
The government fails to completely resolve this security problem. [Our] risk consultants in Pakistan warned us about certain things, which actually happened afterwards, and I don't know why our government couldn't prevent them, said a top executive Chinese security company.
A major obstacle lies in the belief of the Chinese Communist Party, which came to power through an armed revolt, that it must maintain a strict monopoly on military and police functions. Beijing maintains strict restrictions on private security companies in its country, including a ban on carrying weapons. Although existing legislation does not explicitly cover the expansion of entrepreneurs abroad, it has hindered them.
According to Cheng Xizhong, a South Asia expert at the Chinese think tank Charhar Institute and a former diplomat and defense attaché who also advises Chinese private security firms, the Chinese embassy in Islamabad has a senior advisor. police that tells security companies in Pakistan what should and should not be. do.
Some people view Chinese security contractors who go abroad as proxies for the Chinese People's Liberation Army, a security company executive said. But unlike international military contractors who thrive on government contracts… we receive no… support.
The latest surge in casualties could increase pressure on Beijing to update legislation governing private security companies. The amendments should include clearer reference to overseas operations and be guided by an international code of conduct for the industry, according to academics consulted on the draft amendments.
Much of our overseas investment is directed to countries they deem high risk, said the founder of a Chinese private security company. It is therefore high time that our government gave us the means to develop there.
Additional reporting by Tina Hu and Wenjie Ding in Beijing
