In the changing world of international relations, economic cooperation is overriding the barriers of rivalry that kept enemies away from the fruits of bilateral cooperation. Nevertheless, security remains the main concern. Although, economic partnership has led the traditional rivals towards peace and cooperation, the constraints of ‘security assurance’ (the psychological satisfaction of maximum security against rivals) keep the threat of peace derailment and war alive.
A major portion of the economic development, achieved through economic cooperation, is diverted towards security enhancement; hence, the common person remains detached from the economic development. Further regional politics, again security being the key player, keep countries such as Pakistan into security dilemma. In such states as in case of Pakistan, despite low economic development a major portion of the national wealth is consumed on the defenses of the state.
This paper endeavours to study the changing equation of Sino-Indian rivalry through the framework of economic partnership and the interlinked constraint of “Security Assurance” against the either. It discusses as to what the growing economic partnership and the derived prosperity means for a common person. Further, it focuses on Pakistan’s case in the Sino-Indian rivalry. How the security dilemma has kept it away from economic cooperation and development. Pakistan’s attempt to gain maximum security against India has even deprived it from the benefits of economic cooperation with rising economic power china, which is also its traditional friend.