China Offers Nuclear Power

We believe President Asif Ali Zardari will move forward on plans for China to help Pakistan construct two additional nuclear reactors. Beijing and Islamabad have discussed a deal in which China will provide Pakistan with two nuclear reactors at the Chashma plant to help the latter overcome its severe energy shortages, which is hampering economic activity. The deal has provoked concern from the US. In may 2009 Pakistan denied it was expanding its nuclear arsenal, after the US accused it of doing so. Nevertheless, we do not see a marked deterioration in relations with the US resulting from the deal

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