Issues
The ETIM is a Waziri based mujihadeen organization that is said to be allied with the Taliban, which has received funding from rogue elements in the ISI. As these militants are labeled as terrorists from the Chinese province of Xinjiang, Pakistan's inability to prevent this is a potential source of conflict.
The U.S. War On Terror has the Chinese wary of U.S. influence in the region, and as Pakistan is a US ally and major recipient of US military and economic aid, China is obligated to step up its support in order to maintain its influence in the region.
Read more about this topic: Sino-Pakistani Relations
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