China and Pakistan have increased their cooperation on infrastructure development in Kashmir, where the two countries have individual territorial disputes with India. On Wednesday, Islamabad approved a US$6.8 billion dollar upgrade to a rail line in the region as part of the multi-billion dollar China-Pakistan Economic Corridor.

“China border tensions with India have to an extent strengthened Pakistani resolve, but China is not out there beating the drum (of war),” said Dr James Dorsey, a Senior Fellow at the S. Rajaratnam School of International Studies in Singapore. It’s a double-edged sword for China. “China has serious investment in Pakistan, and a vested interest in calm in the country.”