It is a matter of great interest to know that as a result of China's policy of development at home and abroad, it has already attained first position in Asia in the field of economy. Hopefully, in the future, it will emerge as the largest economy in the world, in purchasing power parity terms. In all the likelihood, China will surpass Japan as the second largest economy. Likewise, it will outshine the US in 2041 to acquire the top position in the world economies. The main reasons of China's spectacular success is that it has stuck to the policy of modest growth in military expenditures during the past three decades with its military expenditures of only US$60 billion in 2003. By the year 2030, China's military expenditures is expected to increase to US$238 billion as against US$808 billion in the case of the US. In view of these facts, it becomes abundantly clear that China will acquire a preponderance weight in the world economic structure within the next two to three decades, and so the presumption that it succeeds in maintaining its current high growth rates. Hopefully, in years to come, all-important decisions regarding global economic issues will be possible only with China's concurrence. However, although China's military power will increase rapidly in the next two decades, the US will remain the sole superpower during that period. Seen in the backdrop of Pak-China relations, we feel convinced that China's rise as a major economic and military power will augur well for us as it will substantially help Pakistan in guiding its destiny. However, the most important lesson for us to learn is that if Pakistan wishes to emerge as a developed and powerful country, it must accord the highest priority to the goal of economic development. All other national goals could be suspended temporarily. However, to achieve positive results, maximum possible resources shall have to be allocated to economic growth. Military expenditures will have to be limited temporarily. By doing so, we will be following China's policy developed under the leadership of Deng Zioping in 1978 and implemented skilfully in the subsequent years. We can learn a lot from the experiences of China. Highlights of its successful policy were that China had embarked upon a course of rural and urban reforms subsequent to the 1978 campaign of raising the efficiency of the economy. In addition, it had raised its national savings and investment rates subsequently to accelerate its economic growth. In the ultimate analysis we learn that economic growth is the function of the national savings and investment. The higher the rate of national savings and investment in production sectors, the faster is the rate of economic growth. China now saves and invests almost 50 percent of its GDP providing the underpinning for its rapid economic growth. In contrast, Pakistan's national saving rate was estimated to be only 14 percent in 2007-08. The need therefore is for us to adopt austerity to raise our national saving and investment rates to 30 percent of the GDP. Also we must pay more attention to human resource development, especially education and health, to improve the long-term prospects of our economic growth. In addition, our economy is in dire need of fiscal, monetary and structural reforms to unleash its energy and raise its productivity. Pakistan must closely observe the phenomenal rise of China's power and stature with a view to safeguarding its national security and promoting its political and economic interests. In particular, Pakistan should keep a close eye on the emerging trends in China's relations with the US, India and Russia. This will provide us a clue to the future shape of international politics in the 21st century. It is a matter of great satisfaction to note that Pak-China friendship has served the strategic interests of both the countries. Hopefully, this friendship will assume the growing importance against the background of the US effects to contain China through building up India as its counterweight and Pakistan's necessity to balance India's growing power through a strategic partnership with China. In view of these ground realities, it is imperative for Pakistan to attach the highest cooperation with China, particularly in political, economic, commercial, military and cultural fields. Presently, our trade with China is lagging far behind the Sino-Indian trade which is expected to reach the target of US$60 billion by the year 2010. Concerted efforts on our part are required to substantially boost our trade. Situation as it exists today leaves plenty of scope for improvement. The writer is a retired colonel