An indication of this change in China’s foreign policy was seen in the speech delivered to the Pakistani National Assembly in December 1996 by President Jiang Zemin which expounded for the first time China's policy toward South Asia. Reiterating the close Sino-Pakistani relations President Zemin, however, stated the need for: “Properly handling existing disputes in the spirit of seeking common ground while setting aside differences … We should look at the differences or disputes from a long perspective, seeking a just and reasonable settlement through consultations and negotiations while bearing in mind the larger picture. If certain issues can not be resolved for the time being, they may be shelved temporarily so that they will not affect the normal state-to-state relations.”
What the Chinese President was telling his Pakistani hosts was that like China had started economic and cultural ties with India and “temporarily shelved” the border issues because they “cannot be resolved for the time being”, maybe Pakistan should try the same with India. The importance of this speech in Sino-Pakistan relations can be gauged from the fact that the Chinese Ministry of Foreign Affairs posted this speech as one of the ‘key documents’ which define China’s relations with Pakistan.?
From the 1950s China had always supported the Pakistani position on the Kashmir dispute. In the 1999 Kargil conflict, however, China took a stand similar to the United States. When Prime Minister Nawaz Sharif went to China, in the midst of the conflict, looking for support the Chinese asked him to resolve the conflict with India as they were not willing to interfere. China’s policy ever since has been to encourage India and Pakistan to solve their problems through negotiations and dialogue.