Three cheers to hit and run for bringing some depth to this discussion. China has been consistent about idea of "win win situation" meaning that if all neighbors put business and trade at the forefront ..the minor irritants such as border disputes can be solved down the road. Educated and prosperous nations can talk more logically and can see the big picture. The problem with Pakistan is there is no central authority to chart a clear foreign policy course...on one side is Nawaj Sharif who agrees with Xi and Modi that trade is the priority BUT on the other hand ..there are still powerful elements in Paki Army (plus Musaffarites) who want to stay in the past policy of licking the butts of USA+KSA and keep enriching themselves by playing the role of hired guns to poke India..
The same policy that they have been following for decades and getting lots of dollars and weapons from West.
West would love to pit India against China as part of its "china containment policy" but likes of Modi does not want to make India a vassal state of the West. In this case, for West ..Pakistan still remains a strategic asset which potentially can be used against India or China or Russia,if needed. With China, India and Russia on one side of the scale and trading with each other, West loses markets for most items including high tech weapons. Success in pitting India and China against each other works well for current G-7 world order and the hegemony can be continued for another several decades. If not, the hegemony is in serious danger.