Earlier, New Delhi had also protested against the construction of the Neelam Jhelum hydropower project and Bhasa dam in what it calls Pakistan-Occupied Kashmir, which is referred to as 'Azaad Kashmir' by Islamabad.

The dam, one of the eight hydel projects shortlisted for construction with a capacity to generate 7,000 MW of electricity, has triggered anxieties in India about growing Chinese activities in Pakistan-occupied Kashmir.

India and Pakistan have fought three wars over Jammu and Kashmir, which both countries claim.

Jammu and Kashmir is one of the issues the two neighbours are trying to resolve in their composite dialogue that New Delhi suspended in the aftermath of the Mumbai terror attack last year.

During his visit to Hang Zhou in Zhejiang province and Guangzhou Aug 21-24, Zardari sought Chinese participation in the development of hydel, thermal and solar energy projects, irrigation and fisheries and mobile telephone networks. Pakistani and Chinese companies have signed a slew of pacts in these areas.