The agreement has been economically beneficial for Pakistan, as it has secured pastures in the agreement. However, it has been more politically important because it has reduced the risk of conflict between the two countries. India does not recognize that. The agreement was also very important for Cold War policy. It was part of a growing link between China and Pakistan, which began after the war between India and China. All of this has resulted in Pakistan being shaken by the United States. In addition, the two countries also concluded a bilateral agreement on trade and air transport after the definition of borders. The Sino-Pakistan Agreement (also known as the Sino-Pakistan Border Agreement and the Sino-Pakistan Border Agreement) is a 1963 document between the governments of Pakistan and China, which defines the border between these countries.  The Pakistan-China border agreement for the Pakistan-China border was signed in March 1963. This agreement has become quite controversial because of India`s refusal to recognize it, because it also claims sovereignty over some of the territories. In addition to this controversy, the agreement has altered the regional balance by bringing Pakistan and China closer together, while weighing on Pakistan-U.S.
relations. Pakistan had expressed some reservations, with Chinese maps showing parts of Pakistan on their side. Ayub Khan asked for clarification, but no response was received. After Pakistan`s vote to place a seat of China on the UN Security Council, the Chinese withdrew their cards in January 1962 and agreed to start discussions on the subject. Pakistan has welcomed its willingness to reach an agreement. Talks between the two sides officially began on 13 October 1962 and resulted in an agreement signed on 2 March 1963 by Foreign Ministers Chen Yi and Zulfiqar Ali Bhutto of China and Pakistan respectively. As a result, China withdrew from the disputed area following a complaint by Pakistan. It demonstrated the aspirations of the people of both countries for the growth of friendly and fraternal relations that, in the years to come, had to play an aiding role in ensuring world peace.
According to Jane`s International Defence Review, the agreement was also important during the Cold War, as Pakistan had ties to the United States and was a member of the Central Treaty Organization and the South Asian Treaty Organization.  The agreement was part of a general strengthening of the Pakistan Association, which led to the secession of Pakistan from the United States.   After the delimitation of the borders, the two countries also concluded agreements on trade and air travel, the latter of which was China`s first international agreement with a non-communist country.  Following Pakistan`s vote to grant a seat to the United Nations, the Chinese withdrew the controversial cards in January 1962 and agreed to begin border talks in March.