China's Foreign Ministry has also dismissed previous reports of Chinese ambitions to build a base in Pakistan.
"Countries should strengthen anti-terrorism cooperation on the basis of mutual respect instead of finger pointing at each other. This is all propaganda against the development of the China-Pakistan Economic Corridor (CPEC) and strengthening of relations between Pakistan and China", Foreign Office spokesman Mohammad Faisal said.
Pakistan's move to allow Chinese currency is not a dramatic policy change, as the yuan is already accepted by many Pakistani companies, said Dong Dengxin, director of Finance and Securities Institute at Wuhan University of Science and Technology.
The Trump administration has suspended about United States dollars 2 billion in security aid to Pakistan for failing to clamp down on the Afghan Taliban and the Haqqani Network terror groups and dismantle their safe havens.
She said US President Donald Trump is willing "to go to great lengths to stop all funding from Pakistan as they continue to harbor and support terrorism".
Jiwani is also close to the strategic Gwadar port in Balochistan which is being developed by China.
Rebuffing a U.S. suggestion that China should convince Pakistan to crack down on terror, Beijing said it would not be "conducive" to link terrorism with its "all-weather" Islamabad.
Speaking further on the issue, he said,"Terrorism is a common enemy for all mankind, and fighting against it needs the collective efforts of the global community".
"Actually, China is defending countries that have been making anti-terrorism efforts in a just and fair way. Cracking down of terrorism calls for the joint efforts from the worldwide community", he said. "China also welcomes all the global joint efforts in terms of counter terrorism on the basis of mutual trust and mutual respect", he said.