We will be played for fools by Pakistan--and by China by extension

From a WAPO article: 

A man who guided Shahzad from Karachi to the country's northwest, Pakistani officials say, was arrested this week at the mosque, which is affiliated with Jaish-i-Muhammad. The al-Qaeda-linked group is one in a mosaic of domestic jihadist organizations that were created or cultivated by Pakistan's intelligence services to antagonize Indian troops in the disputed region of Kashmir but have gone increasingly rogue.

U.S. officials say they are worried about these militant groups based in Punjab province, many of which are banned but still operate freely. The most prominent among them is Lashkar-i-Taiba, suspected in a deadly 2008 siege in Mumbai. The group has changed its legal name, but its leaders remain free.

Some elements in Pakistan's security establishment continue to view such groups as assets against India, and Punjabi politicians court them for political support. It is uncertain whether Pakistan would take aggressive action against the organizations, even if they are found to be definitively connected to the Times Square bombing attempt.

We are being held hostage to this fight.

And given the choices, why note choose India and force China to step up more and deal with Af-Pakistan?  Or should we fund all the security (or lack thereof) and let China build the ports and dig the mines?