PESHAWAR (Pakistan) - GUNMEN in restive north-west Pakistan opened fire on a Chinese engineer in a crowded market on Wednesday, leaving him in serious condition, police said.

The incident took place in the town of Malakand northeast of Peshawar, on the frontline of the lawless tribal areas bordering Afghanistan.

'Gunmen overpowered the guards accompanying the man and fired shots at him in the Dargai market in Malakand, injuring him seriously,' local police official Mohammad Humayun told AFP.

He said that the Chinese national, who was working on a hydroelectric power project in the area, suffered multiple gunshot wounds and was in hospital in serious condition.

Police have launched a probe into the attack, Mr Humayun said, adding that no one had so far claimed responsibility.

Islamic militants and tribal insurgents have carried out a series of attacks against Chinese workers and installations in Pakistan over the past few years in an attempt to derail Beijing's increasing investment in the country.

China is one of Pakistan's closest allies as well as its largest arms supplier.

Pakistani Taleban militants kidnapped two Chinese telecoms engineers in August in the northwestern town of Dir, near the Afghan border.

One of the engineers later escaped from his kidnappers and found his way to an army post, while the other was severely injured in the escape attempt before being recaptured. There has been no news of his whereabouts since. -- AFP