Good point Sabah:
There are many factors that are leading to a favourable viewing of such cooperation in these countries.
American defence conglomerates (which are being swallowed by EU companies at an alarming rate), see such close cooperation as an open market for their weapons, (something that former USSR states have been reluctant to do and India still, inadvisably, persists on doing).
Pakistan has been able to develop renditions of US techs that are compatible with the Chinese.
Tehran has been very slow to do this, and is taking advantage of the USSR breakup to fund indegineous facilities to rehash Rusee techs. Saudi still relies on PAF to operate and command its airforce technology.
A LOOSE co-operation between these countries would generate a lot of income for the US and for the Chinese. China should see Tehran as a prime target for upgrade equipments and rendetion sales.
Such cooperation is very lucrative for these two nations.
Israel, bed partners of the US as they are, are out of this circle. They find a good partner in India.
Lets face it, India does have a larger potential than any union. They also have a lot of PILE HIGH USSR tech, which needs serious upgrading, (something India has been very slow to develop due to their expensive indeginous programs).
So, the reason why no one else wishes to oppose LOOSE cooperation, is because they find it lucrative.
The only people who strategically loose out are other muslim countries (Damishq, Cairo and Baghdad). If they see the progression of the union, they will have an option to render services to one of the 5 sidea to the region.
One of the things that is actually helping this is India's decleration of its motives for the region. Countries in teh middle east do not think of India as a threat to them.
On the contrary, they have supported India on many of its stances (including Kargil).
However, its India as a market for military equipment that they are worried about.
Israel is by far one of the largest arms exporter in the world.(6th by turnover).
Close cooperation between these two nations is what is raising eyebrows in Riyadh (generally the softest of the states in Indian affairs).
Damishq and Tehran have never really been pro Indian (sometimes completely the opposite).
So, India actually is, in a way, doing a lot to promote this, rather than deter it.
This is what our opinion on the matter is regarding why there is no reproachment by the US on these designs.