CPEC
– INTERNATIONAL
News: China, Pakistan to ink significant
agreements under CPEC projects
What's
in the news?
●
China and Pakistan will ink significant
agreements regarding motorways and highways during caretaker Prime Minister
Anwaarul Haq Kakar’s four-day visit to Beijing.
Key
takeaways:
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The agreements would be signed under the
$60 billion China-Pakistan Economic Corridor (CPEC) programme.
CPEC:
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The CPEC is a bilateral project between
Pakistan and China.
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It is a 3,000-km long route of infrastructure projects connecting China’s
northwest Xinjiang Uygur Autonomous Region and the Gwadar Port in the western
province of Baluchistan in Pakistan.
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CPEC is a part of the Belt and Road Initiative.
○
The BRI, launched in 2013, aims to link
Southeast Asia, Central Asia, the Gulf region, Africa and Europe with a network
of land and sea routes.
Why
is CPEC beneficial for China?
1.
Unique location:
●
Pakistan has the geostrategic significance for China due to its unique location.
●
Through CPEC, China could harness Pak’s
potential as a regional hub for China, Central Asia and the Middle East.
2.
Energy security:
●
Currently, the only maritime route
available for China to access Africa, the Middle East, and Europe is through Malacca Strait.
●
To overcome this, China is searching for
alternative routes via Myanmar or Pakistan to secure oil imports and also
export its cheap goods.
3.
Xinjiang region development:
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China’s Xinjiang region is underdeveloped
due to its landlocked nature and
insurgency by Uighur militancy.
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However, the Xinjiang region has huge oil
and gas reserves and it is the only route for China to access Central Asia.
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CPEC will link Xinjiang with the Indian
Ocean via Gwadar port.
4.
Access to Africa and Middle east:
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Currently, several Chinese companies are
engaged in developmental projects in Africa and the Middle East region.
Thousands of Chinese workers are
employed over there.
●
CPEC serves as a short route to access those areas. This could further deepen
Chinese activities in Africa and the Middle East.
Advantages
of CPEC for Pakistan:
1.
Socio and Economic development:
●
In recent years GDP growth rate is poor
and unemployment rate is soaring high every year in Pakistan. Investments
through CPEC will be a game changer for Pakistan.
2.
External loans:
●
Pakistan was put in a grey list of the global anti money laundering group. So, grants and
loans from International multilateral development institutions were reduced.
●
China's grants and loans are helpful for
Pakistan to improve the economic conditions.
3.
Development in underdeveloped region:
●
CPEC comes through Pakistan's
underdeveloped areas, this will increase the employment opportunities and socio-economic developments of the
people of those areas.
Concerns
of CPEC for Pakistan:
1.
Debt Trap:
●
Pakistan's debt levels have become a
concern due to the large scale of projects financed by loans from China and the
ability to repay these loans.
●
China is now Pakistan's largest creditor,
with Pakistan owing 27.4% of its total
external debt to China in 2021, according to the IMF.
2.
Regional Imbalances:
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CPEC is focused on certain areas and
provinces in Pakistan, leading to concerns about regional imbalances in
development and investment.
3.
China's increasing influence:
●
Some have raised concerns about China's
increasing influence in Pakistan and the potential for the project to
compromise the country's sovereignty and independence.
Why
is it a problem for India?
1.
Impinges on India’s sovereignty and territorial integrity:
●
India officially expressed strong
opposition to CPEC, criticising it for affecting its sovereignty.
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India’s primary concern is with the
corridor’s path through Gilgit-Baltistan
in PoK (Pakistan Occupied Kashmir), which India considers its territory.
●
The construction of CPEC would further
reinforce Pakistan’s claim over the region.
2.
Chinese dominance:
●
A China that is more accepted and
integrated into the rest of the global economy will have a stronger voice in
the UN and with individual nations, which may be bad news for India’s bid for a
permanent seat on the UN Security Council.
3.
Chinese String of Pearls:
●
With an existing presence in Chittagong port (Bangladesh), Hambantota
port (Sri Lanka), Port Sudan (Sudan), Maldives, Somalia and Seychelles, a
control of Gwadar port establishes complete dominance of the Indian ocean by
the Communist nation.
4.
Afghanistan's entry:
●
In May 2023, Afghanistan officially joined
in the CPEC project.
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This will pave the way for increased
terrorism activities and seriously hinders India's access to Central Asia.
5.
Security threat:
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Further, it also has a fear that the newly
developed roadways near the Indian border in the PoK region will raise the
infiltration of anti-India elements from Pakistan to India.
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CPEC and it's related developments in the
Pakistan occupied Kashmir will increase
the state sponsored and non-state sponsored terrorism in the region.
6.
Affect riparian rights and strategic interests:
●
China is also building large dams (7,100MW
Bunji Dam and the 4,500MW Diamer – Bhasha Dam) and military bases
in this region, both affect India’s riparian rights and strategic interests.
Options
for India to counter CPEC and BRI:
1.
QUAD:
●
India is a member of the Quad (India, the
US, Australia, and Japan) which can provide realistic alternatives for
countries looking for infrastructure and be an alternative to China.
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The member countries of the Quad have come
up with some alternatives.
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For example, Blue Dot Network (BDN) and Build Back Better World (B3W) initiative.
2.
Chabahar Port:
●
India can counter Chinese dominance in
Gwadar port through Chabahar port in Iran which is very near to Gwadar Port and
India helped in its development.
●
Moreover, India signed a trade corridor deal with Iran and
Afghanistan giving India access to Central Asia from Chabahar, bypassing
Pakistan.
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However, Iran is considering participating
in CPEC.
3.
Speed up own projects:
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India should speed up work on the
development of its own strategic projects like the Spice route and Mausam Project, Bangladesh, China, India and
Myanmar Economic Corridor (BCIM) and
Chabahar Port.
4.
International North South Transport Corridor:
●
This corridor will play a major role to
counter China's CPEC projects and increase India's accessibility of Central
Asia.
5.
Increase India's investment in Afghanistan:
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More investments by India in Afghanistan
and Improved infrastructure and security situation in Afghanistan may help
India to conduct its economic and trade activities in a secured environment.