Introduction
To be able to understand the
China Pakistan Economic Corridor (CPEC), it is important to have a brief
introduction into China’s Belt and Road Initiative (BRI) or the One Belt One
Road (OBOR) vision. It is a strategic plan that involves development of up to
six corridors in various countries across the Central Asia, South East Asia and
parts of the Middle East, trying to replicate the ancient Silk Route. As a part
of this, they also have the 21st Century Maritime Route that
attempts to link China to Europe through South West Africa and South Asia. If
successful, the OBOR will connect China to up to 60 countries, boosting its GDP
by up to 25%.
Need for CPEC
The CPEC is a part of the vision of OBOR. China needs
the CPEC for two key reasons. First, the Chinese economy is manufacturing
based, therefore it requires an uninterrupted flow of raw material and
power/energy and a market to sell these products. For both of these, China’s
best solution is to be directly connected to the Middle East and the Central
Asian Republics (CAR), which hold a significant amount of energy sources. Due
to lack of development and connectivity, most countries avoid trading with the
CAR and instead opt to obtain energy from the Middle East. Once CPEC is
developed, China will be able to trade with the CAR with ease and it will also
reduce the vulnerability of China’s trade route passing through the Strait of
Malacca and the disputed South China Sea which proves to be more expensive as
well as dangerous[1].
Therefore, if CPEC progresses
as planned, it solves both problems since it provides China with a shorter
route to transport goods to the mainland that too a route that doesn’t involve
the added threat of hostile nations and at the same time it increases the parts
of the World they can trade with.
About the project
Under the project, the objective is
to focus on four key areas; Gwadar port, Energy, Transportation Infrastructure
and Industrial Cooperation.[2] While these are the key
areas, the other areas to be worked on include expansion in Financial Services,
Science and Technology, Tourism, Education, Poverty Alleviation and City
Planning[3], etc. According to a February report by international ratings agency Moody's,
the corridor will boost economic activity in Pakistan, whose growth rate is
expected to be 4.9 per cent this year.[4]
The long term
project is expected to span over 2013-2030. To keep things systematic, some of
the projects have been listed into early harvest projects which are likely to
be completed by 2018-2020 while the others will follow thereafter.
Transportation
Connectivity New highways spanning across Pakistan have been
planned that will increase the connectivity of the sea ports with the Northern
areas of the country, and even to some parts of Central Asia and China. For
e.g. improvements are being made on the Karachi and Peshawar railway line which
is the most important line of the Pakistani railways, one that has also seen
significant ruin.
Energy Projects Under CPEC, while
primary focus has been on generation of energy through fossil fuels: wind,
hydropower and solar energy will also be a part of the plan in energy
infrastructure development.
Gwadar
Port. The Gwadar Port is perhaps the most important part of the CPEC
since this is the primary link/point of connectivity in the corridor. Up-gradation
of the port and the facilities available there is underway. Chinese as well as
Pakistani authorities have made repeated remarks that the port will be aimed at
improving the maritime connectivity in the region. The corridor will help cut the journey time for freight between Gwadar
Port, West China and the Central Asian regions by 60 to 70 per cent.
Industrial Cooperation. The CPEC
has also targeted industrial cooperation in the area. The improved
transportation and energy infrastructure will help the industries to first
increase their production and then distribute them equitably.
Conclusion
CPEC is a project that brings maximum benefits to China,
maximum loss to India, with Pakistan stuck somewhere in between with a balance
in pros and cons. It is clear that successful implementation of CPEC would be
nothing short of disastrous for India. Therefore, India should consider taking
some measures, even if and preferably drastic ones to ensure that they do
whatever they can to reduce its expansion, if not altogether stop this project.
Written By:
Harshita Chaarag
IV Year
Disclaimer: The views and opinions expressed in the article are those of the author
and do not reflect the views and opinions of the Blog.
[1] More
on this in the section dealing with economic and strategic implications for
China.
[2] Referred to http://www.cpecinfo.com/10-questions-on-cpec (1st July 2017, 22:00).
[3] Ibid.
[4]
Referred to http://economictimes.indiatimes.com/news/defence/gwadar-port-will-boost-pakistans-regions-economy-china/articleshow/58513113.cms
(accessed on 1st July, 22:17)
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