Question one

Elaborate Pak China partnership in CPEC and Indian antagonism towards it.

Introduction

Significance of CPEC

Pak China partnership in CPEC (connectivity and motives)

Benefits for Pakistan

Indian antagonism towards CPEC

Analysis

Conclusion

 Introduction
China Pakistan economic corridor CPEC project is $62 billion China funded flagship project
within China’s belt Road initiative BRI which is faster heading towards closure of early harvest
projects. It has been estimated that BRI-stipulated GDP growth rate, trade facilitation, social
economic development, foreign direct investment in human capital improvement will help BRI
countries to boost trade by as much as 9.7% provided if their projects are executed in time as per
their potential. In implementing this corridor China and Pakistan are not striving to merely
leverage India as their partners in CPEC but India has its own paranoid reasons to oppose BRI
and more specifically the CPEC. It must offer peace rather than continuing to ride its hegemonic
ambitions.

 Significance of CPEC
CPEC initiative will provide multi dimensional linkages side by side with five areas coordination
of policies connection of infrastructure facilities, trade liberation, free flow of capital, and people
to people contacts. China attaches special importance to having the CPEC project completed in
three phases by 2020. Involving only one country Pakistan; provides China with direct access to
an Indian Ocean. The route shortens western China distance to Arabian Sea from 13,000
kilometers to just 3000 kilometers and cuts the transit time from 45 days to only 10.

For China and Pakistan CPEC will instill greater vitality with a stronger strategic as well as
economic content to their al-weather friendship. For both, this indeed is a huge agenda with

1
mutual interests rooted in their common vision for a better future for their own peoples and for
peace and prosperity of the region itself. For China it is national revival through accelerated
development of its backward western regions whereas for Pakistan it is the imperative of
converting its geopolitical location into an asset rather than a liability. The real challenge for
both now is that they can translate this common vision into reality.

Pakistan is hugely important country in emerging geopolitical competition with China in South
Asia. Pakistan is one of China’s few allies in China Pakistan economic corridor CPEC, the
showpiece of belt Road initiative BRI, it is an object of massive Chinese investment under
CPEC, and it is the beneficiary of Chinese production in the United Nations Security council.
Over the past decades Pakistan has move traditional linkages with Washington to increasing
international alignment with Beijing reflecting a fundamental geopolitical fact. Both China and
Pakistan regard India as a threat whereas United Nations sees India as a partner.

 Pakistan China partnership in CPEC (Connectivity and Motives)

The belt Rd initiative has been playing a dominant role in social and economic development of
BRI and non BRI countries. CPEC connects China with Gawadar port on Pakistan southern
coastline in Baluchistan province. Along the corridor route the plan envisages connectivity
through road and rail networks power production units and special economic zones (SEZs).
CPEC at the flagship of all the BRI corridors sets the tone for others. Comprising the Silk Route
economic belt and the 21st century maritime Silk Route the two modern versions of the ancient
Silk Route were to provide transcontinental connectivity of trade and economy.

Gwadar port of Pakistan is 400 kilometers from the Strait of Hormuz, the critical choke point in
the Persian Gulf through where the bulk of China’s energy needs pass. Nearly 80% of China’s
imports pass through Strait of Malacca. Both of these trades make China extremely vulnerable in
case of tensions flare up around them. The CPEC with growing interests at its terminal put China
at the doorstep of Hormuz and could eliminate the Malacca route completely. Notwithstanding
its grand vision and the speed at which the project has taken off; CPEC continues to face
multiple challenges with three significant holdovers India, Japan and United States.

Both China and Pakistan have to sharpen their implementation, improving bureaucratic and
procedural impediments. On their part the Chinese have always delivered on their commitment,
the problem is on our side. In order to be benefitted by important geo-economic benefits CPEC
should have been managed and implemented by us along the lines we did in the case of our
nuclear program. For unhindered smooth implementation of CPEC we in Pakistan need an
independent high level autonomous authority to exercise and over arching control of the project
in all its aspects, free of bureaucratic and procedural bottlenecks and political encumbrances.
Responsibility of Pakistan is to provide the needed political support and requisite security
framework for its smooth and unhindered implementation.
2
The main focus of China Pakistan economic corridor is to enhance regional connectivity and the
cooperation and prosperity, BRI offered huge diplomatic space to China and impact the
International Security and economy. It is estimated that BRI-stipulated growth, trade facilitation,
socio-economic development, foreign direct investment and human capital improvement will
help BRI countries boost trade as much as 9.7% provided that projects are executed in time and
as per their potential.

Apart from helping countries in strengthening their faltering economies BRI is also set to
compliment UN launch sustainable development goals, alleviation of poverty is the most
promising dividend of BRI. Almost 40 million people will be lifted out of extreme and moderate
poverty. By all accounts over $7 trillion worth investment under the portfolio of BRI in 71
countries is going to have tremendous impacts over the global economy finance and trade and by
extension over International Security and global governance.

Despite some success in energy generation and infrastructure CPEC is unlikely to generate
significantly increase employment opportunities as elsewhere it is more about exporting surplus
Chinese capacity including labor than generating sustainable Pakistan enterprises. In fact the
economic free zones concept of the original CPEC is quite being buried.

United States is somehow opposing CPEC because her hegemony in Indian Ocean will be
reduced if the project will become successful. CPEC is not just China’s project it is important for
United States to realize that its Pakistan’s too. CPEC will raise Pakistan’s stake in country’s
economic prosperity and political stability of which it is quite capable strengthening its resolve to
fight against militant organizations. And it may bring strategic clarity to Pakistan- Afghanistan
issue for its own sake and for the sake of success of CPEC.

 Benefits for Pakistan

Pakistan has benefited tremendously from CPEC linked projects. Development of Gwadar
seaport is important pillar of first phase of CPEC. Almost $0.7 billion worth investment was
promised to operate the seaport and enhance its capacity to handle both trade and transshipment.
All projects I’ve entered an advanced level of development and some are almost at finish lines.

The most critical component of first phase of CPEC is up-gradation of mainline 1 (ML-1). This
project will help Pakistan railways increase the speed of passenger and freight trains up to 160
kilometer per hour and 120 kilometer per hour respectively. Pakistan’s transportation is now at a
cost of deep transformation it is now upon its management to seize upon the historic opportunity
and design profitable business and operational plans in order to become a profit earning
enterprise instead of being a constant liability for the state.

3
Industrialization is the central pillar of second phase. Both sides realize that trickledown effect
of CPEC can be security threat. There is rapid industrialization and generation of employment
opportunities. In order to materialize Industrial Corporation received back both sides have
decided to establish and operate SEZs. These special economic zones add an impetus to industry
export and foreign direct investment help generate massive employment opportunities and
incentivize structural reforms to ensure business friendly legal regulatory and administrative
atmosphere.

As much as 19.8% contribution to GDP provision of employment to 44.5% of Pakistan’s labor

force significant role in providing exportable surplus to the country decisive part in ensuring
food and nutritional security to 22 million people; huge agro industries have made agriculture
the most important sector of our economy. Chinese are particularly interested in areas of cotton
productivity development of efficient irrigation techniques and strengthening the post harvest
infrastructure along the CPEC roots.

The Joint Cooperation Committee meeting broadened the scope of future cooperation around
CPEC by establishing independent joint working groups JWT on social economic interventions.
These groups deal with six areas of cooperation education, agriculture and industrial research to
improve competitiveness of our industrial and agricultural exports, poverty alleviation, skill
development, health care, water supply and sanitation and vocational training projects.

The increasing demand of uninterrupted communication between China and Pakistan across
border or optical fiber cable project was added to the CPEC with an aim to provide reliable
Internet connectivity. The activation of connectivity has yielded positive result in Pakistan is
now planning to extend the project down to Gwadar port.

Apart from economic significance; CPEC has potential to act as an instrument of soft power
projection for Pakistan. The economic dividends that can potentially be harvested through
CPEC would provide Pakistan do strategic leverage in the regional affairs thereby paving the
way for sustained growth and development of the country.

The idea of CPEC is based on futuristic economic relationship among Asian neighbors and
even beyond. Few years ago only a couple of universities from Pakistan have signed
memorandum of understanding with Chinese universities and nothing significant outcome
research has been seen. Now, the Government College University Lahore GCU is having a
Chinese Research Center which is showing positive results in the field of research and
enhancing the friendship and cooperation among China and Pakistan in educational sector. HEC
has formulated a full fledge course at bachelors level to study China with the name of BRI and
CPEC regional development only in the discipline of social sciences. Such educational
initiatives would be playing a role of economic backbone for Pakistan because these will lead to
the boosting of special economic zones of Pakistan and youth will find job opportunities in these.

4
  Indian antagonism towards CPEC
Notwithstanding its grand vision and the spread at which the project has taken off the cpac
continues to face multiple challenges by India.

 Objection on CPEC route

CPEC allows China the possibility of a naval presence close to India’s western coastline which
together with Pakistan’s antipathy will become a challenge for India. India also objects CPEC
routes that transfer the Gilgit Baltistan region. Both Pakistan and china have denied India’s
objections and insists that CPEC is only aimed at expanding the regions linkages of peace and art
of erstwhile state of Jammu and Kashmir contested by India and Pakistan. Both china and
Pakistan have repeatedly invited India to come on board. CPEC has no geographical boundaries
if anything it will foster regional harmony and forge closer relations among China Pakistan and
their neighbors with no exclusively or selectively. It will directly benefit over 3 billion people in
China, South Asia, Central Asia and Middle East. On completion the CPEC will bring over
arching economic and trade connectivity bilaterally as well as regionally.

 India is South Asian hegemon

India has established in practice a special positioning in the Indian Ocean region between East
Indies and the Horn of Africa. Like Britain with respect to Europe in 18 th and 19thcenturies, India
strives to prevent the emergence of a dominant power in the vast portion of the globe. With
respect to Monroe Doctrine India in the region of special strategic Interests conduct its policy on
the basis of its own definition of South Asian order. India’s ambition to emerge as South Asia’s
hegemon is reflected in its successive defense budgets.

 Countering strategy of Gwadar port:

India is feared of Chinese massive involvements in different parts of South Asia. India believes
that Gwadar is less a center of economic activities but more it will serve as a naval base for
China in the future which is a great threat to Indian security. India is fearful that by this
continuous engagement China will start military engagements through Indian Ocean in future. If
China uses CPEC for strategic purposes the balance of power will be in the Chinese favor.
India’s concern about CPEC and relationship between China and Pakistan are combined with
growing presence and influence of China in South Asia and Indian Ocean region. For this India
has invested heavily on jambaha port to counter the strategy of gwadar port.

 Threat to India’s defense:

Pakistan and China enjoy a friendly relationship from a long time. Economic and defense
cooperation is significant including the nuclear field. There is a major threat to India’s defense

5
system, if China came to Pakistan’s aid in Indo-Pak war. The infrastructure of CPEC will
facilitate Chinese deployment of troops increasingly to India’s Western Front as well.

 Analysis:
It’s a particularly well known fact that China Pakistan economic corridor is a branch of above
$60 billion for Pakistan from over $6 billion investment. It’s all due to China’s investment
friendly philosophy. Fortunately this game is the privilege bounty for Pakistan due to the
geostrategic location and time tested Pak-China friendship. The CPEC has taken the lead in
consolidating economic, political and socio-cultural relations between Beijing and Islamabad. It
is one of the six economic corridors envisaged in President Xi jinping’s signature policy of Belt
Road Initiative BRI as the one that has been given much more importance after declaring it a
flagship project of the BRI. this longer At the time when CPEC projects are successfully
approaching completion a smooth transition to its more advanced phases can help Pakistan
qualify to a more dignified status in the comity of nations. Pakistan is playing an increasing
prominent role beyond the South Asian region, the consequences and implications of which are
already becoming evident in short period of time. However Pakistan has to be cognizant of the
numerous challenges and threats that lie along this pathway to our international club.

 Conclusion:
China Pakistan economic corridor is a game changer; both China and Pakistan understand the
multiple advantages of this initiative. It will provide shortest route from Shanghai to Europe
holds transportation and also shorten the transportation of oil from gulf countries to Chinese
market. CPEC is significant because it can revive Pakistan’s falling economy and boost its power
to balance India’s regional hegemony, it can create more jobs and improve the society. It will be
significant for China towards Indian Ocean to counter India’s overwhelming superiority in sea
power. Besides corridor, maximum benefits for both Pakistan and China, the corridor is facing
various hurdles and challenges. One of the main hurdles is Indian antagonism towards CPEC.

Precisely, China Pakistan economic corridor CPEC has the possibility to strengthen Sino- Pak
economic relations and to reshape regional politics. It will strengthen China’s Belt Road
Initiative. India’s growing hate and antagonist policies towards CPEC is a hurdle to the
successful implementation of project and to get maximum benefits out of it. Pakistan has already
done a great job by exposing Indian antagonism. However, it is a sensitive issue therefore
Pakistan needs to start a diplomatic opposition against Indian antagonism at local level to deter
Indian agencies and to get maximum benefits out of CPEC.