Recently, Pakistan’s decision to scrap the China-Pakistan Economic Corridor (CPEC) Authority has gained approval from China. This development is seen as a result of increasing tension between the two nations over the slow progression of the $60 billion project.
About The CPEC Authority
Established in 2019, the CPEC Authority was designed to expedite CPEC-related activities. Its interests included uncovering new growth drivers, unlocking potential from interconnected production networks, and capitalising on global value chains through enhanced regional and global connectivity.
Reasons Behind Authority Suspension
The decision to suspend the authority comes amidst escalating local protests against the Pakistan Army in Pakistan-occupied Gilgit Baltistan. Residents are up in arms about the army’s excessive land acquisition, all under the CPEC umbrella.
Moreover, in April 2022, the Baloch Liberation Army (BLA), which stands against China’s investments in Balochistan, carried out a suicide bombing at Karachi University, killing three Chinese nationals. Amidst such security concerns, China is reportedly pressuring Pakistan to allow Chinese authorities to provide security for their personnel. However, Islamabad is resisting this move.
Another factor contributing to the suspension includes delays in CPEC projects due to changes in taxation policies by the Pakistan government, contradicting commitments made to China.
Understanding the China-Pakistan Economic Corridor
Stretching over 3,000-km, CPEC is an infrastructure pathway connecting China’s northwest Xinjiang Uygur Autonomous Region and Pakistan’s Gwadar Port located in the province of Balochistan. The bilateral project promises to improve Pakistan’s connectivity with a blend of highways, railways, pipelines, energy, industrial, and other infrastructure projects.
It will open up a route for China to access the Middle East and Africa from the Gwadar Port. In return, China will support Pakistan’s development projects, easing its energy crisis and bolstering its struggling economy.
CPEC As A Potential Threat To India’s Sovereignty
India has consistently voiced opposition against CPEC as it traverses through Gilgit-Baltistan, a territory in Pakistan-occupied Kashmir claimed by India. Additionally, this corridor might provide an alternate economic route for the Kashmir Valley which lies on the Indian side of the border.
CPEC’s Influence On World Trade
Once operational, CPEC could potentially shift trade dynamics, offering a shorter and more economical trade route between North and Latin America and China, bypassing the lengthy journey around the Western Hemisphere. This strategic location could empower China to dictate international goods movement across the Atlantic and Pacific.
‘String Of Pearls’ Strategy And Chinese Dominance
China’s ambitious ‘String of Pearls’ strategy aims to encircle India through a network of airfields and ports. Already having a presence in several key locations such as Bangladesh, Sri Lanka, Sudan, Maldives, Somalia, and Seychelles, acquiring control of Gwadar port would further solidify China’s dominance over the Indian Ocean.
One Belt One Road (OBOR) Overview
Launched in 2013, the One Belt One Road initiative is a mega-infrastructure project aiming to connect Southeast Asia, Central Asia, the Gulf region, Africa, and Europe through land and sea routes. The initiative includes six economic corridors and a maritime Silk Road that connects coastal China to the Mediterranean via a series of strategic points.
While OBOR holds significant potential for infrastructure development, it also represents a pursuit of global influence by China. Consequently, developments within the framework of OBOR, particularly those pertaining to the China-Pakistan Economic Corridor, carry immense geopolitical implications.
