China-Pakistan Economic Corridor (CPEC)

Context:

China, Pakistan, and Afghanistan have agreed to expand the China-Pakistan Economic Corridor (CPEC) to include Afghanistan.

• Trilateral Foreign Ministers’ Meeting: The announcement followed a meeting in Beijing among:
  • Chinese Foreign Minister Wang Yi,
  • Pakistan’s Foreign Minister Ishaq Dar,
  • Afghanistan’s Acting Foreign Minister Amir Khan Muttaqi.

What is CPEC?

The China-Pakistan Economic Corridor (CPEC) is a 3,000-km long infrastructure corridor connecting Xinjiang (China) to Gwadar Port (Pakistan).
CPEC is a bilateral project under China’s Belt and Road Initiative (BRI), aimed at:

• Enhancing connectivity across Pakistan via roads, railways, pipelines
• Facilitating energy, industrial, and communication infrastructure
• Providing China direct access to the Indian Ocean, Middle East, and Africa

Strategic Importance of CPEC for China and Pakistan

• For China:
  • Shorter and cost-effective access to Middle Eastern and African markets via Gwadar.
  • Reduction in dependency on the Malacca Strait.
  • Consolidation of China’s influence in the Indian Ocean Region (IOR).
• For Pakistan:
  • Critical solution to energy shortages and infrastructure deficits.
  • Potential to transform Pakistan into a regional trade and manufacturing hub.
  • Strengthened strategic ties with China.

India’s Concerns and Strategic Implications

1. Sovereignty Violation

• Route through Gilgit-Baltistan in Pakistan-occupied Kashmir (PoK), territory claimed by India.
• Seen as an infringement of India’s territorial integrity.

2. Strategic Isolation of Kashmir

• Enhanced infrastructure in PoK could undermine India’s claim over the region.
• Could shift the global perception towards legitimizing Pakistan’s control over Gilgit-Baltistan.

3. Enhanced Chinese Maritime Control

• CPEC strengthens China’s “String of Pearls” strategy — building naval and commercial bases across the IOR:
  • Gwadar (Pakistan)
  • Hambantota (Sri Lanka)
  • Chittagong (Bangladesh)
  • Others: Maldives, Seychelles, Port Sudan

4. Trade Route Realignment

• CPEC offers a shorter East-West trade corridor.
• May divert global trade away from traditional routes like the Panama Canal.
• Allows China to set terms for transcontinental logistics, impacting India’s trade leverage.

5. Export Competition

• Easier access to Chinese raw materials and logistics may strengthen Pakistan’s textile and construction exports, directly competing with Indian exports in key markets like the UAE and the US.

6. Strengthening China’s Geo-economic Clout

• A successful CPEC will reinforce China’s BRI as a dominant global trade architecture.
• Greater Chinese influence in global platforms like the UN, which may hinder India’s efforts to secure a UNSC permanent seat.

One Belt One Road (OBOR)/Belt and Road Initiative (BRI)

• Launched: 2013
• Objective: Develop a global trade network through large-scale infrastructure investment.
• Scope: Links Asia, Europe, Africa, and the Gulf via land and maritime routes.

Structure:

1. Six Economic Corridors:
   • New Eurasian Land Bridge (China to Western Russia)
   • China-Mongolia-Russia Corridor
   • China-Central Asia-West Asia Corridor
   • China-Indochina Peninsula Corridor
   • China-Pakistan Corridor (CPEC)
   • Bangladesh-China-India-Myanmar (BCIM) Corridor
2. Maritime Silk Road:
   • Connects coastal China to the Mediterranean via:
     • Southeast Asia
     • Indian Ocean
     • Arabian Sea
     • Red Sea and Suez Canal

India’s Stand

• India’s Opposition:
  • India has strongly opposed CPEC because it passes through Pakistan-occupied Kashmir (PoK).
  • India also opposes China’s broader Belt and Road Initiative (BRI), which includes CPEC.