China-Pakistan Economic Corridor (CPEC)
China and Pakistan are partners in the bilateral CPEC project, a development project that was initiated in 2013.
It is a component of China's ambitious One Belt One Road (OBOR) Initiative, which connects China with Europe.
With a network of roads, trains, and pipelines along with other infrastructure development projects, its declared goal is to improve connectivity throughout Pakistan.
This enormous 46 billion dollar project will link Gwadar port in Pakistan's largest province, Baluchistan, with Kashgar in China's Xinjiang province.
It is connected by a wide and intricate network of highways in addition to other infrastructure undertakings like pipelines, railroads, dams, and hydropower projects.
China Development Bank, Exim Bank of China, and Industrial and Commercial Bank of China are among the major Chinese banking institutions that have provided the Pakistani government with significantly subsidized loans to fund the proposed project.
Interest of China-Pakistan:
China is keen on the China-Pakistan Economic Corridor (CPEC) because it offers a direct route to the Middle East and Africa via Gwadar Port, providing access to the Indian Ocean.
Pakistan is interested in CPEC as it promises Chinese support for development projects aimed at addressing the country's energy shortages and stabilizing its struggling economy.
Impact of CPEC on India:
Sovereignty and Territorial Integrity Threats
The CPEC corridor threatens India's sovereignty as it passes through the disputed region of Gilgit-Baltistan, part of the former princely state of Jammu and Kashmir claimed by India.
The corridor enters Gilgit-Baltistan via the Khunjerab Pass, an area occupied by Pakistan.
Security Threats:
Chinese military presence in the region has increased since the construction of CPEC began.
In 2017, Chinese troops participated in Pakistan’s Day parade in Islamabad, marking their first parade outside China.
China has delivered eight submarines to Pakistan and plans to build a second naval base at Gwadar Port, following Djibouti in 2017, posing a serious security threat to India.
Strategic Concerns:
India opposes CPEC as it passes through Pakistan-occupied Kashmir (PoK), infringing on India’s sovereignty.
Successful implementation of CPEC would hamper India's strategic interests in South Asia and facilitate China's ambition to encircle India.
Joining CPEC would legitimize China-Pakistan territorial claims over land belonging to India.
China's construction of large dams and military bases in the region affects India’s riparian rights and strategic interests.
India’s trust deficit with China and Pakistan, due to historical conflicts, makes China’s involvement in Kashmir through CPEC a potential future risk.
Lack of Tangible Benefits:
Unlike the Shanghai Cooperation Organization and the Asian Infrastructure and Investment Bank (AIIB), CPEC offers no tangible benefits for India.
Beijing has rejected several of Islamabad’s proposals for direct investments in various sectors under the CPEC, such as energy, tourism, water management, and climate change. This was evident from the signed minutes of the 11th Joint Cooperation Committee (JCC) of the CPEC, which is a key decision-making body for the project. China's reluctance to expand cooperation in these areas highlights the challenges both countries face in strengthening their economic ties.