CURRENT AFFAIRS
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China-Pakistan Economic Corridor (CPEC)
- IAS NEXT, Lucknow
- 08, Feb 2022
Reference News:-
China and Pakistan have signed a new agreement on industrial cooperation as part of the China Pakistan Economic Corridor (CPEC) plan.
- The industrial cooperation agreement is a key part of what is being called “phase two” of CPEC.
- The first phase primarily involved Chinese investments in energy projects as well as road infrastructure.
About CPEC:
Launched in 2015, the CPEC is the flagship project of the multi-billion-dollar Belt and Road Initiative (BRI), a pet project of Chinese President Xi Jinping, aimed at enhancing Beijing’s influence around the world through China-funded infrastructure projects.
- The 3,000 km-long China–Pakistan Economic Corridor (CPEC) consists of highways, railways, and pipelines.
- CPEC eventually aims at linking the city of Gwadar in South Western Pakistan to China’s North Western region Xinjiang through a vast network of highways and railways.
- The proposed project will be financed by heavily-subsidised loans, that will be disbursed to the Government of Pakistan by Chinese banks.
Opposition by the locals:
CPEC is getting increasingly unmanageable with local Pakistanis unhappy with the Chinese soldiers and civilians working on the project. Therefore, Pakistan has been forced to deploy more soldiers in the area.
But, why is India concerned?
It passes through PoK.
- CPEC rests on a Chinese plan to secure and shorten its supply lines through Gwadar with an enhanced presence in the Indian Ocean. Hence, it is widely believed
that upon CPEC’s fruition, an extensive Chinese presence will undermine India’s influence in the Indian Ocean.
- It is also being contended that if CPEC were to successfully transform the Pakistan economy that could be a “red rag” for India which will remain at the receiving end of a wealthier and stronger Pakistan.
- Besides, India shares a great deal of trust deficit with China and Pakistan and has a history of conflict with both. As a result, even though suggestions to re-approach the project pragmatically have been made, no advocate has overruled the principle strands of contention that continue to mar India’s equations with China and Pakistan.
