China-Pakistan Economic Corridor (CPEC) and Its Implication on India

China-Pakistan Economic Corridor (CPEC) and Its Implication on India

CPEC is a collection of projects currently under construction at a cost of 46 billion dollar while over all cost of construction is $75 billion. Under the MoU, China will help Pakistan to develop highways, airports, sea links, pipelines and infrastructure. Proposed infrastructure to be built in Pakistan will be financed by heavily-subsidized concessionary loans that will be dispersed to Pakistan by the Exim Bank of China, China Development Bank and the Industrial and commercial Bank of China.

Saudi Arabia is third partner to join CPEC with the investment of 10 billion dollars. Pakistan announced in Feb 2019 that Saudi Arabia has agreed to join and invest heavily in its ongoing China-funded bilateral infrastructural and industrial development projects.

CPEC Route (with green line)

Why China needs CPEC?

China can dump its product faster : Sea route from Persian gulf to Beijing is 12,900 KM (approx). After the CPEC, the distance from Gwadar to Kashgar is 2000 km.

Stability in Xinjiang : It will reduce unrest in the Uyghur Muslim province of Xinjaing. Xinjiang produces 60% of China’s cotton (highly water intensive crop). It can become textile hub.

What Pakistan will benefit?

Pakistan will get much need economic infrastructure especially power plants. Pakistan suffers from crippling power crisis. Pakistan considers this as game changer.

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Positives of CPEC for India

China will pressurize Pakistan not to mess with India. If Pak-India go for war, the CPEC corridor being developed may be damaged by India.

If India attacks Pakistan and China declares war on India, China has everything to loose be it economically financially and with respect to military aid. The only option China will be left is to stop the attack or stop India and Pakistan from going to war. China knows exactly how much it is dependent on both the countries.

Less Terrorism

CPEC will create good amount of jobs. Employed youth won’t go with terrorism. Chances of Pakistan getting more jobs are less as China is shifting Chinese people in CPEC region.

More peaceful relations with China

Rivalry of India-China is more economic and less military. China will loose more in case of conflict. Because both of countries are the rising superpowers of world, they will hardly prefer any military confrontation on large scale.

Colonization of Pakistan

China is indirectly funding CPEC not directly by giving loan to Pakistan. China will be controlling whole CPEC. China is shifting its citizens in the Baluchistan province which is Gold and Copper rich.

CPEC terms are one sided in favour of China. An intelligent enemy is better than mad enemy. China controlled Pakistan is better than jihadist controlled Pakistan.

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China will snatch lands

Cherries and apricots of Gilgit Baluchistan region are very famous in China. Pakistani farmers fears that they will be displaced by rich chinese investors who will swallow up their limited agricultural land.

Negative of CPEC

Pakistan gets economically stronger. Threat to Indian oil supplies. CPEC passes through POK (India’s only objection). China will get the access to the Arabian which will neutralise the advantage. India has sitting on the Indian, Arabian sea.

How India countering CPEC

India has signed a deal with Iran to develop Chahbahar port. India can station its submarines and warships. As per the deal, India can use Iran’s military bases. This port will not only allow India access Afghanistan bypassing Pakistan but will also challenge gwadar port.

Chahabar Port

Chahabar port is more safe as Iran is more stable than Pakistan. India is also building railway lines to connect this port to central Asia through Afghanistan. Developed Chahabar will also reduce US dependence on Pak to access Afghanistan. US wants India to play a major role in Afghanistan.

Chabahar Port

Supporting Baluchistan

CPEC passes through unstable Baluchistan. Modi has raised this issue in UN and is supporting Baluch. If India supports Baluch, militarily and financially China can’t be successful with CPEC.

Isolating Pakistan

Modi is isolating pak diplomatically and asking for international economic sanction on Pak and declare pak as terrorist state and if US put economic sanctions on Pak, China will not be able to build that road. Saudi and UAE has taken lots of actions against Pakistan.

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Defence ties with US

USA – India defense agreement essentially positions US navy in the Arabian sea. US India controls Indian Ocean region. It has defense ties with Philippines, Japan, Australia and Vietnam etc giving it control of South china sea.

The power of US is not just in military but in controlling the western economy. Sanction by USA are very effective than chinese.

 

Making more use of Indus water

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Many Irritation and power project of CPEC depends on Indus water. India can reduce the flow.

Will CPEC be successful?

Pakistan is a land of religious fools. Most of the CPEC passes through unstable region. There is no proper governance in Pakistan. Cost is continuously escalating and project is continuously getting delayed because of protest from the people. Cost of power, toll tax charge is too high for Pak citizens to afford.

CPEC will not affect India in any condition. Only concern of India is that CPEC passes through Kashmir that is disputed between India and Pakistan. That is something India will never accept.

All the best for your upcoming exam!

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Updated: March 23, 2019 — 3:08 pm

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