China’s Policies: China-Pakistan Economic Corridor (CPEC)

What is CPEC?

• Aim: CPEC was launched in 2015 as a multi-billion dollar initiative aimed at enhancing connectivity between China and Pakistan.
• Features: The project includes the development of roads, railways, pipelines, and energy projects.
• Connecting Regions: It stretches from the Xinjiang province of China to the Gwadar port in Pakistan, providing China with direct access to the Arabian Sea and the Indian Ocean.
• Objectives
  • Promote infrastructure development in Pakistan.
  • Boost energy supply and connectivity.
  • Foster trade between China, Pakistan, and other regions.

Strategic Importance of CPEC for China

1. China’s Access to the Arabian Sea:
   • CPEC provides China with a shorter route to the Middle East and Africa through Pakistan’s Gwadar port, reducing its reliance on the vulnerable Strait of Malacca for energy imports and trade.
2. Boost to Pakistan’s Economy:
   • For Pakistan, CPEC is seen as a game-changer, helping address its energy deficits, creating infrastructure, and generating jobs. It is expected to enhance Pakistan’s economic stability.

Implications for India

1. Sovereignty Concerns
   • One of India’s primary concerns regarding CPEC is its route through Pakistan-occupied Kashmir (PoK), a region India claims as its own. India views this as a violation of its territorial integrity and sovereignty.
2. Geopolitical Implications
   • India views CPEC as part of China’s broader strategy to encircle India through its “String of Pearls” policy, which involves developing ports and military bases in India’s neighborhood.
3. China-Pakistan Nexus
   • The growing strategic and economic partnership between China and Pakistan, cemented by CPEC, further complicates India’s security environment.
4. Economic and Diplomatic Challenges
   • CPEC enhances China’s economic influence in South Asia, shifting the regional balance of power. India may face economic isolation in the region if it does not engage with similar connectivity and infrastructure projects.

India’s Response to CPEC

1. Diplomatic Engagement: India continues to diplomatically oppose CPEC, raising the issue of sovereignty at international forums.
2. Strengthening Infrastructure and Connectivity: India has launched its own initiatives like the International North-South Transport Corridor (INSTC) and the Chabahar port development in Iran to counter China’s growing influence in the region.
3. Strategic Partnerships: India has strengthened ties with countries such as the United States, Japan, and Australia through forums like the Quad, aiming to maintain a balance of power in the Indo-Pacific region.