Understanding the concept of China-Pakistan Economic Corridor (CPEC)

Understanding the concept of China-Pakistan Economic Corridor (CPEC)

Introduction: what is Economic Corridor?

The term Economic Corridor was first used by Asian Development Bank in 1998, which defines it as important networks or connections between economic agents along a defined geography, which link the supply and demand sides of markets. Economic corridors are the integrated transport networks of infrastructure within a geographical area which are designed to stimulate economic development.

It facilitates not only the movement of goods and services but at the same time, it must be emphasised that it also strengthens the exchange of information as well as people’s migration. It provides important connections between economic nodes or hubs that are usually centred in urban landscapes.

In concrete term, economic corridors are supposed to be function as a connector as well as purpose-built and to link connectivity, logistic flows, production, trade and commerce, development and infrastructure within a particular geographic structure. These physical infrastructures have to undertake a task of the centre of economic activities. On the one hand economic corridor has, as usual, an urban-centred outlook and it benefits only to urban areas, but on the other hand, it broadens benefits to rural areas as well through transport development, inclusive development, broader economic policy and economic development as well as connection of production activities.

In the long run, it paves the way for the financial integration, civilizational integration, employment promoting, standardised trade facility and financial management. It also bolsters historical, social, ecological and economic complementaries and people to people cultural ties and education institutions.

China-Pakistan Relations:

Essentially, china and Pakistan have enjoyed long-lasting strong and friendly ties and considered to be an irreplaceable all-weather friend as well. That is why, it is said that relationships between china and Pakistan are unbreakable, sacrosanct, unwavering and even unshakable. Both have been increasingly growing cooperation in the field nuclear cooperation and proliferation, space and satellite, science and technology, missiles programme, arms supply, diplomatic support, energy, domestic politics and mutual assistance relief. Relations between them have always been palpably describing enduring strategic partnership and friendship.

CPEC: The Bigger Picture

CPEC (China-Pakistan Economic Corridor) is the grand manifestation of the deep-rooted ties between china and Pakistan. It is also a glaring and reflection of china-Pakistan friendship.  CPEC is an endorsement and continuation to the enhancing bilateral friendly ties between the two countries. It is a commercial project and bilateral agreements which was signed between both china and Pakistan during the state visit of Chinese president Xi Jinping to Pakistan in April 2015. The CPEC is a mega project of 46 billion US dollars that incorporates infrastructure and energy projects. It has been said that the CPEC is a corridor of opportunity, and in fact, it may be a corridor of peace and prosperity. Therefore, Pakistan’s Prime Minister Nawaz Sharif called CPEC as a “Game Changer” and “Corridor to Peace” for the region. Moreover, the vital importance of this corridor is also reflected in the statement of Xi Jinping during his visit to Pakistan in 2015, he said that “this will be my first trip to Pakistan, but I feel as if I am going to visit the home of my own brother”.

It refers to a clutch of major physical infrastructure works which has been currently under construction at a cost of $46 billion in Pakistan. Moreover, it is a combination of cross-sectional components: Infrastructure, Trade connectivity, Transport, Energy services, Industrial cooperation and so on. However, Regional connectivity and economic development are two major aspects of the CPEC project. It consists of a network of roads, energy stations, rail routes, and oil and gas pipelines. CPEC is a route of almost 3,200 kilometres in length, intended to connect kashgar in china’s western Xinjiang Uygur Autonomous region to Gwadar deep water harbour in Pakistan’s south-western, lies close to Iranian border and the Strait of Hormuz as well, via a huge network of highways and railways. The CPEC project seeks to rapidly expand and upgrade infrastructure across the length and breadth of Pakistan as well as deepen and widen economic links with its “iron brother”, china.

The CPEC is essentially a significant part of a regional initiatives led by China, known as One Belt One Road (OBOR) or New Silk Road Economic Development Corridor. Moreover, the corridor is considered to be a part of china’s larger regional transnational and ambitious proposed 21th century Silk Road (or OBOR) initiative. It is designed to invigorate and revitalize ancient trade routes which once had been connecting Asia with Europe and Africa. It is nothing but part of china’s foreign policy of “Go West” and “Leap East”. It is also the major focus of Chinese diplomacy. It manifests the continental dimension of china’s geo-strategic realm as well as geo-economic manoeuvre. It seeks to link china with the Middle East, Africa and Europe through land-based as well as sea-based. China is penetrating African and Europe markets through this initiative. This is why, china has been always consistently and relentlessly on the qui vive for an OBOR initiative.

OBOR concept consists of two ambitious development proposals. One arm is the land-based, known as New Silk Road Economic Belt (SREB), whereas other arm is the sea-based, known as 21th Century Maritime Silk Road (CMSR). The SREB is a vision to revive the ancient Silk Road that once connected China with Europe by land. Through OBOR, China aims to create a SERB which connects china with Europe by land, viz. high speed rail roads, highways, energy and distribution networks as well as fibre optic networks. It is lying sprawled over a large patch of Asia and Eastern Europe. As such, it is also criss-crossed by a web of transport, energy supply and telecommunications lines as well. The basic notion of the SREB consists of three corridors:

1.     Northern Corridor (which goes from Beijing via Moscow and Germany to connect European cities)

2.     Central Corridor (which goes from Shanghai to Europe via Tashkent and Tehran)

3.     Southern Corridor (which goes from Guangzhou via Xinjiang and Khunjerab pass (Pak-china border) to Gwadar port (Indian ocean, Arabian sea and Persian gulf) And

As a sea based 21th Century Maritime Silk Road (CMSR) is to revive and aim to connect china with the Mediterranean Sea and the Persian Gulf which has to pass through Pacific and Indian oceans to boost regional connectivity and trade. It could open up an energy and trade corridor which will get through the Persian Gulf and Indian Ocean to china. It could be probably used and protected by the Chinese navy and warships to safeguard Chinese’s interest in this region. Resultantly, it will complement the SREB. Both projects are supposed to combine two fundamental Chinese development strategies i.e., “Bringing-in” and “Bringing-out”. These Chinese development strategies are supposed to be guided by the three principles.

1.     China does not intervene in the internal affairs of other nations.

2.     China does not seek to increase its “Sphere of Influence”.

3.     China does not endeavour to do hegemony or dominance.

But all the Chinese’s strategies and policies are supposed to be based upon the principles of Deng Xiaoping and even Chinese’s military doctrine thereon. Some dogma of Deng Xiaoping has been created worrying its immediate neighbour, particularly India. Here, it is pertinent to mention some principles of Deng Xiaoping towards china policy. For instance, Deng’s “lie low, bide your time” dictum is very outrageous for India as well as “keep a low profile and achieve something” slogan. His doctrine has been very respectable and acceptable in the corridor of power in China. Because of, he was one of the leaders of makers of modern china and also a prominent and paramount leader. In the long run, it has to enhance Chinese’s alien practices in the region, because power is bound to be misuse. Moreover, China’s increasing engagement in domestic policies of Afghanistan and Pakistan has been also triggered alarming among its neighbourhood, particularly India. Because of the fact that India are one the Chinese’s neighbouring countries that fought a war with it in 1962.

The CMSR consists of a network of infrastructure projects, oil shipping lane and staging posts stretching from its eastern coast to the Middle East along the great trade arteries in order to gain strategic clout and naval access. Since china cannot become a global leader only on the basis of its economic power. Hence china is used to achieve larger political and strategic objectives through its maritime silk route. Maritime Silk Road initiative is designed to make China the hub of a new order in Asia and the Indian Ocean region. It should be underlined that China will deliberately use its overseas infrastructure projects to enlarge China’s commercial and strategic interests in the region.

As far as One Belt One Road is concerned.  We have come to a conclusion that OBOR initiative which is led by China’s president Xi Jinping, based upon some principles that would bring about Beijing’s strategic foreign policy transformation and also an expression of China’s claim to be a ‘great power’. These doctrines are:

1.     Concept of Hub and Spoke principle

2.     String of Pearls concept

3.     Gunboat diplomacy concept

4.      At full stretch strategy

The OBOR initiative is a part of Chinese’s concept of Hub and Spoke principle, in which china serves as a Hub and Russia as a Spoke. The String of Pearls strategy term was coined by U.S. consultancy firm Booz Allen Hamilton in 2005. It is a geopolitical theory regarding the potential Chinese intention in the Indian Ocean region. It is a system where security is guaranteed by Chinese military power. This concept had to forced Indian navy in 2007 to establish its own doctrine, known as Indian Maritime Doctrine that describes active Indian naval presence from the Strait of Hormuz to the Strait of Malacca. Gunboat diplomacy is not only to counter and challenge Japan in the East China Sea and but at the same time it will further also deploy to enhance china’s presence and safeguard Chinese’s interests and objectives and to control over some of the world’s most strategic Waterways in the South China Sea as well, and would pave the way for making China a big player in the Indian Ocean region. This is why, it has been said that Beijing has been desperately making an attempt to build a navy base in the Indian Ocean. Because of the fact that the Indian Ocean has a great vogue for a Sino-centric Asia. Ultimately it expands china’s sphere of influence to the strategic domain. In this view, china’s assertiveness and aggressive maritime strategy has come to light as the biggest challenge in the Indo-Pacific region as well as its neighboring countries.

These Chinese’s strategies not only paving the way for controlling of Global waterways and fuel assets but it must be emphasized that it could also replace America world view or pax Americana and would finally get transform world order into china world view or pax sinica. This is also part of overall plan that underscore entire Chinese moderation and development process.