September 21, 2025
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Syllabus: General Studies Paper 2
Context:
The chief of the China-Pakistan Economic Corridor (CPEC) Authority has accused the U.S. of sabotaging the multi-billion dollar project, the economic lifeline of Pakistan.
Background
- The ambitious CPEC was launched in 2015 when Chinese President Xi Jinping visited Pakistan.
- It aims to connect western China with the Gwadar port in southwestern Pakistan through a network of roads, railways and other projects of infrastructure and development.
Key Points
- From the Pakistan point of view of the emerging geostrategic situation, one thing is clear: the United States supported by India is inimical to CPEC.
- Islamabad is the seventh-largest recipient of Chinese overseas development financing with 71 projects worth $27.3 billion underway as part of the CPEC.
- The U.S. and India continue to “make attempts to manoeuvre Pakistan out of” China’s Belt and Road Initiative (BRI) under which the Chinese government has been investing heavily in about 70 countries.
Significance of Belt and Road Initiative
- In the wake of the global slowdown, BRI offers a new model of development to China to maintain its economic growth. OBOR envisions building networks of roadways, railways, maritime ports, power grids, oil and gas pipelines, associated infrastructure projects which helps the Chinese economy.
- BRI has a domestic and international dimension: as it visualises a shift from developed markets in the west to developing economies in Asia, Africa And a shift in China’s development strategy concentrating on provinces in central and western China instead of the developed east coast region.
- Strategically important as China utilizes its economic clout to build its soft power.
Criticism and Issues with Belt and Road Initiative
- Debt-trap diplomacy of China where BRI projects are pushing recipient countries into indebtedness and do not transfer skills or technology. For instance, Hambantota port, where Sri Lanka was forced to lease the port to China for 99 years. Also, there has been rethinking of projects in Malaysia, Maldives, Ethiopia and even in Pakistan.
- BRI represents the political and economic ambitions of China, making countries like the US, Japan, Germany, Russia, and Australia unhappy about the impact of Beijing’s moves on their own economic and political interests.
- China-Pakistan Economic Corridor (CPEC), an important component of BRI, passes through Pakistan-Occupied Kashmir, which is the main reason for India signalling its displeasure over BRI and not participating in both the BRFs.
India boycotting Belt and Road Initiative (BRI) Project
- CPEC violates India’s sovereignty as it passes through the part of the Pakistan-occupied Kashmir that belongs to India and no country can accept a project that ignores its core concerns on sovereignty and territorial integrity.
- India also raised concerns regarding unsustainable debt trap, environmental concerns, and transparency in assessment of project costs, and skill and technology transfer to help long term running and maintenance of the assets created by local communities.
- India is too big to be isolated and India’s continued objection will make China consider its core concerns.
The Hindu Link:
Question- Write a short note on the implications of the China-Pakistan Economic Corridor on India.
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