Echo_419
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An analysis of China-Pakistan Economic Corridor
Background
The China–Pakistan Economic Corridor (CPEC) is a ongoing development Infrastructure project which aims to transform the Pakistani economy by connecting Gwadar Port in southwestern Pakistan to China’s northwestern region of Xinjiang, via a network of Roads, railways and pipelines to transport oil,gas and other essential Naturalresources.The economic corridor is considered to be the bedrock to further strengthen and expand Sino–Pakistan ties and will run about 3,000 km(Approx) from Gwadar to Kashgar.Total Chinese investment in this mammoth infrastructure project is around $46 billion , the entire project expected to be completed in few yearstime.The Corridor is an extension of China’s proposed 21st century Silk Road initiative and the one bed & belt initiative. Both governments see this as less as a Infrastructure project and more as a master stroke that will transform transform the Pakistani economy—and potentially China’s global standing.
The Asian Development Bank terms the project as “CPEC will connect economic agents along a defined geography. It will provide connection between economic nodes or hubs, centered on urban landscapes, in which large amount of economic resources and actors are concentrated. They link the supply and demand sides of markets.”
China
Blue line is the existing route and Red line is the new route proposed via Pakistan
For China the corridor bring unlimited benefits,when the construction of the corridor will be completed, it will expand the number of trade routes between China,Africa and the middle east. Energy security is a prime concern for China, as it is the world’s biggest energy consumer and importer, and oil pipelines crisscrossing through Pakistan would reduce the travel time by a significant amount,not to forget it would also increase Chinese Energy security by bringing energy supplies directly from the middle east and Africa to China’s North west via a ally nation (Pakistan) bypassing the Indian ocean and South East Asia where Ships carrying Oil can be easily blockaded by the Americans or Indians.
More than half of the worlds proven oil reserves are located in the middle east.middle east is one of the top suppliers of crude to the Chinese,so much so that almost half of China’s daily consumption of oil is met by middle easternimports.Until this very moment all of this volume has was being moved by see borne oil tankers covering some 10,000 miles to reach the Chinese coast.The oil tankers in their journey to Chinese mainland have to go through vast oceanic territory ruled by hostile navies,not to forget the perilous choke point of the straight of Malacca which can be easily blocked by the Indian or US navies.Thisleaves Beijing in a very tough position on the energy security front,because more than half of Beijing’s crude is imported through sea and is still growing.US’ssuperior naval forces in the region can be used to shut this traffic down anytime & Beijing will not be able to do anything.
This is where Pakistan comes in,once the corridor is completed it will expand the number of trade routes between China, the Middle East and Africa. Energy security,which is a primary concern for China will be addressed as oil pipelines through Pakistan would cut out ocean travel through Southeast Asia.Thecorridor will also provide China access to new markets for it’s goods in South Asia.
Pakistan
Pakistan today is starved for Foreign investment due to its security situation, there is a huge negative perception with regards to capability and ability as a sourcing destination of goods and services. Foreign companies might set up distribution networks in future to cater domestic demand but hopes for it being a export hub is little to none.
Govt of the day needs to change the perception and make a start somewhere however exorbitant the cost and CPEC is that start . If they manage to ope-rationalize it successfully then it will be a signal that Pakistan is truely open for business and its cheap labor and young educated demographic is an alternative to India/Bangladesh/ South East Asia and likes. CPEC thus is an entry ticket to get into the economic prosperity game and not about winning the wining thegame.In addition CPEC is a useful tool to convince the domestic population of Pakistan that the Nawaz Sharif Government is not wasting time and is doing work for their benefit of the Pakistani people.
After withdrawal of complete withdrawal of NATO forces from Afghanistan no major power will have any stake in Pakistan.However CPEC changes that not only it grantees a permanent Chinese presence in Pakistan,it also insures Pakistan’s stability.This massive Chinese investment in Pakistan will forge a strong China Pakistan nexus in addition of granting Beijing a way to insert themselves into the Indo – Pakistan Equation which is a good thing for stability of Pakistan. China will also not want a weakened Pakistan as it does not want a Indian dominated South Asia threatening it’s interests in the region.
Conclusion
China-Pakistan Economic Corridor is a very Critical Infrastructure project for both the countries.Thecorridor is a mutually beneficial project which full fills the objectives of both the nations.For China it provides a alternate secure route to import Energy and find new markets for it’s goods andservices.For Pakistan it helps counters Indian influence in the region,position itself as a major transit point connecting Eurasian region with South Asia and South East Asia & provide a much needed base to kick start it’s economic growth
DISCLAIMER
THIS BLOG claims no credit for any images posted on this site unless otherwise noted. Images on this blog are copyright to its respectful owners. If there is an image appearing on this blog that belongs to you and do not wish for it appear on this site, please E-mail with a link to said image and it will be promptly removed.
@farhan_9909 @cb4 @Leader @mr42O @Akheilos
Background
The China–Pakistan Economic Corridor (CPEC) is a ongoing development Infrastructure project which aims to transform the Pakistani economy by connecting Gwadar Port in southwestern Pakistan to China’s northwestern region of Xinjiang, via a network of Roads, railways and pipelines to transport oil,gas and other essential Naturalresources.The economic corridor is considered to be the bedrock to further strengthen and expand Sino–Pakistan ties and will run about 3,000 km(Approx) from Gwadar to Kashgar.Total Chinese investment in this mammoth infrastructure project is around $46 billion , the entire project expected to be completed in few yearstime.The Corridor is an extension of China’s proposed 21st century Silk Road initiative and the one bed & belt initiative. Both governments see this as less as a Infrastructure project and more as a master stroke that will transform transform the Pakistani economy—and potentially China’s global standing.
The Asian Development Bank terms the project as “CPEC will connect economic agents along a defined geography. It will provide connection between economic nodes or hubs, centered on urban landscapes, in which large amount of economic resources and actors are concentrated. They link the supply and demand sides of markets.”
China
For China the corridor bring unlimited benefits,when the construction of the corridor will be completed, it will expand the number of trade routes between China,Africa and the middle east. Energy security is a prime concern for China, as it is the world’s biggest energy consumer and importer, and oil pipelines crisscrossing through Pakistan would reduce the travel time by a significant amount,not to forget it would also increase Chinese Energy security by bringing energy supplies directly from the middle east and Africa to China’s North west via a ally nation (Pakistan) bypassing the Indian ocean and South East Asia where Ships carrying Oil can be easily blockaded by the Americans or Indians.
More than half of the worlds proven oil reserves are located in the middle east.middle east is one of the top suppliers of crude to the Chinese,so much so that almost half of China’s daily consumption of oil is met by middle easternimports.Until this very moment all of this volume has was being moved by see borne oil tankers covering some 10,000 miles to reach the Chinese coast.The oil tankers in their journey to Chinese mainland have to go through vast oceanic territory ruled by hostile navies,not to forget the perilous choke point of the straight of Malacca which can be easily blocked by the Indian or US navies.Thisleaves Beijing in a very tough position on the energy security front,because more than half of Beijing’s crude is imported through sea and is still growing.US’ssuperior naval forces in the region can be used to shut this traffic down anytime & Beijing will not be able to do anything.
This is where Pakistan comes in,once the corridor is completed it will expand the number of trade routes between China, the Middle East and Africa. Energy security,which is a primary concern for China will be addressed as oil pipelines through Pakistan would cut out ocean travel through Southeast Asia.Thecorridor will also provide China access to new markets for it’s goods in South Asia.
Pakistan
Pakistan today is starved for Foreign investment due to its security situation, there is a huge negative perception with regards to capability and ability as a sourcing destination of goods and services. Foreign companies might set up distribution networks in future to cater domestic demand but hopes for it being a export hub is little to none.
Govt of the day needs to change the perception and make a start somewhere however exorbitant the cost and CPEC is that start . If they manage to ope-rationalize it successfully then it will be a signal that Pakistan is truely open for business and its cheap labor and young educated demographic is an alternative to India/Bangladesh/ South East Asia and likes. CPEC thus is an entry ticket to get into the economic prosperity game and not about winning the wining thegame.In addition CPEC is a useful tool to convince the domestic population of Pakistan that the Nawaz Sharif Government is not wasting time and is doing work for their benefit of the Pakistani people.
After withdrawal of complete withdrawal of NATO forces from Afghanistan no major power will have any stake in Pakistan.However CPEC changes that not only it grantees a permanent Chinese presence in Pakistan,it also insures Pakistan’s stability.This massive Chinese investment in Pakistan will forge a strong China Pakistan nexus in addition of granting Beijing a way to insert themselves into the Indo – Pakistan Equation which is a good thing for stability of Pakistan. China will also not want a weakened Pakistan as it does not want a Indian dominated South Asia threatening it’s interests in the region.
Conclusion
China-Pakistan Economic Corridor is a very Critical Infrastructure project for both the countries.Thecorridor is a mutually beneficial project which full fills the objectives of both the nations.For China it provides a alternate secure route to import Energy and find new markets for it’s goods andservices.For Pakistan it helps counters Indian influence in the region,position itself as a major transit point connecting Eurasian region with South Asia and South East Asia & provide a much needed base to kick start it’s economic growth
DISCLAIMER
THIS BLOG claims no credit for any images posted on this site unless otherwise noted. Images on this blog are copyright to its respectful owners. If there is an image appearing on this blog that belongs to you and do not wish for it appear on this site, please E-mail with a link to said image and it will be promptly removed.
@farhan_9909 @cb4 @Leader @mr42O @Akheilos
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