Chinese president’s Saudi visit to boost investment in China-Pakistan corridor project

[omegared]

https://www.arabnews.com/node/2212576/world

Chinese president’s Saudi visit to boost investment in China-Pakistan corridor project: Experts​

Xi arrived in Riyadh on Wednesday for a three-day visit aimed at bolstering trade ties and expected to lead to a “strategic agreement” between the regional powers. (SPA)

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Chinese president’s Saudi visit to boost investment in China-Pakistan corridor project: Experts

ISLAMABAD: Pakistan will benefit from stronger Saudi-China relations, experts said on Wednesday, as the visit of Chinese President Xi Jinping to the Kingdom was expected to bring in more investment to the China-Pakistan Economic Corridor project. Xi arrived in Riyadh on Wednesday for a three-day...

arab.news

Updated 07 December 2022
SAIMA SHABBIR
December 07, 202223:33
1885

• Xi Jinping scheduled to meet other Arab leaders while visiting Kingdom
• $65bn CPEC project an economic corridor in Pakistan connecting China to Arabian Sea

ISLAMABAD: Pakistan will benefit from stronger Saudi-China relations, experts said on Wednesday, as the visit of Chinese President Xi Jinping to the Kingdom was expected to bring in more investment to the China-Pakistan Economic Corridor project.
Xi arrived in Riyadh on Wednesday for a three-day visit aimed at bolstering trade ties and expected to lead to a “strategic agreement” between the regional powers.
The Chinese leader was due to meet Crown Prince Mohammed bin Salman and other heads of state from Gulf Arab nations when Saudi Arabia hosts China-Gulf and China-Arab summits in its capital.
Saudi Arabia and China were expected to sign more than 20 initial agreements worth more than $29.3 billion during Xi’s trip. The two countries were also discussing a plan to harmonize the implementation of Vision 2030 and China’s Belt and Road Initiative.
CPEC, a $65 billion economic corridor in Pakistan that connects China to the Arabian Sea and is part of Beijing’s infrastructure initiative, was also expected to feature in Xi’s meetings with the crown prince.
“Saudi Arabia is interested in becoming part of CPEC by investing heavily in it and also interested in BRI and this visit will improve things in this regard as China is the main initiator of both mega projects,” Pakistan’s former ambassador to China, Naghmana Hashmi, told Arab News.
Saudi Arabia, alongside the UAE and Germany, is among countries that have expressed interests in investing in CPEC. In 2019, the Kingdom announced plans to set up a $10 billion oil refinery in Pakistan’s deep-water port of Gwadar on the Arabian Sea.
CPEC is a sprawling package that includes everything from road construction and power plants to agriculture. In the South Asian nation, it has been billed as a massive development program that will bring new prosperity, where the average citizen lives on just $125 a month.
“The growing friendship between China and Saudi Arabia will benefit Pakistan as the country has very good relations with both, and both are pillars of strength for us,” Hashmi said.
International relations expert Zafar Jaspal told Arab News that the visit would have a “constructive and positive impact on CPEC” and “open the way for Saudi investment.”
Xi’s trip to Riyadh could serve as a “great convergence point” between Pakistan, China, and Saudi Arabia, according to Dr. Huma Baqai, an international relations expert and rector of the Millennium Institute of Technology and Entrepreneurship in Karachi.
“The visit can give the requisite push and momentum to the intended Saudi investment in the flagship project of the BRI,” she told Arab News.

 

[omegared]

This could be a game changer.

We need a big push with CPEC and finally become a real energy and trade corridor for China.

This will also piss off the Indians and Americans, We can expect more attacks in Balochistan and from Afghanistan.
We can also expect more action on China /India border, in particular if India wants Azad Kashmir.


If Pakistan plays its card right we should have energy supplies from gulf Arab nations and Iran going to China
Also materials, goods and agriculture coming and going to China, via Pakistan.

The enemies of China believe they can use sea power to stop vital Chinese imports arriving into the ports,
the Indians in particular think they can block Chinese trade the malacca straits,
This could negate both.

 

[Menace2Society]

This could be a game changer.

We need a big push with CPEC and finally become a real energy and trade corridor for China.

This will also piss off the Indians and Americans, We can expect more attacks in Balochistan and from Afghanistan.
We can also expect more action on China /India border, in particular if India wants Azad Kashmir.


If Pakistan plays its card right we should have energy supplies from gulf Arab nations and Iran going to China
Also materials, goods and agriculture coming and going to China, via Pakistan.

The enemies of China believe they can use sea power to stop vital Chinese imports arriving into the ports,
the Indians in particular think they can block Chinese trade the malacca straits,
This could negate both.

All well and good and being a good ally of China. But what does Pakistan get out of this?

Wouldn't it have been better if first they had borrowed say $100 billion from China and defer repayment for 15 year, invested directly into education, healthcare and heavy machinery and high value exports along with technical schools? Wouldn't that bring an immediate impact? Then you can focus on infrastructure when there is more demand for Pakistan too.

Pakistan could have set up these business parks along the corridor for a few rupees. I really don't think a $60 billion loan which mainly focuses on Chinese requirements as a good deal. Sounds like Sharifs took some kickbacks to push this through.

 

[Thəorətic Muslim]

How many $Billion in tolls on freight transport to China has CPEC collected so far?

 

[omegared]

All well and good and being a good ally of China. But what does Pakistan get out of this?

Wouldn't it have been better if first they had borrowed say $100 billion from China and defer repayment for 15 year, invested directly into education, healthcare and heavy machinery and high value exports along with technical schools? Wouldn't that bring an immediate impact? Then you can focus on infrastructure when there is more demand for Pakistan too.

Pakistan could have set up these business parks along the corridor for a few rupees. I really don't think a $60 billion loan which mainly focuses on Chinese requirements as a good deal. Sounds like Sharifs took some kickbacks to push this through.

Good point,

If we play our cards right hopefully some transit fees,
Either way it will lead to more Chinese Investment in Pak and more business opportunities for us.
It will also be a geo political game changer.
In the next Pak-India war, China will be getting involved militarily.
China should take Aksai chin and we should take the rest of Kashmir.

 

[Menace2Society]

Good point,

If we play our cards right hopefully some transit fees,
Either way it will lead to more Chinese Investment in Pak and more business opportunities for us.
It will also be a geo political game changer.
In the next Pak-India war, China will be getting involved militarily.
China should take Aksai chin and we should take the rest of Kashmir.

Transit fees are pittance.

This corridor makes Chinese goods even cheaper and quicker to deliver. Where is the opportunity for Pakistan? Looks like its been set up as Pakistan feeding on the goods as they travel down to Gwadar making even more money for the Chinese.

Pakistanis exports have not evolved or grown since CPEC inception, isn't that a concern? Why is there zero impact on exports? Pakistan is so poor right now it can't even afford a $4 billion IMF loan, how does this justify a $60 billion loan?

China and Pakistan are allies regardless, a military alliance is expected, Pakistan taking on a loan shouldn't need to guarantee this. Sounds like its strings attached if it does.