China Pakistan Economic Corridor

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 4

This would cover another statement as well: China is playing by the same book followed by

US

China Pakistan economic corridor (CPEC):

It is part of BRI of China. There are 6 corridors under BRI (China central Asia and Europe,
China central Asia Iran corridor, ASEAN corridor, China ASEAN economic corridor, China India
Bangladesh and Myanmar economic corridor, and China Pakistan economic corridor).

BRI comprised upon transport projects like Bullet train projects, network of motorways and
highways, dry ports, and a series of sea ports. Another major part of bri is investment in
energy sector like investment in the oil and gas fields, oil and gas pipelines, clean energy like
solar projects wind projects and in certain cases there are civil nuclear projects too. Third
major dimension of BRI is investment in special economic zones. There would be 100-150
SEZ established under BRI. Majority of these SEZ will be in neighboring nations of China like
Central Asia, south Asia and ASEAN. Fourthly, there will be investment in the agriculture
sector of the neighbors of Chine especially in south Asia and central Asia_ in crops lives stock
and fisheries.

OBJECTIVES OF BRI:

1. Shorter access to the market:

China traditional trade route is phenomenally lengthy. It takes more than 39 days by
Chinese ships to reach England from Shanghai. Whole China Europe corridor will
decrease the distance to just 11 days. Similarly, it take 26 days to reach from
Shanghai to Saudi Arabia while through CPEC it will be reduce to 10-11 days decrease
route by 12000km. it will have a lot of benefits for China like less transportation cost
will decrease and timely access to market

2. Alternative trade route for China:

China has only one trade route south China sea-Bay of Bengal - Arabian sea- and
beyond. China has security issues due to strait of Malacca. Which is heavily guarded
by US through its allies. In case of, war US can choke strait of Malacca. Therefore,
China is building alternative shorter and safer corridor which will provide it shorter
and faster access to the market. Secondly, the sea routes being controlled by US and
China cannot replace US navy in the International Water therefore, oit decided to
develop land routes comprising upon bullet train projects shorter and faster this
would encourage the different part of Asia to trade with each other through BRI.
Future trade between Asia and Europe will be transfer to this corridor

3. China has adopted the strategy of collective growth:

US linked dev of Europe Japan Australia Korea and ASEAN with its own dev. China has
also adopted the same strategy it has linked the dev of south Asia, central Asia
ASEAN, African region, Russia and eastern Europe. by dev the industrial agricultural
energy and transport infrastructure.

4. China wants to influence the decision-making process of govt of BRI countries:

US influenced majority of its allied countries through the provision of loans, aid,
industrialization etc. resultantly, the decision-making process of the pro US countries
was influenced by Washington in its on paiver. China has adopted the same strategy,
its making investment in Agri, transport and energy of the BRI countries. Resultantly,
more than 60 countries decision making process will be influence by China.

5. Through BRI China wants its socio-cultural influence:

The economic outreach is always accompanied by sociocultural expansion. US made


investment and provided loans and aid to series of countries across the world this
was accompanied by expansion of English language, increasing no of Americans
visiting these countries, and most imp transforming the political system of these
countries. The same seems to be the strategy of the Beijing. The project has resulted
in increasing no of Chinese employees in BRI countries, increase in Chinese learning
programs, and Confucius schools being opened across BRI countries that will
promote Chinese ideology.

6. To transform China into a transit corridor:

The 6 corridors will connect different part of Asia on one hand and Eurasia on the
other. All these countries will start trading through Bri because the routes will be
shorter and faster. It will be better alternative to all these countries than sea. All
these corridors will pass through China and particularly western China: Xinjiang.
China will become a transit corridor for more than 60 countries of Asia and Europe.

7. China needs to fulfill its Agri demands:

China one the largest producer of Agri good in the world but at the same time world
largest consumer therefor it local demand cant fulfill the local demand so it become
largest importer of Agri goods. Majority of goods are imported from USA.
Furthermore, there has been tremendous Inc. in Agri demand of China in last two
decades. In 2015 the total Agri consumption was around 800billion USD while in
2025 it would be around 1300billion USD. Therefore, China has to invest In Agri
sectors of its neighbor in order to meet its demand

Belt And Road Initiative (BRI) VS India- Middle East-Europe Corridor (IMEC):

Belt and road initiative (BRI) of China launched in 2013 is the biggest infrastructure project of
21st century comprising upon 6 corridors that will connect different part of Asia on hand and
Eurasia on the other. These corridors will comprise upon investment in transport, energy,
industry and Agri sector. IMEC on the hand is Saudi Arabia led supported by US India and
Europe. Its primarily transportation projects that will connect Asia with Europe both the
projects are being compared by geo political and geo economic scientist. Some even project
IMEC is competitive project to BRI.

BRI VS IMEC Investment in the Transportation Sector:

Both the projects are primarily transport base projects. BRI is the project of China that
comprised upon 6 corridors like (China central Asia and Europe, China central Asia Iran
corridor, ASEAN corridor, China ASEAN economic corridor, China India Bangladesh and
Myanmar economic corridor, and China Pakistan economic corridor). This project is primarily
comprising upon bullet train projects, dry ports, network of motorways and highways and
series of sea ports around the world will be built under the BRI. On the other hand, IMEC is a
ship and train corridor where dependency on the traditional sea route is maximum. From the
India to UAE, it will be the same sea route and from Israel to Greece through Mediterranean
Sea. The major focus is on bullet train projects from UAE-Saudi Arabia-Jordan-Israel. In Bri
there are multiple routes while in IMEC there is 1 route. BRI is mainly bullet train project and
the network of motorways and highways while IMEC is still mainly dependent on old sea
route only the addition of bullet train from UAE to Israel is new to it.

BRI VS IMEC INVESTMENT IN THE ENERGY SECTOR:

After transportation sector BRI is focusing on investing in energy sector. There is an


increasing investment in the hydrocarbon sector of Russia, CARs, Iran and middle east both
in the exploration, and pipeline sector. This initiative also focuses on clean energy projects
like solar, wind, hydel and even civil nuclear projects. Investment in hydrocarbon sector is to
meet demand of China while investment in the clean sector is to promote decarbonization
efforts and find new markets for solar and wind market of China.

IMEC on the hand doesn’t mainly focusing in the hydrocarbon sector, but there is more focus
on transportation of hydrocarbon through train and ships. Furthermore, it will focus more on
climate reparation by investing in clean energy projects especially in solar and wind projects
but here China is and will be major investor in energy

BRI VS IMEC Investment in the Industrial Sector:

One of the major focus of BRI is the investment in the industrial zones across Asia eastern
Europe and Africa. There would be approx. 200-250 industrial zones built under BRI. Most of
these zones will in south Asia, central Asia, ASEAN and eastern Europe. On the hand, IMEC
doesn’t focus on industrialization. It is mainly a transport project where India, Saudi Arabia
and Greece will the major center of project.

BRI VS IMEC Investment in the Agriculture Sector:

One of the main objectives of BRI is promoting the Agri productivity of neighbor primarily in
South Asia, central Asia, and ASEAN. In order to meet the demand of China on one hand and
world on the other. IMEC on other hand have no focus investing in the Agri sector. India itself
is focusing on enhancing to increase it Agri capacity, Europe has already increase its Agri
capacity while Middle East is mostly desert area not friendly for agriculture if there is any
effort for turning middle east green is either made by China or middle eastern countries on
their own but it is not part of IMEC

BRI VS IMEC future of tourism:

Tourism is one of the major contributors in global economy. It can be promoted in areas
where there is tourism attraction on one hand transportation system on the other. One of
the major aims of BRI is to promote tourism not only in China but in all member nations as
there are road and railway projects in BRI. IMEC will also promote tourism India and UAE are
already attracting millions of tourists each year. Now, Saudi Arabia is also focusing on tourism
by building NEOM project on one hand while IMEC on other

BRI VS IMEC are they truly in competition with each other:

The Indian American and central Europeans geopolitical scientist are trying to project IMEC
as competitive project to BRI. They think that IMEC will potentially challenge BRI in days to
come. To understand that we need to at certain facts: BRI has turned 10 in 2023. A series of
motorways and highways under CPEC, central Asia and ASEAN has already been completed
or under construction. A series of dry port and sea ports are either being completed or under
construction. On the other hand, there is not a single project under IMEC either announce or
initiated

Furthermore, there has been an investment of more than 200billion USD by China under BRI.
Around 30 billion USD is invested in Pakistan under CPEC, more than 40 billion USD in CARS,
at least 15billion in Iran and 10 billion in Bangladesh. And process of investment is continued
at least 1.3 trillion USD will be invested in coming in coming decade. IMEC still not
completely drawn on the paper. It was announced in G20 meeting in India in 2023. The total
investment announced by Saudi arabia will be 30billion USD in IMEC. US and Europe is facing
economic crisis to invest in corridor, India also doesn’t have enough money supply, Saudi
arabia and UAE also doesn’t have capacity to make IMEC compete with BRI.

In fact, Saudi Arabia, UAE and other Middle Eastern countries would not want IMEC to be in
competition with BRI. Mainly because they do not have the economic potential to compete
China. Secondly, China is the biggest trading partner of Middle east. Therefore, it doesn’t
suite them to compete with China.

You might also like