The China-Pakistan Economic Corridor Is More Important And Beneficial For China Then It Is For Pakistan

in business •  8 years ago 


 

Now we all are asking  ourselves why is China investing so heavily in CPEC (China-Pakistan  economic corridor)? Well this is a kind of comprehensive question. To  answer this question, let’s look at Malacca strait.


1.   China’s Malacca Dilemma: The ultimate reason for the huge  46 billion dollars CPEC is the famous “China’s Malacca dilemma.” The  Malacca strait is a narrow passage of sea near Singapore which is  controlled by American Navy. It is one of the busiest marine trade route  in the world. Almost all oil import of China along with Japan and ASEAN  countries pass through this Malacca bay. It is like mouth or opening to  contentious South China Sea. Almost 1/4th of global oil import passes  through the strait including almost all of goods which ends up landed in  Chinese ports of South China Sea. And US has been monitoring them which  is obviously unwanted by a country like China which is destined to  uproot US as the sole super power of world. So in case of a trouble by  state/non-state actors to Chinese security and sovereignty, if US halts  Chinese oil imports, entire Chinese economy would be paralyzed. China  has been desperately looking for alternatives to this by bypassing  Malacca strait and thus US. By far, it has got 2 such roots:- One is  CPEC through Gwadar Pakistan and another one is Sitawwe port through  Myanmar.


2.   Strategic Importance of Gwadar: Gwadar is strategically  well situated in the Arabian sea and near Persian gulf.. It is almost  600 kms away from Strait of Hormuz, which is the key oil route of the  world and at optimum distance from competent Indian coasts. The corridor  is a part of China’s ambitious “OBOR” (One Belt One Road) project which  aims to make global economy and trade China-eccentric. The CPEC reduces  both shipments time and the costs. China will save the distance by 6000  miles, time by almost 4 weeks and costs roughly in billions USD.


3.   A Pearl in India’s neighborhood: Gwadar is infamously  considered as a “Pearl” in Arabian sea. It is a part of alleged theory  of String of Pearls which claims that China is restricting Indian  influence by building/developing ports/naval bases around India’s  coasts. So that should a conflict arises in future with India, China  would have an edge by surrounding India in all directions. It is  believed that China is developing Gwadar as a long term commercial port  as well as naval base.


4.   China-Pakistan Honeymoon destination: Nothing new is  required to be added in this regard. Both are opponents of India in  almost every platform, be it global or local. Anyway Pakistani economy  is already sacked and rolling over the stones, the hefty 46 billion CPEC  can bring considerable employment opportunities in the rogue nation.  Gwadar is situated in Baluchistan province, where undoubtedly RAW is  pretty much active. Pakistan is hoping to stabilize already burning  Baluchistan by CPEC. It is also bringing lofty bribes to Pakistani army  officials also as well as also drawing an irk out of Indian side.  Although Baluch are opposing CPEC siting it as Pakistani instrument to  denying their sovereignty, the project is taking place by all means of  low priced Chinese workers.




   By looking at the map above China doesn’t have any natural port  available to it, there is a long-standing dispute as well on the South  China Sea. Gwader Port in Baluchistan, one of the largest port in  Pakistan is a natural port and Baluchistan itself houses a lot of  natural resources especially natural gas. The map above shows the new  route from Kashgar in China to Baluchistan provides a safe route for  Chinese goods to be transported faster and easier at very low price. The  earlier route; which encompasses from Beijing via Shanghai via Hong  Kong passing through the Oceania region increases the travel time and  the cost as well. With the new route; CPEC is one of the shortest route  for Chinese to enter the middle and central Asia easily thus increasing  their trade linking. Another look at the map you will notice that the  area of Eastern Africa is not so safe for trade and repeated attacks  from the locals as the pirates disturb the trade pattern.


   In addition, Chinese navy ships will be positioned at Gwadar along  with the Pakistan navy warships to guard the port and keep the sea lanes  free from enemy attacks. The purpose is to counter the formidable  Indian navy and the US navy base at Diego Garcia south of Gwadar. The Chinese navy will now have a blue water presence in the Indian  Ocean. China and Pakistan are all-weather friends and have a strategic  relationship, and for both the common enemy is India. Also a worry to  China is the blossoming India-American strategic partnership. America  has a significant presence in the Persian gulf and the Arabian Sea. If  the Chinese navy positions warships at Gwadar the  threat to the US and Indian navy will be significantly increased. The  road and port have been built by the Chinese in a record time of 2  years. 


   The economic corridor from Sinkiang to Gwadar will greatly help  China. Pakistan's only gain is the positioning of Chinese warships at  Gwadar as a counterpoise to the Indian navy. Both India and the US  cannot be happy with this development and will now have to alter their  strategic plans. There is further cause for worry, as the Russian  security chief has visited the Gwadar port to assess if it could be used  by Russia. The Russians have expressed interest in the Pak-China  economic corridor and use of the port at Gwadar. Maybe it is the  beginning of a Pak-China- Russia axis and will increase the threat to US  interests in the region. Russian warships at a later stage could also  use the Gwadar port. Such a development could change the entire  strategic scenario in the Indian Ocean and Arabian sea.

   

   Thanks for reading! Please check out my other posts on Steemit, and reach out to connect with me here! 

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Nice post @asifali4950

Thanks.

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http://us.blastingnews.com/opinion/2016/11/chinese-navy-warships-at-gwadar-port-in-pakistan-cause-for-alarm-for-usa-001289817.html