CPEC to become cornerstone of Pak’s fastest economic growth: SIPRI

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ISLAMABAD: China’s reliance on CPEC means that it needs a stable and prosperous Pakistan, says a report by the Stockholm International Peace Research Institute (SIPRI) — a Sweden-based think tank.

The CPEC that is major and a pilot project of Silk Road Economic Belt initiative may become one of the cornerstones of Pakistan’s fastest economic growth, it added.

About the India’s opposition to the CPEC, the report stated that it stems from its fear of internationalisation of the Kashmir dispute and the growing influence of China in the Indian Ocean, says a new report by one of the most influential global think tanks.

There is considerable concern within India that China, which has been neutral on Kashmir since 1963, can no longer be so now that its economic and security interests in these territories are growing in the stake.

The report titled “Silk Road Economic Belt – considering security implications and the EU-China cooperation prospects” — argues that India does not want a mediating role for China in these disputes. It is the first report by any global think tank that has discussed in detail the Indian concerns on CPEC.

Read more: CPEC construction to strengthen Sino-Pakistan ties: Chinese envoy

The report has also shed light on implications of the ‘One Belt One Road’ initiative on security dynamics and its compatibility with the EU interests.

The Sipri report says CPEC has raised political temperatures in India and Pakistan. “India strictly opposes CPEC, and while the Economic Belt is not a harbinger of a new conflict, it has so far intensified historic competition over influence in South Asia,” note authors of the report.

The report argues that there is a factual and conceptual objection to CPEC in India. The factual objection is that India does not want to internationalise the Kashmir dispute it has with Pakistan. Chinese activity in the disputed areas automatically makes it a stakeholder in these disputes.

At the conceptual level, CPEC allows China to gain a toehold in the Indian Ocean through direct access to the Arabian Sea. There remain concerns that this might develop a military dimension at some stage, according to the report.

Since territorial compromise from either India or Pakistan is a political suicide for any of the ruling parties, it remains to be seen whether CPEC will contribute to a resolution of this dispute or further fan the flames.

There is also a concern in India that China will use Gwadar port to observe Indian naval activity and possibly even exploit it for an expansion of China’s own naval presence. There is also a concern in India that while CPEC in the short and medium term could be an opportunity to generate jobs and growth in Pakistan, over the longer term its strategic consequences could reshape the regional balance of power in favour of China and limit India’s geopolitical reach.

The assertiveness and swiftness of Chinese actions in the South China Sea have implanted a preoccupation among China’s critics in India that if China gains a foothold in the Arabian Sea and, as an extension, in the Indian Ocean through Gwadar, it might make national interest claims in India’s maritime sphere too. “After all, if Gwadar grows to be the immense port China envisions it to become, China will need to take on a bigger direct or indirect security role,” it says.

The Sipri report noted that unlike in India, CPEC has not raised concerns in Afghanistan. Afghanistan is open to all regional initiatives that could reactivate its ailing formal economy, whether that is by way of CPEC or India-led efforts to connect with the Afghan economy through the Chabahar Port in Iran. Iran has not opposed CPEC and has expressed strong interest in the Belt and Road Initiative.

However, the report argues that Afghanistan is unlikely to benefit from CPEC unless Kabul-Islamabad relations improve. For this to happen, Pakistan’s security concerns with regard to Afghanistan need to be assuaged. The authors note that CPEC has the potential to exacerbate three fault lines in South Asian security.

Read more: KP govt decides to construct technology city under CPEC in Nowshera

6 COMMENTS

    • India is the enemy not of Pakistan but all muslims.Chinese investment in Pakistan is good for Pakistan's security and prosperity.

    • It is better to be sucked by chinese than by Indians.Thanks to China Russia Iran and Pakistan’s synergy the whole region will benefit and thats what is required.I resquest Indians to rethink their strategy and surrender their ego and join CPEC .

    • It is habit of India to suck territories from Kashmir, Nagaland, Hyderabad, Goa, Junagadh, Sikkim to Assam etc

      • First time I have seen other people mention those territories other than myself. We need more people like this.

  1. CPEC will furnish the whole building in terms of Economic growth, regional connectivity and stability, building energy and road infrastructure, public benefits and most of all Peace in the region.
    And Kashmir dispute will definitly globalise as India will put efforts to destablise things in response to China access in the region.

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