Second Phase of China-Pakistan Economic Corridor (CPEC)

Why in the News?

Pakistani PM is on a formal visit to China to attend the formal announcement of the second phase of the China-Pakistan Economic Corridor (CPEC-II).

About CPEC-II

CPEC’s next phase shifts focus from infrastructure and energy to sectors like agriculture, Pakistan Railways’ Main Line-I (ML-1) upgrade, and realignment of the Karakorum Highway.
CPEC was initiated in 2015 as part of President Xi Jinping’s Belt and Road Initiative (BRI).

Why CPEC-II?

It will provide Pakistan with a strategic advantage in terms of trade and commerce
CPEC-II includes significant investments in the energy sector, which will help overcome Pakistan’s chronic power shortages and ensure a stable supply of electricity
Provides a shortcut for China’s access to the Persian Gulf to secure oil imports, and
Stimulate industrial and economic activity in Pakistan.

Belt and Road Initiative (BRI)

The Belt and Road Initiative, formerly known as One Belt One Road, is a global infrastructure development strategy adopted by the Chinese government in 2013.
It will invest in nearly 70 countries and international organizations.
Infrastructure projects include ports, railways, highways, power stations, aviation and telecommunications.
“Belt” refers to the overland routes for road and rail transportation, called “the Silk Road Economic Belt”; whereas “road” refers to the sea routes or the 21st Century Maritime Silk Road.
The project has a target completion date of 2049 which coincides with the 100th anniversary of the People’s Republic of China.

India’s Concerns

Sovereignty Concerns: India expresses reservations as CPEC traverses through Pakistan-occupied Kashmir (PoK), challenging territorial sovereignty and potentially bolstering Pakistan’s claim over the region.
Geostrategic Implications: The expansion of Gwadar port under CPEC extends China’s “String of Pearls” around India, prompting concerns over regional power dynamics.

CPEC’s Progress so Far

Mixed Outcomes: The initial phase of CPEC primarily addressed infrastructure, energy, and port development projects, with progress showing variations.
Project Status: While several power projects have been completed, significant delays and challenges persist in transport-related projects and Special Economic Zones (SEZs).

Challenges and Roadblocks

Slow pace: Gwadar, despite being the epicentre of multibillion-dollar projects, lacks basic necessities like reliable access to water and electricity, let alone other facilities.
Baloch freedom movement: This is another impediment to the stalled project where Chinese officials are targeted and killed.
Consistent security threat: China is also seeking to deploy its Army in the CPEC projects, to which Pakistan has contested.

PYQ:

[2018] The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same. (150 Words, 10 Marks)

[2016] ‘Belt and Road Initiative’ is sometimes mentioned in the news in the context of the affairs of

(a) African Union

(b) Brazil

(d) China