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37 lines
3.3 KiB
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37 lines
3.3 KiB
Markdown
# Importance of CPEC for China and Pakistan
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07-07-2025
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[[Pakistan Affairs]] [[international relations]]
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The China-Pakistan Economic Corridor (CPEC) is a flagship project under China's Belt and Road Initiative (BRI), aiming to enhance connectivity between Gwadar Port in Pakistan and Kashgar in China's Xinjiang province. It includes infrastructure development, energy projects, industrial zones, and more.
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Since China's BRI project launched 10 years ago the Chinese government has welcomed 149 countries and invested in 1100 projects throughout the globe. But out of these 1100 projects the CPEC investment is quite possibly the most important one for China's future success for three strategic reasons.
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## Importance for China
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### Energy Security
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China is the largest conusmer of energy in the form of oil and natural gas. For China to import this oil and gas, tankers would have to depart the Middle East, travel around the southern tip of India through the Strait of Malacca between Indonesia and Malaysia, and finally around Vietnam before landing in a Chinese Port. There are two problems with this route.
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- The extraordinary distance oil tankers must travel to deliver these resources to China (12,000 kilometers).
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- The possibility of a war or conflict between the Southeast Asian countries which could simply block the Strait of Malacca and hamper China's ability to access the energy it needs to fuel its economy
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![[Current Chinese trade route to the Middle East.png|600]]
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CPEC now allows China to bypass this route and get direct access to the Middle East via the Arabian Sea using Pakistan's Gwadar port.
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### Market Expansion
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CPEC also allows China to access new markets in Central Asia, South Asia, and the Middle East The project has helped boost China's trade and investment in these regions and reduced dependence on exports to the West.
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### Regional Stability
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China is using cpec as a tool to promote Regional stability and counter terrorism in Pakistan by investing over 62 billion dollars in the country. China hopes that CPEC will promote economic development and reduce poverty in Pakistan.
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## Importance for Pakistan
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The total invesement of CPEC-related projects is more than $60 billion
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### Diversification of exports
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Through CPEC Pakistan has started to diversify its exports and increase production of metals such as copper and iron. These metals are in high demand in China which is the world's largest consumer of metals the increase in Metal Sales to China has been a major benefit for Pakistan's economy it has helped generate new sources of revenue and diversify Pakistan's exports Beyond its traditional industry of textiles.
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### Job Creation
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Through CPEC, thousands of direct and indirect jobs have been created in construction, logistics, and service sectors. There is also potential for employment in Special Economic Zones (SEZs).
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### Infrastructure and Energy
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CPEC led to massive improvements in roads and highways (e.g., Karakoram Highway), rail networks, and Gwadar Port. It also led to over 5,000 MW of electricity being added to the national grid through coal, hydropower, and solar projects, which helped reduce Pakistan's chronic power shortages.
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## Related Ideas
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[[Pakistan and China relations]]
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## References
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[Why Pakistan is the SECRET to China Global Success](https://youtu.be/t6pA7Fpb0s4?si=ydzEp5uIGPC-EQZ3) |