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China–Pakistan Economic Corridor : News & Discussions

Discussion in 'South Asia & SAARC' started by Agent_47, Nov 16, 2016.

  1. Bloom 17

    Bloom 17 2nd Lieutant FULL MEMBER

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    But china taking over Pakistan will turn out to be a bigger headache than it already is. They would build up Pakistan against India and get their dirty work done by them without directly confronting us. It's exactly what USA did in Afghanistan with the Russians only different century different political situation
     
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  2. X_Killer

    X_Killer Lieutenant FULL MEMBER

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    This is what I call it earlier, a modern Chinese " EAST INDIA COMPANY".
    Pak likes to be treated as slaves.
    Good going Pak.
    RIP Pakistan
     
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  3. Hellfire

    Hellfire Devil's Advocate Staff Member MODERATOR

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    That is where the present GoI has to act quickly. Otherwise, we will have China on three sides with fourth side contested (the Indian Ocean: seeing how we are trailing in number of platforms. At the end of the day, numbers will always trump technology in context of countries like India and China. An adversary may be having the most advanced tech, but the sheer numbers we both can put up of even basic tech, will defeat them. One only need remember the superior technological edge enjoyed by Germany against USSR in the initial stages).
     
  4. Levina

    Levina Colonel on stilettos Staff Member ADMINISTRATOR

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    Hi,
    Thanks for the tag. There was a thread running on the same article two days back. I remember replying to it. Could you merge it here? Can't find it now.
     
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  5. zebra7

    zebra7 Captain FULL MEMBER

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    To do that India have to present themself as the Chinese replacement for the global need as the manufacturing hub. That would required

    1. Huge Sum -- FDI
    2. Skilled Labour -- Skill India Policy
    3. Favorable Relaxation norms -- GST, Land acquisition bill
    4. Through diplomacy (US can do that by slowing/depriving the dollor transactions )
    5. Putting pressure in SCO region on Chinese.

    If we manage to do that, the internal pressure due to Chinese unemployment, and the loan based industry will crash down too quickly.
     
  6. Rain Man

    Rain Man 2nd Lieutant POLITICAL ANALYST

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    Only one country gains from OBOR, that is China. For China it is a lucrative infrastructure business, an avenue to utilize their excess labour and over capacity in infrastructure companies including cement, steel, etc. suffering from NPA, it is also a loan business to utilize their large cash reserves, and an effective handle to influence foreign governments after entrapping them in debt trap. All other countries gain little out of it.

    One more point to note here, all infrastructure projects may look like Chinese investments, but these are not...All the money is coming as loans that must be repaid with interest by the host countries. What Chinese are doing is pure real estate / infrastructure business of building and selling projects, as well as loan business...All in the garb of a trade route marketing package. And host countries are missing out on competitive bidding opportunities from other countries for their projects that they are fully paying for. I bought a flat build by a builder and financed by a bank, I am neither grateful to the builder nor to the bank for it, why should I be when that's their business and I am paying for it? But these countries seem to have taken a false bait for nothing.

    No country needs Chinese made roads for trading with a neighbouring country, and trade with far away countries will continue to happen through sea routes for its huge cost advantage over road transport. OBOR is a white elephant for the host countries, but good business for China.
     
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  7. X_Killer

    X_Killer Lieutenant FULL MEMBER

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    ‘Another East India Company’ :
    Amid all this hectic economic activity, Pakistan plays the role of little more than a provider of raw material, land and labour. Chinese companies will run the show entirely.
    Of course, such an unequal relationship will have consequences. Already, it envisages visa-free entry for Chinese nationals while Pakistanis will still have to get one if they want to fly to China.
    The scale of Chinese activity is causing consternation within Pakistan. In 2016, a Pakistani federal legislator characterised the economic corridor as “another East India Company”, referring to the British trading company which, in the 18th century, colonised what is now India, Pakistan and Bangladesh. Other commentators have expressed alarm at the implications of the nine Special Economic Zones the corridor plans for. Will these end up being Chinese enclaves within Pakistan? Will Chinese forces secure them?
    The Pakistani government is only muddying the matters by making little information public. For example, the federal government did not share full details of the corridor with the provincial governments of Sindh, Balochistan and Khyber Pakhtunwa, sparking fears that the project will result in further oppression of non-Punjabi Pakistanis.
    After Independence in 1947, one of the first foreign policy decisions of Pakistan was to align with the Western bloc in the Cold War. While this suited Pakistan’s elites in staving off democracy, its long-term effects were disastrous for the country, giving rise to Islamic militants who felt powerful enough to challenge the state itself. Pakistan is still so subservient to Western power that it allows unchecked American military activity within its borders – an infringement of sovereignty few other nations would tolerate. Now, even as Pakistan’s relationship with the United States cools, the economic corridor means the country is just exchanging one quasi-colonial master for another.

    Source: https://scroll.in/article/837920/an...one-road-make-pakistan-a-chinese-quasi-colony
     
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  8. Sathya

    Sathya Lieutenant FULL MEMBER

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    Pakistan can accommodate OBL in Attobabad ..
    Do you think , they think it's hard to handle China ?
     
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  9. lca-fan

    lca-fan Major SENIOR MEMBER

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    https://www.ft.com/content/05979e18-2fe4-11e7-9555-23ef563ecf9a
    China takes ‘project of the century’ to Pakistan
    by: Henny Sender and Kiran Stacey in Karachi

    The signs in the lobby of the Pearl Continental Hotel in Lahore could hardly be more gushing. “Long live Pak-China Friendship,” they read, advertising a conference to promote the China-Pakistan Economic Corridor. The banners add: “Our friendship is higher than the Himalayas and deeper than the deepest sea in the world, and sweeter than honey.” Sample the FT’s top stories for a week You select the topic, we deliver the news. Select topic Enter email addressInvalid email Sign up By signing up you confirm that you have read and agree to the terms and conditions, cookie policy and privacy policy. That high, deep and sweet friendship is also worth a lot of money. The CPEC scheme, which will link western China to the Arabian Sea through Pakistan, is a cornerstone of the ambitious “One Belt, One Road”, a 65-nation strong initiative that aims to create a modern Silk Road connecting the world’s second-largest economy with Central Asia, Europe and Africa. It is the pet project of Xi Jinping, China’s president, who described the infrastructure-driven scheme this week as “the project of the century” when he met heads of state to discuss progress. On the surface Pakistan is on schedule to be one of the largest beneficiaries of Mr Xi’s ambition and arguably no country has as much to gain. Growth in gross domestic product is running at close to 5 per cent a year but it is not enough to absorb the 2m to 3m people entering the job market annually. “Pakistan has not been part of the world for a long time,” says Khurram Dastgir Khan, the commerce minister. “We were in a dark bubble and we are only just emerging. There is a fear that China will sell us cheap goods because we can’t compete. [But] China is the only game in town.” Such concerns are an acknowledgment that Pakistan’s economy has struggled, not only when compared with neighbouring India but also against the likes of Bangladesh, which has built a large manufacturing base. Beijing is set to invest more than $55bn in its neighbour, building power plants, roads and railways to give its infrastructure a much-needed upgrade as it seeks to emerge from years of political instability. Estimates from the Pakistan Business Council suggest the projects could account for 20 per cent of the country’s GDP over the next five years and boost growth by about 3 percentage points. But Pakistan’s policymakers also hope the relationship — Beijing last month provided more than $1bn in loans to help Islamabad stave off a currency crisis — will insulate it from the possibility that China will use its investments as a way to grab resources, profits and political power from its smaller, poorer neighbour. CPEC in numbers The construction of a power plant in Pakistan's Thar Desert © Bloomberg $55bn To be invested by Beijing into Pakistan projects $35bn Of that total to be spent on 21 power plants to combat chronic energy shortages $16.5bn The size of Chinese exports to Pakistan in 2015, up from $9.3bn in 2012 China accounts for almost two-thirds of Pakistan’s $20bn-plus trade deficit, and increased exports to its neighbour by 77 per cent in the three years between 2012 and 2015 from $9.3bn to $16.5bn, which has made some sceptical of Beijing’s approach. “There is a scary downside to this project,” says one business leader in Karachi, Pakistan’s biggest city and its business centre. No one wants to speak openly against CPEC for fear of alienating governments on both sides of the border, which have committed significant political capital to making it happen. “There is a big neighbour sitting next door and for them we are just a province,” he adds. *** The leak of China’s original proposals for the CPEC agreement in the Pakistan newspaper Dawn this week heightened fears. The terms prioritise the industrial ambitions of the Xinjiang Production and Construction Corps, a quasi- military organisation vital to Beijing’s oil and security policies which also dominates the agricultural economy of the frontier region of Xinjiang. Comparing it with the trading organisation that paved the way for British rule in India, the head of a large investment company in Pakistan says: “We have to be careful if we don’t want this to turn into a repeat of the East India Company. If we squander it, it will.” China wants to complete four main tasks via CPEC: expand the Gwadar port on Pakistan’s south coast, which it financed, built and owns, build a fleet of power plants, construct road and rail links and set up special economic zones where companies can enjoy tax breaks and other business incentives. Chinese surveyors examine a road surface in Peshawar in 2016 © AFP In building infrastructure, Beijing is doing for Pakistan what Islamabad has been unable to do for itself, especially as far as power generation is concerned. Peak electricity demand in Pakistan is 6 gigawatts greater than it can generate — equivalent to about 12 medium-sized coal power plants. Blackouts in many parts of the country last for several hours a day. To meet this shortfall China is expected to spend more than $35bn — about two-thirds of the entire CPEC budget — building or helping to construct 21 power plants, which will be mainly fuelled by coal. The combined 16GW of capacity that they could provide would repair Pakistan’s supply gap twice over. The building work associated with CPEC has already boosted heavy industry in the country. Arif Habib, one of the country’s biggest business conglomerates, says it is trebling its cement production in anticipation of CPEC. “China will expand the [economic] pie,” says Ahsan Iqbal, Pakistan’s planning minister. “This project will create new [domestic] demand.” *** Another attraction for Pakistan is that China could provide security. In a country that has been plagued for years by terror attacks, Beijing will want to make sure its investments are protected. Last week, at least 10 local contractors working near Gwadar were killed by unidentified gunmen. A ship carrying containers is guarded at Gwadar port © AFP Exactly what form this security assistance will take is unclear. China is selling billions of dollars’ worth of defence equipment to Pakistan and has handed over two ships to the navy to help protect Gwadar port. Ministers have, however, denied reports that Chinese troops are also stationed in Pakistan. “There is a security dimension to CPEC,” says Mushtaq Khan, chief economist at Bank Alfalah and a former chief economic adviser to Pakistan’s central bank. “It is right for the Chinese to secure and pay for Gwadar. China can’t let CPEC fail.” For all the benefits — money, expertise and manpower — that China offers, many have expressed concern about the terms of the deals and whether they might undermine Pakistan’s industry and even sovereignty. Local and international bankers say the procurement and bidding procedures around CPEC greatly favour Beijing, with Chinese companies winning Chinese contracts to build and finance infrastructure in Pakistan, in deals often guaranteed by Islamabad. A 2015 billboard in Islamabad featuring Xi Jinping, China's president, his Pakistan counterpart Mamnoon Hussain (left) and Nawaz Sharif, the country’s prime minister © AFP “The risk is that down the line China will call the shots and that we will pay the price later,” says Syed Murad Ali Shah, the chief minister of Sindh, the province in which Karachi is located. “It is up to us.” The Chinese plan, revealed by Dawn newspaper to have been delivered in December 2015, has only added to those concerns. It talks about thousands of acres of agricultural land leased out to Chinese enterprises to develop seed varieties and irrigation technology. It would install a full system of monitoring and surveillance in cities from Peshawar to Karachi, with 24-hour video recordings on roads. It would build a national network of fibre-optic cables to boost internet access. Key to this is the XPCC. Under the plan the Han Chinese economic and paramilitary organisation is mandated to invest in Pakistan as a springboard for economic development around Kashgar, the heartland of 11m Turkic-speaking Muslims known as Uighurs. Ministers in Islamabad say the document contains proposals originally drawn up by Beijing, but will not say how far the draft agreements, which are still being negotiated, differ from it. Critics argue that Pakistan risks repeating the mistakes of the 2006 free-trade agreement with China which was settled on unfavourable terms for Islamabad. And opposition politicians have attacked the government for giving away too much to the Chinese. Asad Umar, a member of the opposition Pakistan Tehreek-e-Insaf party, says of the leaked Chinese proposals: “This is the kind of lack of seriousness which has resulted in Pakistan losing rather than gaining from all the free-trade agreements we have signed.” Across the border in India, which is so concerned about China’s ambitions in Pakistan that it boycotted Mr Xi’s multinational conference in Beijing, the criticism has been even more damning. Swarajya, an Indian rightwing magazine, said the leaked document showed China intended “to reduce Pakistan to a vassal state”. New Delhi is worried both about Chinese encroachment into parts of Kashmir operated by Pakistan, which India regards as its own territory, and about the potential for China to station navy forces at Gwadar. The New Trade Routes: Silk Road Corridor One Belt, One Road Road, rail and energy projects to help increase trade In an effort to reassure its neighbours, Nawaz Sharif, Pakistan’s prime minister, told the Beijing conference: “Let me make it very clear that CPEC is an economic undertaking open to all countries in the region. It has no geographical boundaries. It must not be politicised.” Given the scale of the initiative, and Beijing’s soft power play, it is unlikely that the arguments will recede. According to Pakistan’s Overseas Investors Chamber of Commerce and Industry, CPEC power projects will provide backers with an average of about 20 per cent return on equity. Ministers in Islamabad admit the returns might look high, but they point out that the guaranteed payments to power producers are lower than current prices, and that no one else was willing to finance the schemes. “We wanted power investments, but nobody came in,” says Mr Iqbal, the planning minister. “The Chinese spotted an opportunity.” *** Others question the opaque nature of some of the deals. Vaqar Ahmed, deputy executive director at the Sustainable Development Policy Institute think-tank in Islamabad, says he tried to get the details of the memorandums of understanding and progress reports on specific projects, but was blocked by the government from doing so. Some officials blame the opacity on provincial rivalry as local politicians spar to get more Chinese investment for their districts. But others attribute it to the fact that the Army is involved on both sides of the border although the extent of the military role remains unclear. Whatever the concerns in Pakistan that Islamabad is ceding too much power to China, many in the business and political communities argue that the benefits from the infrastructure projects are well worth it. “Pakistan requires money and money has no colour,” Kimihide Ando, head of Mitsubishi Corp in Pakistan, says. Others argue that, following the problems with the free-trade agreement, Pakistan’s ministers will be more savvy this time. “The Chinese have taken us for a ride [before] but we have let them,” says Ehsan Malik, chief executive of the Pakistan Business Council. “Given we have made huge mistakes before, hopefully we will learn this time.” Additional reporting by Lucy Hornby in Beijing Securing resources Xinjiang Production and Construction Corps, a unique relic of Maoist resettlement policies, is at the crux of Beijing’s plans to invest $55bn in agriculture, energy and infrastructure in Pakistan, according to plans leaked by the Dawn newspaper this week. XPCC, known in Chinese as the bingtuan, was set up after the Korean war to move demobilised Chinese soldiers to the Central Asian frontier, where they would “settle the wilderness” and control ethnically distinct borderlands. Soon after, the settlements morphed into gulags for opponents and sent-down youth during the cultural revolution in the 1960s. Dismantled after that tumultuous decade, XPCC was soon re-established as the fall of the Soviet Union and the large-scale exploitation of oil and gas reserves increased the energy and security importance of Xinjiang — literally, the “new frontier”. Almost 70 years after its founding, XPCC controls much of the autonomous region’s water resources. It operates vast cotton, tomato and fruit plantations, and controls about a dozen listed companies. XPCC has adopted modern irrigation techniques in order to allocate more water to Xinjiang’s big new coal mines, but still relies heavily on subsidies for its cotton output. Seeds, cotton, yarn and irrigation technology are among the industries it will oversee in Pakistan, according to the proposals. XPCC functions autonomously in Xinjiang, representing a population of about 2m people almost all of whom are Han Chinese. Its more recent expansion into the heartlands of the ethnic Uighurs in the south of the region has been accompanied by unrest among the local population. In 2013, XPCC leased vast tracts from privatised state farms in Ukraine, investing in irrigation to grow corn, sunflowers and pigs. Lucy Hornby
     
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  10. lca-fan

    lca-fan Major SENIOR MEMBER

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    Complete verdict of ICJ
     

    Attached Files:

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  11. Hellfire

    Hellfire Devil's Advocate Staff Member MODERATOR

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    Done.

    I also didn't know. Thanks for heads up.
     
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  12. lca-fan

    lca-fan Major SENIOR MEMBER

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    China evokes Panchsheel to address India's concerns over CPEC
    PTI | May 18, 2017, 08.23 PM IST
    HIGHLIGHTS
    1. In the article published in a newspaper in India, BJP general secretary Ram Madhav had described CPEC as India's Achilles' heel.
    2. India skipped the Belt and Road Forum (BRF) held here on May 14-15 due to its sovereignty concerns over the CPEC which passes through PoK.
    [​IMG]The first principle of Panchsheel enunciated by India and China in 1954 speaks of "mutual respect for each oth... CPECtraversing through Pakistan-occupied Kashmir, China on Thursday said it believes in the Panchsheel principles of "mutual respect for each other's territorial integrity and sovereignty".

    "We have expressed our position on the China Pakistan Economic Corridor (CPEC)," Foreign ministry spokesperson Hua Chunying told media here when asked whether China plans to rename the corridor as proposed by its envoy to New Delhi.

    She was also asked questions about a top BJP leader's article in a newspaper, describing CPEC as India's Achilles' heel.

    "I want to reiterate that we would like to follow the five principles (Panchsheel) of coexistence in developing friendly relations with other countries including our efforts in promoting regional," she said.

    The first principle of Panchsheel enunciated by India and China in 1954 speaks of "mutual respect for each other's territorial integrity and sovereignty".

    "I am sure you also noticed that during the Belt and Road Forum for International Cooperation, President Xi Jinping also mentioned that we follow the principle of peaceful coexistence to promote the friendly cooperation along the Belt and Road. So I think in this way the concerns from the Indian side should be addressed," she said.

    "As per the concern over the Kashmir region as we said before, it is an issue between India and Pakistan. B and R will not change China's position on the Kashmir issue. B and R is open and inclusive one," Hua said.

    Chinese ambassador to India Luo Zhaohui had offered to rename the CPEC during an address at a think-tank in New Delhi, insisting that it was an economic cooperation and connectivity enhancement project devoid of "sovereignty issues".

    However, China later removed the remarks of its envoy from the transcript of his speech posted on the embassy website, apparently after Pakistan sought a clarification on it.
    Chinese official in Beijing, however, suggested that it was perhaps Luo's personal initiative to address India's concerns.

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    In the article published in a newspaper in India, BJP general secretary Ram Madhav had described CPEC as India's Achilles' heel.
    "Adding insult to injury for India is the very name of the project, CPEC, although the region through which it passes does not belong either to Pakistan or to China," he said.

    India skipped the Belt and Road Forum (BRF) held here on May 14-15 due to its sovereignty concerns over the CPEC which passes through PoK.

    Top Comment
    Hindi chini bhai bhai. The old saying of nehruvian era is long dead. Back stabbing by chini bhai is a lesson well learnt by india.
    Surender Thakur

    http://timesofindia.indiatimes.com/...s-concerns-over-cpec/articleshow/58737114.cms

    I say China shove this PANCHSHEEL into your and that IDIOT Nehru's ASS.
     
  13. MilSpec

    MilSpec Mod Staff Member MODERATOR

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    Peaceful colonization of idiots. This is quite popcorn worthy read.
     
  14. A_poster

    A_poster Captain FULL MEMBER

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  15. Hellfire

    Hellfire Devil's Advocate Staff Member MODERATOR

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    I believe the Chinese Central Bank Chairman had expressed reservations over the availability of 'cheap funds' resulting in over leveraging and creating a potential catastrophe in the long term.

    On the other hand, the Sri Lankan experience shows that China can expand it's territory without firing a shot by getting lease terms and then leveraging that to extend control over the adjoining areas in name of 'setting up an industrial ecosystem' to sustain the poorly planned infrastructure projects.

    Of course, the 'service industry' of host nation will benefit (read all low end jobs can be sourced to cheap labour and a sustainable economic model be perpetuated as costs of production in homeland rise as massive percentage of low economic group in China has not only migrated to middle but is now springing for higher income group.)

    Damn, I admire the Chinese; the more I read them, the more I respect them.
     
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