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China–Pakistan Economic Corridor : News & Discussions

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

  1. layman

    layman Aurignacian STAR MEMBER

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    CPEC will become buffer for Pak for their terror ventures.
    Chinese will look into the prospect of viability and problems. China knows that they will have headaches with Pak outfits but the gains out weighs the headache so they will turn blind eye and keep blocking Indian initiative in international levels.

    Once article 370 is abolished then Kashmir can be a hot bed for investments and developments. It will give people jobs and raise their living standards.
     
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  2. InfoWarrior

    InfoWarrior Lieutenant FULL MEMBER

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    CPEC is useless for India. China is frustrated with India not joining One road one belt scheme.

    "Jackie Chan’s new movie Kung Fu Yoga features an Indian character praising President Xi Jinping’s Belt and Road Initiative (BRI), an ambitious China-led connectivity project that India has so far declined to join, with film critics calling it “brazen political propaganda”.
    http://www.hindustantimes.com/world...-propaganda/story-FRl027f80j3VSbBYWOeE3K.html
    https://silverscreen.in/hollywood/news/jackie-chans-kung-fu-yoga-pro-china-propaganda-say-critics/


     
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  3. IndiranChandiran

    IndiranChandiran Lieutenant FULL MEMBER

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    So , what we have here is tacit admission that the CPEC can't have legs without Indian participation .I read an article sometime back that something larger based on the CPEC was offered to India around 2013 .The offer was renewed when Modi took power only to be turned down once more .

    All those excess capacities in steel and cement in China will rust in a few years time if CPEC isn't active within the next few years .What it will do for the economy of Pakistan is something time will tell .But the prognosis is bleak .It's only when the profile start flowing out of Pakistan that the realisation of what it is to be a neo colony will dawn on them .Lets hope the struggle that will be initiated then will be inherently secular in nature without invoking religion in it .In our part of the world , unfortunately that's how progress is measured .Incrementally and for causes not worth the effort in the first place .
    @VCheng .
     
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  4. Ankit Kumar 001

    Ankit Kumar 001 Major Technical Analyst

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    India's only concern officially is that it passes through occupied Indian Territory .

    Get out of our Territory and do whatever you want with your CPEC. We won't bother a bit then.
     
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  5. Golden_Rule

    Golden_Rule Lieutenant FULL MEMBER

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    China should shed illegal occupation of Islands in North ASEAN sea (previously called SCS) after International Court of Justice rejects history garbage reasoning of china: Indian media
     
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  6. Golden_Rule

    Golden_Rule Lieutenant FULL MEMBER

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    Pakistan should give up illegal occupation of Occupied Kashmir after UK Parliament passes resolution on it
     
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  7. An Indian

    An Indian 2nd Lieutant FULL MEMBER

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    How do I upvote this other than liking it?
     
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  8. layman

    layman Aurignacian STAR MEMBER

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    CPEC an economic project, ‘no direct link’ with Kashmir issue: China tells India
    Published April 18, 2017
    SOURCE: PTI

    [​IMG]

    China on Tuesday sought to allay India’s concerns over the China-Pakistan Economic Corridor, saying it has “no direct link” with the Kashmir issue and New Delhi was welcome to participate in the ‘One Belt One Road’ project.

    Chinese foreign minister Wang Yi, at press conference on the One belt One Road (OBOR) summit to be held here from May 14-15, said, “Although (an) Indian leader will not be here but India will have a representative” at the OBOR summit.

    “We welcome (the) Indian representative, members of the Indian business community and financial community to take part in the discussions at the summit,” Wang said.

    28 presidents and prime ministers were expected to take part in the summit, he said.

    “OBOR is for common development of all participants. So we welcome India to take active part in building the OBOR,” he said.

    Wang asserted that the purpose of the $46 billion China-Pakistan Economic Corridor was economic.

    “It is for the purpose of serving economic cooperation and development,” he said.

    “It has no direct link with political and boundary dispute. Certain sections of the CPEC have raised concern on the Indian side,” Wang said.

    These disputes are not the direct result of the economic corridor and economic activities. China has been providing support to Pakistan in these areas for many years, Wang said.

    “As for the dispute of Kashmir, China’s position remained unchanged. Also, CPEC has no relationship with the dispute in certain regions. I want to reaffirm to the Indian friend if India wants to take part in the OBOR, there are many channels and ways,” the Chinese Foreign Minister said.

    China has taken note of India’s participation in the Bangladesh, China, India, Myanmar (BCIM) which is part of OBOR, he said.

    “We have taken note of India’s positive attitude on this,” Wang said.

    India has reservations over OBOR as the CPEC is part of it and passes through Pakistan-occupied Kashmir (PoK)
     
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  9. Hellfire

    Hellfire Devil's Advocate Staff Member MODERATOR

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    Local, global security firms in race along China's 'Silk Road'
    GLOBAL ENERGY NEWS | Mon Apr 24, 2017 | 7:32am EDT

    [​IMG]

    Trainees from Dewei Security attend a daily training session at a training camp, on the outskirts of Beijing, China March 2, 2017. REUTERS/Jason Lee

    By Brenda Goh, Michael Martina and Christian Shepherd | SHANGHAI/BEIJING


    Global security companies and their smaller Chinese rivals are jostling for business along Beijing's modern-day "Silk Road", the grandiose plan for land and sea routes connecting the world's second largest economy with the rest of Asia and beyond.

    Representing investments of hundreds of billions of dollars, the pet project of Chinese President Xi Jinping is seen boosting economic growth at home, and as positive for everything from steel prices to cement makers.

    Security firms also expect to tap the rush, offering to protect thousands of Chinese workers - and the pipelines, roads, railways and power plants they build - as they fan out across the world under the "One Belt, One Road" (OBOR) initiative.

    It won't be easy, however, with executives warning that state-owned enterprises running or planning projects from Africa to Vietnam sometimes prefer to deal with fellow Chinese, treat safety as an afterthought and try to keep costs to a minimum.

    "OBOR is a lifetime (of work) for us," said John Jiang, managing director of Chinese Overseas Security Group (COSG).

    The small consortium of security providers was set up early last year and operates in six countries: Pakistan, Turkey, Mozambique, Cambodia, Malaysia and Thailand.

    "In eight years' time, we want to run a business that can cover 50-60 countries, which fits with the One Belt One Road coverage," Jiang told Reuters.

    Chinese personnel are essentially barred under Chinese law, and that of many host nations they work in, from carrying or using weapons.

    Instead, COSG and its rivals usually work with and train local staff and focus on logistics and planning.

    In Pakistan, for example, where attacks by militants and separatist insurgents are considered a serious threat, COSG has a joint venture with a local security firm with links to Pakistan's navy.

    The Pakistani army also plans to provide 14-15,000 armed personnel dedicated to guarding Chinese projects, according to local media reports.

    The $57 billion China-Pakistan Economic Corridor, the largest single project under the OBOR banner, envisages roads, railways, pipelines and power lines that link China's western reaches with the Arabian Sea via Pakistan.


    CHINESE VERSUS INTERNATIONAL

    Major international security operators hope their scale and experience can convince China's price-conscious state-owned giants to pay for foreign expertise.

    Firms like Control Risks and G4S (GFS.L) offer staff with military backgrounds and decades of experience in risky regions around the world.

    G4S said it had seen an acceleration of interest in its services since OBOR began gaining traction.

    Michael Humphreys, a Shanghai-based partner at Control Risks, said around a third of the security consultancy's work in China was related to OBOR.

    Hong Kong-based logistics firm Frontier Services Group (0500.HK), co-founded by Erik Prince who created the U.S. military security services business Blackwater, announced in December it was shifting strategy to capitalize on OBOR.

    It plans to set up an office in the southwestern province of Yunnan, which adjoins Southeast Asia, and another base in Xinjiang in China's west, the starting point for the CPEC project crossing Pakistan.

    Smaller Chinese firms like COSG, Shanghai-based Weldon Security and Dewei Security, meanwhile, see their advantage over multinationals in state-owned enterprises' preference for hiring Chinese to handle sensitive projects.

    Only a handful of the estimated 5,800 Chinese security companies operate overseas, with the vast majority focusing on the domestic market.

    "For Chinese firms, especially with security work, they (state companies) want to speak with another Chinese person. We can also one hundred percent reflect their thinking when we work," said Dewei general manager Hao Gang.


    NO EASY SELL

    Security risks facing Chinese workers abroad are varied and often unpredictable.

    Yu Xuezhao, a former soldier working in Kenya for Dewei, is helping to train hundreds of local guards to protect Chinese contractors operating there, including oil giant Sinopec (600028.SS) and China Road and Bridge.

    Africa, where China invested long before OBOR was formally created, is considered a part of the initiative.


    "The most common incidents we encounter are thefts and strikes," 27-year-old Yu said, speaking from a training compound in the Kenyan capital Nairobi he has managed since 2015. "We train security guards to inspect cars and do ground patrols."

    Events can quickly escalate.

    In 2015, for example, an attack on a hotel in Mali killed three workers at a Chinese state firm, leading to calls by Beijing for beefed up security.

    Officials revealed then that 350 security incidents had occurred between 2010-2015 involving Chinese firms abroad.

    Such concerns do not easily translate into lucrative contracts, however.

    In some cases, security companies are called in to deal with an emergency rather than to coordinate a long-term strategy.

    "For a lot of companies, they come to us when they've (already) got a problem," said Humphreys of Control Risks.

    "They've started the project and they can't move it forward because they have a labor dispute or someone is throwing petrol bombs at their trucks."

    Hao and other Chinese security executives added that most state-owned enterprises were building their overseas security capabilities from a low base.

    "A lot of the larger state-owned enterprises have only just started to go out in the last few years. As such, overseas security work remains a blank space for those firms who had not gone out before," he said.Some Chinese experts said companies operating abroad were beginning to think more about the importance of safety.

    "This is something Chinese companies need to study more," said Lu Guiqing, general manager of private builder Zhongnan Group and former chief economist at China State Construction Engineering Corporation.

    "When you 'go out' safety is the most important. What's the point if you end up losing people?"



    (Additional reporting by Joseph Campbell in BEIJING and George Ng'ang'a in NAIROBI; Editing by Mike Collett-White)

    http://www.reuters.com/article/us-china-silkroad-security-analysis-idUSKBN17P10Y?il=0
     
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  10. Hellfire

    Hellfire Devil's Advocate Staff Member MODERATOR

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    Pakistan refuses ADB loan for railway as China becomes sole financier
    KHALEEQ KIANI


    ISLAMABAD: Pakistan has refused part financing from the Asian Development Bank (ADB) for the $8 billion Karachi-Peshawar Railway Line (ML-1) after China said it wanted to fund the project single-handedly.

    “China strongly argued that two-sourced financing would create problems and the project would suffer,” Minister for Planning and Development Ahsan Iqbal told a news conference on Thursday.

    The minister said he would not comment whether the Ministry of Railways has resisted the Chinese request for fears of monopoly, but said the entire financing would now come from China. The project was originally planned to be partly funded by the Manila-based ADB.

    Minister claims Planning Commission saved Rs560bn in four years
    He said the ADB would be accommodated in some other projects, such as those under the Central Asian Regional Economic Cooperation programme.

    Under the original plan, the ADB had to provide $3.5bn for the 1,700-kilometre-long line considered the backbone of the country’s logistics connecting two major ports with the rest of the country for transporting goods and passengers.

    The minister said the Chinese government therefore wanted that the project financing should be kept single-sourced. Pakistan and China are expected to sign a formal agreement in this regard next month.

    Mr Iqbal said the Planning Commission was making efforts to maximise allocation of funds for the next year’s development programme as it would be the final year of the current government. Therefore, the government would like to complete maximum number of projects during this period so as to support the growth momentum.

    He said it was also important to have larger development portfolio for the next year because it would trigger activity in the construction industry on which a number of other growth-oriented industries were dependent because of its potential to create jobs.

    “But we also have to balance ways and means,” he said, adding that the Planning Commission demanded Rs1 trillion for the of next year’s public sector development programme (PSDP), but the finance ministry has put a ceiling of Rs700bn.

    He said the finance minister and the prime minister would be requested to increase development allocations. The minister said the annual plan coordination committee would meet on May 17 to finalise next year’s development programme. And for a formal approval, the Planning Commission has proposed a meeting of the National Economic Council on May 21 or 22, depending on prime minister’s availability.

    Mr Iqbal said that since the current government came to power in 2013, the commission has saved Rs560bn by cutting project costs, transparency and scrutiny.

    This included $1.6bn saving in highway projects under the China-Pakistan Economic Corridor (CPEC) and Rs70bn in Jamshoro Coal Power Project. He said another $1bn saving has been secured from three liquefied natural gas–based power projects through competitive bidding by the executing agencies.

    He said the increased development portfolio has exposed the capacity of the various ministries and executing agencies to process a massive workload. Also, these agencies have formulated their project papers on the basis of feasibility studies prepared by international consultants.

    Mr Iqbal said the government has decided not to include any major project in the PSDP without completion of technical designs and financial closures. Previous governments included thousands of projects through “token allocations” without protecting major ongoing projects, he added.

    He said it was observed that 70pc of cost overruns were resulting because of inadequate financing in the PSDP. For example, the Bolan Medical College was started by former prime minister Zulfikar Ali Bhutto at an estimated cost of Rs7.5 million, but it was finally completed at a cost of Rs130m due to inadequate funding.

    This also inflates projects’ cost, delays implementation, and results in hundreds of white elephants like Neelum-Jhelum Hydropower Project, which was started at cost of Rs80bn but ended up costing more than Rs500bn because the project’s design kept changing as the implementation progressed.

    He said the government also revived some of the dead projects which had already consumed a lot of funds. Some of these included Quetta-Gwadar Highway (N-85) that was under suspension and was revived by the current government and made a connection under the western route of the CPEC.

    Lowari Tunnel, Islamabad International Airport, Katchhi Canal and Chitral Hydropower Project were some other important projects that became a subject of neglect, corruption and mismanagement, but they have been revived and would be completed during the current fiscal year, he said.

    Responding to a question, the minister said the current development portfolio involved 752 projects of Rs7.3tr.


    https://www.dawn.com/news/1329651/p...n-for-railway-as-china-becomes-sole-financier
     
  11. A_poster

    A_poster Captain FULL MEMBER

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    Why are these articles always lacking in information on rate of interest or rate of return?

    If ADB loan was cheaper than Chini loan, good for us as pakistani would be driven deeper into debt.
     
  12. Hellfire

    Hellfire Devil's Advocate Staff Member MODERATOR

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    They are lacking in details as most are trade secrets. But the point of posting the article was to further underscore the point of Pakistan unilaterally surrendering it's sovereignty to Chinese.
     
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  13. Hellfire

    Hellfire Devil's Advocate Staff Member MODERATOR

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    Looking at CPEC costs amid hype
    AFSHAN SUBOHIUPDATED ABOUT 6 HOURS AGO

    [​IMG]

    Enthused officials jetting in and out of CPEC-related meetings were too focused on details to care much for the bigger picture.

    Despite the frantic activity, Islamabad had yet to determine the expected cost and benefit, expressed in monetary terms, of the mega project.

    The relevant officers, however, claimed they have a fair idea of the CPEC’s impact on the job market. Based on the profile of workforce engaged on projects in progress, officials insist that over 80pc direct new jobs will be filled by locals in the initial years. However, if the multiplier effect over the next 10 years is taken into account the ratio would be no less than 1: 150: for each Chinese national inducted in a job, 150 Pakistanis will be employed.

    Many jet-lagged officials, shuttling between Beijing and Islamabad, were not perfectly comfortable with questions raised over transparency and the perception that Pakistan might end up giving more than getting from China in the $56bn mega project.

    Unable to provide a corresponding figure of expected gains against the projected cost of Rs150bn (one estimate) to the national exchequer, on account of tax and duty cuts to Chinese investors, a senior officer’s reaction was curt.

    For each Chinese national inducted in a job, 150 Pakistanis will be employed
    “Please stop this propaganda against the CPEC. Yes, we can’t invent numbers to please anyone. Currently we have more on our plate than we can chew. It will take sometime for the government team to re-adjust, shake officialdom out of its slumber to manage the increased work load, remove initial regulatory irritants and forge complementary relationships between varied layers and levels of ministries and departments involved in the project.”

    A key member of the government team said, “We intend to hire consultants for a proper cost benefit analysis based on data. The results will be shared with the media”.

    Last week the finance ministry, in a written reply to the National Assembly, detailed a series of exemptions, duty and tax breaks offered to Chinese investors. The ministry, however, did not quantify the cost.

    According to the ministry the facility of duty-free import of machinery, not locally available, has been granted to the Chinese for roads, mass transit power projects, Thar Coal field sector, and Gwadar port. The beneficiaries include the China State Construction Engineering Corporation Limited and the China Communication Construction Company.

    Besides income and dividends from port operations by the China Overseas Ports Holding Company, the China Overseas Ports Holding Company Pakistan, the Gwadar International Terminal Limited, the Gwadar Marine Services Limited and the Gwadar Free Zone Company Limited have been granted 23 years exemption from income tax.

    Similarly, income and interest earned by a foreign lender or a local bank by virtue of a financing agreement with the China Overseas Ports Holding Company Limited enjoy 23 years exemption from income tax.

    Similar exemptions have been given to the China Railway Corporation for the Orange Line and rail-based mass transit projects in the four provincial capitals.

    Dr Nadeem Javed, Chief Economist, Planning Commission, who recently returned from China, was confident that CPEC enjoys the support and backing of all political parties and segments of the establishment and that its popularity among the public will grow when gains start touching their lives.

    “Any criticism on the fringes will die down with time as power availability and connectivity improves and the job market expands with the broadening base of the economy”, he said.

    “Over the last three years the investment to GDP ratio has already shot up from 11.6pc to 12.5pc. The incremental net capital formation to GDP ratio is expected to increase at the rate of 1.5pc because of CPEC”, he said.

    There was both excitement and optimism in official circles at both federal and provincial levels. Many senior officers told Dawn that they have never, in their career, seen anything of this magnitude ever before. They were over-awed by the discipline, efficiency and the speed of work on CPEC projects.

    “Structures are emerging fast in the middle of nowhere. Please go visit Thar coal-mining, Gwadar or other sites of road projects in progress if you have doubts”, an officer commented.

    Corporate heads gave a guarded response. They tried to veil their fear of competition and hammered on issues such as transparency and sovereignty to oppose CPEC and demanded terms similar to those offered to the Chinese for future projects.

    The public appeared to be confused. They liked the idea of China being on Pakistan’s side historically but were found to be a little uncomfortable with the sudden influx of Chinese nationals in their midst.

    Pakistan-based Chinese officials dismissed such concerns and advised critics to shed bias. They were cautious and mailed some printed material and text of Chinese Ambassador’s speeches when asked to share their views.

    Ambassador Sun Weidong recently talked about expected tangible benefits from the CPEC for the people of China and Pakistan. He said, “… it will release huge development dividends benefitting all aspects of people’s livelihood in Pakistan”. He said CPEC is a corridor of prosperity, long lasting peace and inclusive development.


    https://www.dawn.com/news/1330234/looking-at-cpec-costs-amid-hype


    @OverLoad - your comments?

    @SrNair
     
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  14. SrNair

    SrNair Captain FULL MEMBER

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    In near future ,we only have to deal with China to control their province Pakistan.
    Am I Right? @OverLoad
     
  15. Hellfire

    Hellfire Devil's Advocate Staff Member MODERATOR

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    Overselling CPEC
    Editorial

    It is easy to understand that the volume of trade going through the ports of Pakistan will increase once the CPEC project gains momentum. But when the chief economist of the Planning Commission claims, as he did in a recent interview with Reuters, that 4pc of global trade will pass through this route, it can only be called a gross exaggeration.

    In fact, that figure is absurd since it implies that approximately $700bn could be flowing through the CPEC infrastructure, going by figures of global merchandise exports alone. Clearly, this is an overstatement of colossal proportions.

    The same individual then went on to claim that Pakistan could earn up to $8bn a year just from toll taxes and ‘rental fees’ from this traffic, helping it to easily tide over the repayment obligations from the various investments that have come in under CPEC, and which he claims will peak at $5bn per year.

    Once again, this sounds like an overly optimistic assessment. First of all, nobody is sure of what toll taxes and ‘rental fees’ he is talking about, and, secondly, whether his projections of the volume of traffic that would be generated by CPEC are realistic. Thirdly, who will be responsible for the cost of maintaining the road infrastructure in the years to come?

    For a long time now, there have been calls for more transparency in CPEC implementation, particularly regarding the financing arrangements. Thus far, the government has kept silent. If this is the best that the Planning Commission has to offer in response to repeated calls for more disclosure, then it suggests that the government itself does not know what it is getting involved in.

    Ahsan Iqbal, the deputy chairman of the Planning Commission, has repeatedly urged those who are asking questions about CPEC to avoid “negative propagation”, hinting that doing so plays into the hands of Pakistan’s enemies. But what else are we supposed to do when we are fed this sort of overoptimistic information, if not ask questions?

    https://www.dawn.com/news/1332543/overselling-cpec
     
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