Topic: China Pakistan Economic Corridor and its socioeconomic implications for the region and the world

A. Introduction

CPEC is 3200 km long road network that connect China’s western hinterland with deap sea port at Gawadar. The project provides China with an opportunity to export its surplus production and also export its ‘Chinese values’. To Pakistan, it provides the much needed economic respite.

B. Socio economic implications for Pakistan
a. $62 billion investment unprecedented in Pakistan’s history
b. Energy crisis in Pakistan and $35 billion investment in energy sector
c. CPEC: countering unemployment and youth bulge
d. Historic opportunity to mainstream Balochistan and FATA
c. GDP growth and FDI

C. Socioeconomic implications for China
a. China is facing three major problems
i. Continued underdevelopment and rising intolerance in western China
ii. Excess industrial capacity
iii. Surplus of production
b. Migration issue in China and CPEC
c. China wants to export its ‘Chinese values’
d. China as a future soft power house
e. Deepening cultural ties between China and Pakistan

D. Implications for the region
a. India has been the fiercest critic of CPEC
b. Reasons why India opposes CPEC are economic
i. Stronger economic Pakistan will be more assertive on Kashmir
ii. It will spend more on military
iii. It will be less inclined to cooperate with India
c. India’s dream of regional dominance will see a setback
d. Regional countries more willing to cooperate with China than India
e. Pakistan will be strong in SAARC
f. Chabahar port will be facing a fierce competition
g. Gawadar deep sea port and Chinese presence will threaten India’s interests
h. China will get much needed respite from Strait of Mallaca

E. Implications for the World
a. China’s rise and growing regional influence makes US apprehensive
b. China’s presence at Gawadar and Strait of Hormuz, main US supply line
c. China integration with Europe through BRI and CPEC

F. Conclusion