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Old Sunday, January 01, 2017
Sulehrix's Avatar
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Default Why China Wants CPEC

There is a lot of discussion on why China is investing so much in Pakistan. Here are my two cents. Will be glad if anyone can add more.

China wants the Corridor due to the most obvious reason of cutting down transport distance and time along with having an alternative route in case there is blockage in the Strait of Malacca.

However, such a corridor cannot exist in Pakistan if there are fundamental problems like security etc. Cost of production is increasing in China, its allegedly importing illegal workers from Vietnam, so it needs a secondary option, a country who has lower wage rates and where there is no shortage of unskilled labour (with opportunity to train labour for industries requiring semi-skilled workforce).

Now you can connect the dots. You might have seen establishment of new training centers for vocational training. That's funded by China, for securing its own future. We are just close enough to be getting the spill-over or left-over impact of China's growth.

Construction of infrastructure and power plants is also in line with their OBOR policy as well as enabling our workforce to be used in low value-addition stages such as manual labour and packing etc. in its product supply-chain.

Moreover, you are also missing the point that this port will enable China bolster its Naval fleet and be recognized as a player in the Indian Ocean and hence protect its strategic and economic interests.

The corridor will also enable China to be connected to Iran, where it has already invested heavily in several sectors.

So, CPEC fits into Chinese strategy like a piece of a jigsaw puzzle. We should not be over-awed by Chinese investment, instead, we should ensure that we are watching our interests and enter into contracts which serve our short and long term interests.
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