CPEC Extended to Afghanistan, India Opposes Belt and Road Initiative

Strategic Insights -

India has long opposed China's flagship Belt and Road Initiative (BRI), a key part of which is the China-Pakistan Economic Corridor (CPEC), as a significant portion of it passes through Pakistan-occupied Kashmir (PoK). However, despite India's concerns, Afghanistan, China, and Pakistan have agreed to extend the CPEC to Afghan soil, as announced by Pakistan's deputy prime minister Ishaq Dar after a meeting in Beijing. The three countries reiterated their commitment to regional security and economic connectivity, with plans to enhance diplomatic engagement, strengthen communications, and boost trade and infrastructure development.

Key Takeaways:

  • Afghanistan, China, and Pakistan have agreed to extend the China-Pakistan Economic Corridor (CPEC) to Afghan soil, despite India's long-standing opposition.
  • The CPEC is a key part of China's Belt and Road Initiative (BRI), which India views as a threat to its sovereignty and territorial integrity.
  • Pakistan's deputy prime minister Ishaq Dar announced the agreement after a meeting with Chinese foreign minister Wang Yi and the Taliban's acting foreign minister Amir Khan Muttaqi in Beijing.
  • The three sides reaffirmed their commitment to trilateral cooperation, regional security, and economic connectivity, and agreed to deepen cooperation under the BRI.
  • India has expressed concern over China and Pakistan using CPEC to alter the status quo in the region and has stated that it is willing to discuss only the return of Pakistan-occupied Kashmir (PoK).
  • The Taliban's foreign minister Muttaqi assured Wang and Dar that Afghanistan's relations with China and Pakistan will be developed based on respect.
  • The three sides agreed to increase trade and facilitate transit, with China's foreign ministry announcing plans to create an upgraded version of the CPEC and promote cooperation in industry, energy, minerals, counter-terrorism, and security.

Statistics:

  • The CPEC is estimated to have a total length of 3,000 kilometers (1,864 miles) and a cost of $62 billion.
  • The CPEC is expected to connect China's Xinjiang region with Pakistan's Gwadar port on the Arabian Sea, and further extend to Afghanistan.
  • India's trade with Pakistan has been severely impacted due to the ongoing Kashmir conflict, with bilateral trade worth only $2.4 billion in 2020-21.
  • Pakistan has been facing significant economic difficulties due to the COVID-19 pandemic and stagnant economic growth, with a GDP growth rate of only 1.9% in 2020-21.

Sources:

  • Hindustan Times
  • Press Release: Government of Pakistan
  • China's Foreign Ministry Website
  • Taliban's Foreign Ministry Website