The China-Pakistan Economic Corridor: Regional Effects and Recommendations for Sustainable Development and Trade

By Lakhani, Shirin | Denver Journal of International Law and Policy, Summer 2017 | Go to article overview

The China-Pakistan Economic Corridor: Regional Effects and Recommendations for Sustainable Development and Trade


Lakhani, Shirin, Denver Journal of International Law and Policy


In November 2003, China and Pakistan signed a Joint Declaration of Cooperation outlining their bilateral intent to promote trade and economic development. (1) In 2006, these nations composed and signed the Pakistan-China Free Trade Agreement (FTA) according to World Trade Organization (WTO) guidelines. (2) It was not until April 2015, when Chinese President Xi Jinping visited Pakistan, that the fruits of these agreements came to blossom. During this visit, China and Pakistan signed 51 agreements, memorandums of understanding (MoUs), and financing contracts, signaling the beginning of what is now known as the ChinaPakistan Economic Corridor (CPEC). (3)

CPEC is a $51 billion Chinese investment to develop Pakistan's infrastructure, transportation, and energy sectors. (4) Approximately 80% of the projects are energyrelated, with the remaining 20% dedicated to expanding existing infrastructure. (5) The Corridor will link Kashgar to Gwadar, providing China with a direct route to the Persian Gulf. CPEC will reduce almost 13,000 km and forty-five days to ship goods to just 2,000 km and ten days (See Figure 1). (6) In addition, secure energy sources, well-developed trade routes, and increased appeal to investors will bolster Pakistani textiles, agriculture, tourism, and manufacturing industries.

The potential for this investment to have a net positive impact on both China and Pakistan is great, however, CPEC is not without its problems. Security concerns, corruption, regional turmoil, and social and environmental impacts signal that there is ample work to be done. The most effective way to mitigate these risks is through an investment approach framed within the lens of long-term social, economic, and environmental sustainability. This Article aims to provide such a lens.

This Article is divided into two sections. The first section describes China's One Belt, One Road initiative and how CPEC fits into it. This section also includes an overview of the various CPEC projects and the bilateral agreements that govern the investment. The second section of this Article identifies key issues and roadblocks for CPEC. Recommendations on how to overcome these hurdles are divided into three categories: security, regional turmoil, and improved data analytics.

I. ONE BELT, ONE ROAD

Understanding the importance of CPEC requires a brief overview of China's larger One Belt, One Road (OBOR) initiative, perhaps best described as a modernday Silk Road. OBOR is a network of pipelines, railways, roads, and maritime trade routes spanning across Asia, Africa, and Europe (See Figure 2). (7) At the heart of OBOR is CPEC, with the entire system's crown jewel resting in Gwadar. The project is often seen as China's response to the Trans-Pacific Partnership (TPP) and the Transatlantic Trade and Investment Partnership (TTIP). (8) Neither of these global trade agreements includes China. The TPP is a partnership between the countries of North America and the Pacific Rim. (9) Twelve countries in total compose the agreement, notably including China's closest neighbors, but not the red giant itself. (10) The TTIP is a more western-focused agreement between the United States (US) and the European Union." The TTIP is still undergoing negotiation, but the TPP utterly failed on US President Donald Trump's first day in office. (12) In contrast, both OBOR and CPEC are well underway. Only time will tell, however, if CPEC and OBOR are China's attempts to surpass the US as the world's superpower. What is certain in the interim is the magnitude of economic benefit that awaits both Pakistan and China at the end of their joint Corridor.

A. Infrastructure, Transportation, and Energy

CPEC is expected to add over 700,000 jobs to the Pakistani labor market and increase the country's GDP by 2.5 percentage points from 2015 to 2030, all through a vast array of infrastructure, transportation, and energy projects. (13) By March 2018, 14 of the 21 energy projects are estimated to produce 10,400 megawatts (MW) of energy. …

The rest of this article is only available to active members of Questia

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited article

The China-Pakistan Economic Corridor: Regional Effects and Recommendations for Sustainable Development and Trade
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this article
  • Highlights & Notes
  • Citations
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.