CPEC at 10: Milestones, Challenges and Geopolitical Implications.

Byline: Haleema Sadia

July marked a significant milestone as the 10th anniversary of the China-Pakistan Economic Corridor (CPEC) was commemorated, a pivotal element of China's ambitious Belt and Road Initiative. The signing of the CPEC agreement, coinciding with China's four-decade-long economic reforms and opening up to the world, represents a significant breakthrough in the economic cooperation between China and Pakistan and reflects China's broader global engagement strategy. With the primary objective of establishing a modern-day "New Silk Road," CPEC has successfully laid the foundation for a secure and efficient trade route that connects China's Xinjiang region to Pakistan's Gwadar port. This transformative initiative, driven by mutual economic benefits, has facilitated greater regional integration between the two countries.

CPEC's Role in Regional Connectivity and Energy Security for China and Pakistan Over the past ten years, CPEC has played a significant role in strengthening China and Pakistan's regional and global standing by enhancing regional connectivity through developing new trade routes, promoting development projects, and setting up Special Economic Zones.

CPEC has provided China with a direct maritime route to the Arabian Sea and the Indian Ocean, which grants it advantageous access to energy choke points in the Strait of Hormuz and the Persian Gulf through Gwadar and consolidates trade connectivity with the Middle East, Africa, and Europe, complementing its BRI initiative. China imports 70-80% of its oil from the Middle East and Africa, mainly through the Malacca Strait, which carries risks of over-reliance on a single channel. The Malacca Strait, a narrow passage between Indonesia and Malaysia, is most vulnerable to disruption and blockade by the enemy to choke off critical supplies to the Chinese economy, which would pose a strategic dilemma for China's energy security.

Whereas CPEC provides an alternative overland energy corridor for China, connecting Pakistan between China and the Middle East. At just 3,000 km, it is much shorter than the 12,000 km sea route via Malacca. By diversifying China's import channels, CPEC reduces dependence on the Malacca route, enhancing China's energy security. The corridor provides a strategic advantage by circumventing the Malacca choke point and bolstering China's capability to ensure stable energy supplies. CPEC also provides China access to the two most strategic locations in the Indo-Pacific region, the Indian Ocean and the South China Sea - the critical juncture for the QUAD alliance.

On the other hand, CPEC also contributes to Pakistan's energy needs by exploring, extracting, and...