Musings from afar

Should India join the China-Pakistan Economic Corridor?

Advantages of joining Beijing’s multi-billion dollar One Belt One Road are quite apparent and the economic logic is compelling.

 |  Musings from afar  |  4-minute read |   31-03-2017
  • ---
    Total Shares

In a significant though controversial policy intervention, Jammu and Kashmir Chief Minister Mehbooba Mufti recently came out in support of the China-Pakistan Economic Corridor (CPEC), saying it’s time to “move beyond border skirmishes” to be partners in economic growth.

She said that “J&K could become a corridor of economic activity in the region and the country could take huge benefit of the economic activities going on across the Line of Control. Why can’t we be partners in economic growth and share the benefits of projects like the CPEC?”

Gateway

In the past too, Mufti had commented on this. She has suggested the need for building a corridor between South Asia and Central Asia with Jammu and Kashmir as its “nucleus”, on the lines of the CPEC, underlining that such a corridor between the two emerging economic hotspots would help forge a new regional cooperation, energy transformation, trade and transit.

Not to be left behind, even the separatist Chairman of Hurriyat Conference, Mirwaiz Umar Farooq, has been advising India to “not stay out of it.” He said that “there is also an opportunity for India to assess the economic advantages it can have by being part of it. Kashmir can in fact become a gateway for India to be part of the CPEC, provided there is a settlement of the dispute first. Stronger the CPEC becomes, more the need to resolve disputes in the region.”

cpecbd_033117082219.jpg CPEC violates Indian sovereignty, running as it does as through Pakistan-occupied Kashmir.

There has been a chorus of voices in recent months who have argued that India’s official position on CPEC is untenable and will end up isolating India from the China-led connectivity transformation across the globe.

India’s official position has been effectively articulated by foreign secretary S Jaishankar at the 2017 Raisina Dialogue when he said, "China is very sensitive about its sovereignty. The economic corridor passes through an illegal territory, an area that we call Pak-occupied Kashmir. You can imagine India's reaction at the fact that such a project has been initiated without consulting us," said Jaishankar, adding that India had not seen signs of China's understanding India's concerns about its sovereignty.

India is not planning to be a part of the Silk Road summit in May in China as CPEC violates Indian sovereignty, running as it does as through Pakistan-occupied Kashmir (PoK).

Policy

The advantages of joining China’s multi-billion dollar One Belt One Road (OBOR) initiative are quite apparent and the economic logic is very compelling. But it remains far from evident how India can join the project without challenging the very foundations of its foreign policy.

China’s objective in promoting the $46 billion CPEC, which links China’s Muslim-dominated Xinjiang province to the Gwadar deep sea port in Pakistan, is clear and the rationale behind Beijing’s desire to pump in huge sums into a highly volatile Pakistani territory is also understandable.

Beijing is not doing this from the wellness of its heart to promote regional economic cooperation. The challenges to the project are huge as underscored by its militarisation. Even as Pakistan has deployed more than 15,000 troops to protect the CPEC, and is raising a naval contingent for the protection of Gwadar, China will also be stationing part of its growing marine forces at Gwadar.

The first project as part of the CPEC will be the coal-fired power project in Hub region of Balochistan which will be built at a cost of $2 billion. Chinese state media has been urging India to be pragmatic about the CPEC and join the initiative. It has gone ahead and equated the status of the disputed region of PoK with Taiwan as a “sovereignty” issue and suggested that India join CPEC to gain economic benefits.

Pakistan for its part has accused India of trying to sabotage the CPEC.

Consequences

India cannot be as ambitious as China is today in carving a global web of economic and trade relations through connectivity projects. And so it will have to think more creatively if there are certain aspects of the OBOR initiative that it can join without jeopardising its sovereignty claims.

It’s a tall order but India has its own set of connectivity initiatives such as Myanmar’s Kaladan project, Chabahar port project with Iran, as well as the north south corridor with Russia which can be potentially leveraged.

However, India’s approach cannot be based primarily on the economic advantages that might accrue to India in the short term. The long term consequences of the OBOR project for India can be quite significant if it ends up allowing China to consolidate its presence in the Indian Ocean at the expense of India.

A careful reassessment is needed. A hurried appraisal to either support the Chinese initiative or junk it altogether is best avoided at this juncture.

(Courtesy of Mail Today.)

Also read: Why Pakistan's Gwadar port is a big draw for China

Writer

Harsh V Pant Harsh V Pant

The writer is Professor of International Relations at King's College London. His most recent book is India's Afghan Muddle (HarperCollins).

Like DailyO Facebook page to know what's trending.