Why in news?

• China has refused to further expand cooperation in the areas of energy, water management, and climate change under the China-Pakistan Economic Corridor (CPEC).
• This refusal signals a strain in the ironclad friendship between the two all-weather allies.

What’s in today’s article?

• China-Pakistan Economic Corridor (CPEC) – About, different phases of CPEC, India & CPEC
• News Summary

China-Pakistan Economic Corridor (CPEC)

• 
• During an April 2015 visit to Islamabad, Chinese President Xi Jinping and then Pakistani PM Nawaz Sharif unveiled the $46 billion China-Pakistan Economic Corridor (CPEC).
  • CPEC quickly ballooned to $62 billion in pledges—one-fifth of Pakistan’s GDP—covering dozens of envisioned high-profile projects.
• The corridor links Xinjiang with Gwadar, and also passes through Pakistan-occupied Kashmir (PoK) where China is investing in a number of projects.
• Often described as a flagship project of the Belt and Road Initiative,the stated goal of CPEC is:
  • to transform Pakistan’s economy by modernizing its road, rail, air, and energy transportation systems; and
  • to connect the deep-sea Pakistani ports of Gwadar and Karachi to China’s Xinjiang province and beyond by overland routes.

Different phases of CPEC

• First Phase
  • Various agreements such as energy, infrastructure, port development and the railway line construction have been signed i.e., first phase focused on infrastructure creation.
• Second Phase
  • In February 2022, during the visit of Pakistani PM to China, industrial cooperation agreement was signed.
  • The second phase primarily revolves around Special Economic Zones development and industrialisation.

India & CPEC

• CPEC and the Sovereignty of India
  • This corridor is posing a threat to the sovereignty and the territorial integrity of India.
    • It passes through Gilgit-Baltistan area of Kashmir which is occupied by Pakistan.
    • The corridor enters into Gilgit-Baltistan through Khunjerab Pass.
    • This area is a part of the erstwhile princely state of Jammu and Kashmir and claimed by India.
• CPEC and Security threat to India
  • Ever since the construction of the corridor is started, the Chinese military presence in the area is also embarked.
  • In 2017, Chinese troops marched in the parade of Pakistan’s day in Islamabad.
    • This was the first time when Chinese military took part in any parade outside its country
  • Apart from the naval vessels deployed in Pakistan, eight submarines are also delivered to it by China.
  • China is planning to build its second a naval base in Gwadar port after Djibouti in 2017.
    • These activities of China are a serious security threat to India since China is encircling India into the Indian Ocean.

News Summary: China-Pakistan economic corridor expansion hits bumps

• Beijing has turned down several of Islamabad’s proposals related to direct investments in multiple sectors under the CPEC, including energy, tourism, water management and climate change.
• This was indicated by the signed minutes of the 11th Joint Cooperation Committee (JCC) of the CPEC.
  • The JCC is a strategic decision-making body of the CPEC.
• China's disagreement to further expand cooperation in such areas under the CPEC underscores the challenges that both the sides are facing in deepening the economic ties.