Gravitas: CPEC in danger? China sets conditions on Pakistan for new BRI investments
Summary
TLDRChina's International Department Minister, Leo Xianchao, has emphasized the need for improved security in Pakistan during an event in Islamabad, stating that the business environment cannot thrive without it. This message comes amidst concerns over the security of Chinese investments and personnel in Pakistan, which are crucial for the China-Pakistan Economic Corridor (CPEC). Recent visits by Pakistan's Prime Minister to China have yielded less investment than expected, and there's a noticeable shift in how China prioritizes its relationship with Pakistan. The 2024 joint statement between the two countries highlights security concerns, particularly after attacks on Chinese nationals. China is now seeking assurances of a safe and stable business environment in Pakistan, hinting at a reevaluation of its investment strategy.
Takeaways
- 🇨🇳 China's Minister of the International Department, Leo Xianchao, emphasized the need for improved security in Pakistan to enhance the business environment and strengthen China-Pakistan Economic Corridor (CPEC) cooperation.
- 🔒 Security threats are identified as the primary concern affecting Chinese investments in Pakistan, suggesting that without security, the business environment cannot improve.
- 🤝 Despite being termed 'all-weather allies,' recent developments indicate a potential strain in China-Pakistan relations due to security issues and the business environment.
- 🏢 Pakistan's Prime Minister, Shehbaz Sharif, returned from a visit to China with fewer commitments and investments than anticipated, reflecting a lukewarm response from Beijing.
- 📉 There's a noticeable change in China's stance on Pakistan from 'highest priority' to just 'a priority' in its foreign policy, indicating a shift in China's strategic considerations.
- 🚧 The CPEC, once a flagship project, faces challenges in Pakistan, including political instability, security issues, and dissatisfaction among the local population.
- 🛑 The Gwadar Port, a significant CPEC project, has not met expectations, raising questions about the effectiveness and return on investment of other CPEC projects.
- 🔄 The 2024 joint statement between Pakistan and China highlighted the need for security, particularly mentioning the attack on Chinese engineers at the Dasu Dam project, showing China's growing concern for the safety of its citizens.
- 🛂 Pakistan has taken steps to address security concerns by sacking officials after attacks on Chinese nationals, but the effectiveness of these measures remains to be seen.
- 💼 China's future investments in Pakistan are expected to be more cautious, with a focus on security and stability, rather than special favors or unconditional support.
Q & A
What was the main message conveyed by China's minister of the international department during the event in Islamabad?
-China's minister of the international department emphasized that without security, the business environment cannot improve, and security threats are the main hazards disturbing China-Pakistan cooperation.
What is the primary factor shaking the confidence of Chinese investors in Pakistan?
-The primary factor shaking the confidence of Chinese investors in Pakistan is the security situation in the country.
What was the outcome of Pakistan Prime Minister Shabah Sharif's visit to China in terms of securing new investments?
-Pakistan Prime Minister Shabah Sharif's visit to China did not yield significant new investments, as Beijing showed a lukewarm response to Islamabad's hopes for another round of major investments.
How has the description of China-Pakistan relations evolved in the joint statements from 2018 to 2024?
-In 2018 and 2022, China described its ties with Pakistan as the 'highest priority' in its foreign policy. However, in 2023 and 2024, the description changed to 'just a priority,' indicating a shift in the level of importance given to the relationship.
What is the dilemma China is facing regarding its relationship with Pakistan?
-China is facing the dilemma of whether to stay committed to its investments and projects in Pakistan or to reconsider its involvement due to the security risks and political instability in the country.
What are the major concerns China has regarding its interests in Pakistan?
-China's major concerns in Pakistan include political stability, security, and the increasing attacks on Chinese nationals and projects within the country.
How has the China-Pakistan Economic Corridor (CPEC) performed in terms of meeting its objectives?
-The CPEC has faced several hurdles, and despite significant investments, there is little to show for it, with projects like the Gwadar Port underperforming compared to expectations.
What was the special mention in the 2024 joint statement between Pakistan and China regarding security?
-The 2024 joint statement had a special mention of the suicide attack on Chinese engineers working on the Dasu dam project, highlighting China's concerns about the security provisions for Chinese people in Pakistan.
What actions has Pakistan taken in response to security incidents involving Chinese nationals?
-After the 2024 Bisham attack, Pakistan sacked security officials and police officers in charge of security for the first time, indicating a response to the security incidents involving Chinese nationals.
What is China's stance on future investments in Pakistan considering the current challenges?
-China has assured some investments in Pakistan but with a strict business approach and no special favors, as Beijing no longer views Pakistan as a high priority for its foreign policy.
Outlines
🔍 China's Concerns Over Pakistan's Security Affecting Economic Cooperation
China's Minister of the International Department, Leo Xianchao, has emphasized the need for improved security in Pakistan during an event in Islamabad. He stated that without enhanced security, the business environment cannot improve, which is crucial for China-Pakistan cooperation. The primary concern for Chinese investors is the security situation in Pakistan, which is seen as a main hazard affecting cooperation. This comes after Pakistan's Prime Minister, Shabah Sharif, visited China seeking more infrastructure and energy deals but returned with limited success. The joint statement from the meeting only vaguely mentioned an upgraded economic cooperation deal, indicating a shift from previous years where China described its ties with Pakistan as its highest priority in foreign policy. The security threats to Chinese interests in Pakistan, including attacks on Chinese nationals and projects, are a significant factor contributing to China's lukewarm response to further investments.
🚧 The Impact of Security Issues on China-Pakistan Economic Corridor (CPEC)
The security situation in Pakistan is casting a shadow over the China-Pakistan Economic Corridor (CPEC), with increasing violence against Chinese nationals and projects. Despite the Pakistani government's dependency on China for financial stability, the CPEC has faced numerous hurdles, including the underperformance of major projects like the Gwadar Port. The 2024 joint statement between Pakistan and China highlighted the need for security, with a special mention of the suicide attack on Chinese engineers working on the Dasu dam project. This indicates China's growing concern about the safety of its people in Pakistan and its expectations for Pakistan to take stronger actions against perpetrators. The Chinese officials' call for a safe, stable, and predictable business environment in Pakistan, along with the assurance of Chinese personnel's safety, suggests that while China is willing to continue investing, it will be on strictly business terms without special favors, reflecting a change in how China views its relationship with Pakistan.
Mindmap
Keywords
💡China-Pakistan Economic Corridor (CPEC)
💡Security Threats
💡Business Environment
💡Confidence
💡Political Instability
💡Deteriorating Security Situation
💡Belt and Road Initiative (BRI)
💡Investment
💡Gwadar Port
💡Da Su Dam Attack
💡Economic Cooperation
Highlights
China's minister of the international department, Leo Xianchao, emphasizes the need for improved security to enhance the business environment in Pakistan.
Security threats are identified as the main hazard disturbing China-Pakistan Economic Corridor (CPEC) cooperation.
Chinese investors' confidence in Pakistan is shaken primarily due to security concerns.
Pakistan Prime Minister Shabah Sharif's visit to China aimed at securing more Chinese investments, but it was largely unsuccessful.
Pakistan's hopes for an upgraded CPEC agreement were met with a lukewarm response from China.
The 2023 and 2024 joint statements between China and Pakistan show a shift in language, with 'highest priority' being replaced with 'priority'.
China faces a dilemma of whether to stay invested in Pakistan or withdraw due to security concerns.
Political instability and deteriorating security in Pakistan are affecting the China-Pakistan relationship.
Attacks on Chinese nationals and projects in Pakistan are undermining the success of the CPEC.
Gwadar Port, a flagship project under CPEC, has not met expectations and is underperforming compared to other new ports.
The 2024 joint statement between Pakistan and China highlights the need for security, mentioning a suicide attack on Chinese engineers.
China is pressuring Pakistan to take stronger actions against militants and ensure the safety of Chinese personnel.
Pakistan has responded by sacking security officials after attacks on Chinese engineers, indicating a shift in approach.
China's investments in Pakistan are now strictly business, with no special favors, reflecting a change in their relationship.
The transcript suggests that China is reassessing its priorities and the risks associated with further investments in Pakistan.
Transcripts
is China getting tired of Pakistan today
a very important message has come from
China during an event in Islamabad
China's minister of the international
Department Leo xianchao said that
business environment cannot improve
without security hear it for yourself we
need to improve security and the
business
environment security threats are the
main hazards disturbing CAC cooperation
as people often say confidence is more
precious than gold in case of Pakistan
the primary factor shaking the
confidence of Chinese investors is the
security
situation without security the business
environment um cannot really uh
improveed which may in turn undermine
the development in the long
run now what do you think the Chinese
min is referring to what could possibly
be disturbing the cooperation between
the all weather allies let me tell you
it's the threat to Chinese interests in
Pakistan specifically cek to us it
sounds like China is sending a strong
message to Islamabad fix your house or
else allow me to explain how we reach
that
conclusion recently Pakistan prime
minister Shabah Sharif concluded a visit
to China his first visit since taking
off office in March accompanied by a 79
member strong delegation the Pakistan
prime minister met with Chinese
president Shi jingping in a bid to
secure more big ticket Chinese
infrastructure and energy
deals but it turned out to be a dam
squib Sharif was forced to return nearly
empty-handed as Beijing P cold water in
Islam abad's hopes for another round of
major Investments especially through a
re Ral of
cek before his trip Pakistani officials
claimed that an upgraded version of the
cek agreement would be formally launched
in Beijing in fact they even pushed
Pakistan's annual budget by 2 days to
wait for sharif's China visit to be
over Islamabad was hoping for a renewed
push for Investments it was hoping for a
new plan to repay the debt it owes
China alas islamabad's dream did not
materialize Reports say that the Chinese
response was lukewarm The Joint
statement revealed that Pakistan managed
to make some gains but here's the kicker
there was only a vague mention of an
upgraded economic cooperation deal now
this is big it's because this is a
departure from tradition for Pakistan
and China you see for Pakistan China is
the Cornerstone of its foreign policy
let's just look at the previous joint
statements as well in 2018 and
2022 The Joint statements describe ties
with Pakistan as China's highest
priority in its foreign
policy but in 2023 The Joint statement
China Pakistan relations for China are
described as just a priority in its
Foreign
Relations same in the 2024 joint
statement did you notice the difference
do you see what's changed the word
highest is missing Pakistan has gone
from being the highest priority to just
a
priority this raises some important
questions 10 years after choosing cek as
the flagship brri project is China
losing interest in
Pakistan is China now trying to
downgrade ties with Pakistan what is
behind this
change there are many reasons Chief
among them is the question of do we stay
or do we go that's the Dilemma that
China is facing as Chinese interests
fall victim to terrorism in Pakistan you
see even though Pakistan prime minister
was clear and strong in his commitment
to the China Pakistan economic Corridor
his trip was not just about telling
China that Pakistan is committed to cek
but it was also aimed at convincing
China that they can protect Chinese
interests in
Pakistan you see China has some major
concerns in Pakistan one stability in
Pakistan and Security in
Pakistan it's public knowledge that
political instability in Pakistan has
added to the country's economic
VES it is also public knowledge that
inside Pakistan the security situation
is deteriorating to put it
mildly Chinese citizens are increasingly
being targeted then there's Rebellion
against China's belt and Road initiative
in Pakistan
the backto back attacks on Chinese
Nationals and projects in Pakistan it's
taken the shine of China's Flagship
project despite Chinese narratives of
continued support for cek political
instability and security issues inside
Pakistan appear to be taking a toll on
ties between the two countries it's
pretty obvious Pakistan cannot do
without China Pakistani government is
dependent on China for its Financial
stability but even a decade after it was
started there's nothing to show for the
$64 billion spent on cek
projects now take the example of guad
port a major project under the cek is
the guad port they hoped the port would
connect the China Pakistan economic
Corridor to the global Shipping
Network investors thought guad would
become the next Dubai the China Pakistan
Investment corporation will tell you
that the port is successful but here's
the truth it's an empty Port site two
decades on guad performs worse than
other New Ports the cek has faced
several hurdles in Pakistan but the
biggest challenge it faces is the safety
of Chinese Nationals working in
Pakistan with violence against them
increasing in the last few years no
wonder then that the other big change
that was seen in the 2024 joint
statement was an emphasis on
security the 2024 joint statement
between Pakistan and China had a special
mention of the suicide attack on Chinese
Engineers working on the dasu dam
project what does this tell us it tells
us that China is concerned with
Pakistan's security provisions for
Chinese people inside Pakistan Chinese
officials want Pakistan not only to hunt
down perpetrators but also severely
punish them for their crimes
to Ally Chinese fears Pakistan for the
first time sacked security officials and
police officers in charge of security
after the 2024 bisham attack in which
five Chinese Engineers were killed
reports suggest that China has been
pressuring Islamabad to carry out
large-scale military operations against
militants but as is the case with the
puppet government a large- scale
military operation against terrorism is
facing
resistance when the two leaders met
earlier this month she reportedly shared
China's concerns with Sharif she said he
hopes Pakistan would continue to create
a safe stable and predictable business
environment and earnestly guarantee the
safety of Chinese Personnel projects and
institutions in
Pakistan but can Pakistan continue to
handle this
responsibility does Pakistan need a cek
2.0 given its current
challenges with Pakistan's dead crisis
hindering its growth is it wise to take
up new and costly projects China knows
this is a risky gamble still it has
assured some Investments but they will
be strictly business with no special
favors for Pakistan after all Beijing no
longer views Pakistan as high on
priority
for latest news download the Von app And
subscribe to our YouTube channel
Посмотреть больше похожих видео
Big Win for Baloch Protesters : Pakistan's Gwadar Airport is a nightmare for China | World Affairs
Shehbaz Sharif's China visit & how Chinese investments are bleeding Pakistan dry
India Refuses to Support BRI at SCO Summit. Here's Why | Vantage with Palki Sharma
India China Border Standoff: A Thaw Soon? | Vantage with Palki Sharma
Reasi terror attack: J&K Police makes first arrest | Why this sudden spike in terror attacks?
Mega Proyek China Di Israel ini Membuat Amerika Serikat Khawatir
5.0 / 5 (0 votes)