China
Relaunch of China–Pakistan Economic Corridor Highlights Interdependence Between Nations
Phase II of the China-Pakistan Economic Corridor faces challenges, yet China remains committed. Completion could boost Pakistan’s industrialisation amidst political turmoil, while Beijing sees value in Pakistan’s strategic position amid US-China rivalry.
China’s Commitment Amidst Challenges
Despite ongoing challenges in Phase II of the China–Pakistan Economic Corridor (CPEC), China remains committed to completing the project. For Pakistan, this phase represents a crucial opportunity for industrial and infrastructural advancement during a time of political and economic turmoil. China is willing to bear the associated risks due to Pakistan’s strategic location in the context of heightened US–China competition, highlighting the interconnectedness of their partnership.
Persistent Issues and Renewed Interest
CPEC’s Phase II has encountered various obstacles, including attacks on Chinese workers, slow loan repayments, and a general lack of urgency from Pakistani partners. However, during Chinese Foreign Minister Wang Yi’s visit to Pakistan in May 2025, signs emerged of China’s renewed interest in expediting the project. This phase aims to develop industrial parks, dependent on sufficient energy supplies from Phase I to stimulate job creation and economic stability in Pakistan.
Future Plans and Ambivalence
After a prolonged pause, both countries announced plans for an ‘upgraded version’ of CPEC, with renewed focus on agriculture, industry, and mining. While essential infrastructure projects like Gwadar Port and the Karakoram Highway are back on the agenda, previous plans have often stagnated. A 23-page Action Plan unveiled during Prime Minister Shahbaz Sharif’s Beijing visit laid out ambitious goals but lacked concrete timelines or commitments, leaving room for skepticism about actual progress.
Source : China–Pakistan Economic Corridor relaunch exposes China–Pakistan interdependence
