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CPEC: “Iron Brothers,” Unequal Partners
[TheJamestownFoundation] Serious differences have come to the fore between China and Pakistan over the $60-billion China-Pakistan Economic Corridor (CPEC). At a Joint Working Group (JWG) meeting at Islamabad in November 2017, China announced its decision to suspend funding for at least three road projects in Pakistan, pending the release of “new guidelines” (Dawn, December 5, 2017). Only a few days earlier, Pakistan rejected Chinese funding for the $14-billion Diamer-Bhasha dam project and withdrew its request for inclusion of this project in CPEC. Pakistan objected to Chinese conditions, which included Chinese ownership of the project, operation and maintenance costs and securitization of the project by pledging another operational dam. According to Pakistan’s Water and Power Development Authority Chairman Muzammil Hussain, these requirements “were not doable” and against Pakistan’s interests (Express Tribune, November 15, 2017). China has denied these allegations (Global Times, December 12, 2017).
Suspended and rejected, you say? Dreadful. Simply dreadful.
China and Pakistan often hold up CPEC, a flagship venture of China’s Belt and Road Initiative (BRI), as a symbol of their co-operative partnership. Recent developments indicate serious differences between the two countries. Differences are inevitable between partners, even those that claim to be ‘iron brothers.’ However, the Sino-Pakistani relationship in CPEC is an unequal one. Not only will CPEC benefit China more than Pakistan, Beijing also calls the shots. It is even cracking the whip to ensure Islamabad concedes its demands on contentious issues. Islamabad’s vulnerability to Chinese pressure can be expected to increase especially after the US’ decision to suspend security aid amounting to around $1.3 billion annually to Pakistan in early January.

China and Pakistan are likely to continue to differ on issues related to CPEC. However, these are unlikely to derail the initiative, given their strong relationship, Pakistan’s deepening dependence on China and Beijing’s determination to make a success of BRI’s flagship venture. Other countries participating in BRI can draw lessons from Pakistan’s experience with CPEC. They can expect massive Chinese investment but not on generous terms. Chinese funding is not largesse and will extract a heavy price. As in Pakistan, they can expect sinicization of their economy, population and culture. Countries weighing the costs of Chinese investment should factor in Chinese interference in their political system.
Posted by: 3dc 2018-01-31
http://www.rantburg.com/poparticle.php?ID=506961