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CPSEC: The Saudi addition to CPEC

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CPEC has been a cornerstone of Pakistan’s long-term macroeconomic policy, and no matter who has been in power, the resolve to continue it further has been steadfast. Pakistan has realized its geopolitical advantage and has focused on constructing trade, energy and transportation corridors throughout its length. China and Pakistan in 2015, had agreed on partnering for the development of an economic corridor which would connect China’s western front with that of the Indus Belt and eventually with the Arabian Sea. The plan saw $ 62 Billion being committed to the execution of the project, building roads, rails, and power projects all along the length of Pakistan.   Contrary to popular belief, the economic corridor actually benefits both countries. China needs alternate routes for uninterrupted trade and energy supply, while Pakistan direly needed infrastructure and power sector development.

Saudi Involvement

At the recent Investment Conference titled “Davos in the Desert”, Pakistan’s newly elected Prime Minister had pitched the investment opportunities in Pakistan. Saudi Arabia now wants to be a partner in the CPEC project. The investment revolves around the establishment of an “Oil City” in Gawadar. Adviser to the Pakistani Prime Minister had said Saudi that the investment in the huge Oil City project in Gwadar would be $22 billion.

Recently after the twitter spat between the US and Saudi Arabia, the relations have been strained between the two long-term allies. Saudi Arabia, a longstanding US ally in the region is looking to diversify its relations with other nations to reduce its American dependence. This is why Saudi Arabia wants to partner into the CPEC project.

What benefits does Saudi Arabia have with the joining in the project? Saudi Arabia is still the largest supplier of crude oil. It has been looking to secure its oil exports and look for stable markets for its oil export. China is the largest importer of crude oil in the world, accounting for 18.6% of the total global import. The US, on the other hand, is the second largest importer of crude oil, though it also has a huge domestic production which accounts for 40% of its total domestic use. China clearly has the demand and the will to import Saudi oil and for this reason, Saudi Arabia wants to establish refineries, storages, and oil processing units at Gawadar to allow for uninterrupted oil flow into western China. The flow of this oil would be through Pakistan which has longstanding friendly bilateral relations with both Saudi Arabia and China. These relations are also independent of each other, hence the relations would not be affected by overlapping national interests. China also wants to have an uninterrupted energy supply to its mainland via alternate routes, which could not be affected by the geopolitics of the seas.

Saudi Arabia also looks at Pakistan as its long-term partner and a potential market for its exports.  Pakistan has a 202 million population, 70% of which is under 35 years of age. In case, peace returns to the region, Pakistan could show exponential growth and bulge of a new vibrant and energy-hungry middle class. In addition to that, Saudi Arabia wants to have stakes in Pakistan’s economy and what better way of doing all this than to invest in an Oil City, which also happens to be geographically nearby Saudi territory. Pakistan has also been very eager for investment diversification in its economy to avoid being labeled a China-only economy. Showing to the world that’s its doors are open for any country willing to invest into Pakistan.

Convergence of interests

This incredible convergence of interests paves the way for the China Pakistan Saudi Economic Corridor to be a very constructive regional partnership.  This partnership would see three regional powers engaging in positive regional trade and connectivity projects which would eventually increase trade, trust, and dependence on each other. Pakistan and China, both have repeatedly stated that CPEC is open for all to join in and collectively reap the benefits of trade and regional connectivity.

The Author is a keen China Observer and a Ph.D. Scholar at Tianjin University. His research interests include China Pakistan Economic Corridor, the Belt and Road Initiative and Shanghai Cooperation Organization.

South Asia

2018 was the deadliest year in the history of Kashmir

Irfan Khan

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Kashmir is natural paradise and gorgeous valley located between Pakistan, India, Afghanistan, China and with a small strip of 27 miles with Tajikistan and Kyrgyzstan. But it is still a disputed region since partition of United India into India and Pakistan (also Bangladesh in 1971) in 1947.

The history of the freedom of Kashmir dates to 1931 when the people, both Hindus and Muslims, initiated a freedom movement against the then Maharaja (ruler) to have their own indigenous rule. The resentment of the people led to the ‘Quit Kashmir’ campaign against the Maharaja in 1946. Faced with the insurgency of his people, the Maharaja fled the capital, Srinagar, on October 25, 1947 and arranged that India send its army to help him crush the rebellion. India, coveting the territory, set the condition that Maharaja must sign an ‘Instrument of Accession’ to India. At the same time, India had to attach another condition that accession was made subject to ‘reference to the people.’ On India’s showing, therefore, the accession has a provisional character.

Then India brought the dispute to the United Nations where the Security Council discussed the question exhaustively from January to April 1948. Then both India and Pakistan and approved by the international community that the dispute over the status of Jammu and Kashmir can be settled only in accordance with the will of the people which can be ascertained through the democratic method of a free and impartial Kashmiri citizens vote.

The people of Kashmir, despite of being injured since long could not lost their hope. They believe in United Nation(UN), assuming it will advocate choice of freedom for them. During the July-August 2018, people from entire Srinagar and other towns, were protesting government of India’s violation of Article 35-A of Indian’s constitution. 35-A, assure special rights to the state of Jammu and Kashmir.

Whenever, there is peaceful demonstration from them, then they must suffer basic human rights violation, fear and state of starvation as response of Indian government. In 2018, 111 civilians are killed which is double to the previous year recorded 40 killing by the Indian forces. India has some 500,000 troops deployed in Kashmir. Popular unrest has been rising since 2016 when a charismatic young Kashmiri leader, Burhan Wani, was shot dead by Indian forces.

Pakistan always has been bolstering the way of peaceful talk with India over the issue. Last year, in October, Prime Minister Imran Khan, repeated Pakistan’s stance that the solution to the region’s dispute laid in dialogue. He said,”It is time India realised that it must move to resolve the Kashmir dispute through dialogue in accordance with the UN SC resolutions and the wishes of the Kashmiri people”.

Kashmiri leader Mirwaiz Umar Farooq, in response to PM Khan said we welcomed “Pakistan’s concern” but called for Pakistan to “do much more” to “put an end to the appalling grind of repression and human rights abuse that Kashmiris are suffering at the hands of Indian state.

Happily, UN has issued human right report on Kashmir in June 2018. The report of 49 pages strongly emphasis on human right violation and abuses and delivering justice for all Kashmiris. UN High Commissioner for Human Rights Zeid Ra’ad Al Hussein remarked “The political dimensions of the dispute between India and Pakistan have long been centre-stage, but this is not a conflict frozen in time. It is a conflict that has robbed millions of their basic human rights and continues to this day to inflict untold suffering. Therefore, any resolution of the political situation in Kashmir must entail a commitment to end the cycles of violence and ensure accountability for past and current violations and abuses by all parties and provide redress for victims”.

2018 was the deadliest year in the history of Kashmir. Hope so, Pakistan and India sandwiched by UN would resolve the issue based on Kashmir people’s choice of freedom so that human violation could be ceased.

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South Asia

2018: A good year for China-India relations

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Authors: Arun Upadhyaya and Carter Chapwanya*

The year 2018 ended on a high note for China’s peripheral diplomacy as Sino-India relations are in good shape owing to several positive steps taken by the two governments.

Relations between the two countries had turned sour in the fall of 2017 due to border disputes in the South-Western part of mainland China. Several pundits had predicted that the standoff would escalate into a major military confrontation but the events that ensued proved them wrong.

Diplomatic efforts from both sides mitigated the conflict and culminated into an informal summit between President Xi and Prime Minister Modi which was held in Wuhan in April 2018. This summit had serendipitous effects that would reverberate to this day as they have come to be known as the ectoplasm essence of the ‘Wuhan Spirit’.

The two leaders agreed to focus on areas of cooperation and respective national development which would consequently enable them to set aside their differences.

They agreed to consolidate their resources in efforts of hastening regional development. The ‘China-India Plus’ cooperation model for regional development was devised and this would serve as a trust-building mechanism between two great economies that would then work together on several projects in and around the South-Asian region.

By October, the fruits of this arrangement could already be seen as the first phase of the India-China joint training for Afghan diplomats commenced in Delhi from October 15 to 26. The second phase was then held a month later in Beijing from November 18 to December 2.

India’s External affairs minister, Sushma Swaraj remarked that the joint training sessions were building blocks for a long-term trilateral partnership for the befit of Afghanistan. This came as a surprise to many as India had shown great reluctance towards trilateral interactions involving China in Nepal.

A similar sentiment had just two days earlier been expressed on the official account of the Indian Embassy in Afghanistan, which also described the training as ‘Trilateral Cooperation between India China and Afghanistan’. This was a major indication of the shift in India’s traditional position and created optimism for greater cooperation between the two countries.

The Doklam military standoff, in the border dispute, may just have laid the seeds for greater friendship between China and India as the efforts to resolve it resulted in many positive outcomes for the future of Sino-Indian bilateral ties.

In the meetings in Wuhan, Xi and Modi also saw the need to pursue more people-to-people mechanisms of high-level cooperation. At the end of December 2018, Chinese foreign minister; Wang Yi visited India to attend the first meeting of the China-India high-level people-to-people and cultural exchanges mechanism building on the agreement reached by the two countries in Wuhan.

At the meetings in Delhi, delegates from both countries reviewed the progress of the people-to-people initiative and agreed that the cultural exchange has been conducive for consolidating the social base of China-India friendships. They identified areas for further cooperation while strengthening existing programs such as the China India think tanks; youth exchange programs, education cooperation among others.

On the regional and the multilateral level, a consensus was reached to use organisations like East Asia Cooperation, BRICS, Ancient Civilisations forum and the Shanghai Cooperation Organisation in consolidated efforts of peace-building and development.

In addition, Sino-India economic ties improved significantly in 2018. China has now begun importing Agricultural and Pharmaceutical products from India and this has been quite a welcome development for India.

Another milestone achieved in 2018 as the two countries deepened their defence and security cooperation. Beijing and Delhi held the first high-level meeting on bilateral security cooperation with an objective of strengthening cooperation on counter-terrorism, drug control among others. Their two militaries also resumed military drills that had stalled in the aftermath of Doklam standoff. India also agreed to the renaming of Taipei and this was a very significant step in strengthening the bilateral relations.

Increased cooperation between China and India could be instrumental in fostering sustainable peace, stability and development in the region. Pundits now believe, increased strategic cooperation between the two Asian giants could also have interesting implications to the global balance of power.

The future looks bright for Sino-India relations as just in 2018; the two sides maintained strategic communication. The two leaders met several times for high-level meetings in an effort to build bridges on areas of dispute as well as to strengthen the mutual desire for commensurate growth and development. 2019 may even bring greater areas of convergence for Sino-India relations especially if the US protectionist agenda persists, and with the ‘spirit of Wuhan’ working well for the two countries it is doubtful whether there would be any major trepidation.

*Carter Chapwanya is a published author and currently a Political Science PhD candidate at Shandong University

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21st Century Great Power Scramble Rush to Indian Ocean

Ramla Khan

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The Indian Ocean Region (IOR),dubbed as the 21stcentury’s “pecuniary cauldron” has emerged to be the modern competitive zone for existing and emerging powers of the world. The global power patterns at present remain in the transformational stage. However, in the past the international community has seen spectrum of power shifting from bipolar to unipolar whereas at the present junction, the growing expectations are of a clash within materializing multipolarity. John Mearsheimer, renowned international relations scholar, deduces that in a multipolar world order there are greater likelihood for war, particularly when states in order to address “security dilemma” practice the offensive realpolitik approach.

Great power states are espying their futures in the high waters of the Indian Ocean that is third largest on the world map and is heavily packed with eccentric sea resources. India and China considering their geographical proximity remain the elitist contenders that are striving hard for the steering. The United States (US) remains a key player in the emerging scenario with the “Pivot towards Asia” gaining an exponential credibility under the Trump administration that looks towards the region under the broadly coined term “Indo-Pacific”. It also signifies the strategic interest of the Americans, underlying that US is not ready to compromise on both ends. The policy of bandwagon with potential allies allows the “sole superpower” in wake of its declining power and influence to remain “hand-dipped” and relevant in the waters of the Indian Ocean. The years after British departure, US strengthened its footsteps in IOR by inheriting the Diego Garcia island base. At present, it continues to back India to contain China’s “peaceful rise”. The activities are supported by the Fifth Fleet which continues to rest beside the major choke points. The fleet has substantial presence near the Red Sea located at the closure of Bad-el-Mandab Strait. The naval convoys have long provided US the operational easiness since the Second World War against its potential foes. The fleet has since then with an intermission in its presence has extended its diameter to the Indian Ocean in the post-Cold war period.

The region holds overriding significance for China, whose staunch presence provides it with the prospect to pursue its economic and political interests in the South China Sea. It relies on ‘The Sea Lines of Communication (SLOC)’for the essential energy consumption. The approximate of 80 percent of its oil requirement is fulfilled through these lanes from Middle East. In this ongoing setting, any blockade of Malacca and Hormuz Strait is almost exorbitant to the Chinese economy that is aiming to surpass the US economy in times to come. The oil-rich Middle East transports its petro-minerals via the Indian Ocean routes to the East and West. Any disruption in these communication lines can lead to economic collapses of major power relations, analogous to what was witnessed during the First and Second World War. Indian Ocean stores immense amount of resources in the form of islands, bays and straits in the waters and on the bordering regions whose control will remain reason for perpetual conflict. The Bay of Bengal holds in it range of fossil fuels and hydrocarbons. Andaman and Nicobar Islands located in the bay’s premises are militarized by India.It has stationed its special naval forces in the demesne and aims to increase the patrolling networks in the region. India and China are contradicting each other with the apophthegm‘enemy of your enemy is your friend’. Beijing coupled with Pakistan considering it as the classical rival to India whereas India openly sides with the US. With the ‘Look East Policy’, Delhi has gained new allies, most of whom are China’s adversaries in the troubled waters of the South China Sea that are prescribed to react to the ‘Strings of Pearls’.

Chinese enlargement in Gwadar via the China Pakistan Economic Corridor (CPEC) project with Pakistan, has made its economic presence firm and permanent in the area. The country has rendered a foreign policy as sympathizer to the developing states but Indian analyst describe is as a curtain of its goodwill knitted by China under the aim to grow its military control all across Indian Ocean borders. The Indian Ocean allows China to achieve its long-term goals to sustain immense fiscal growth, providing it a stronger position to deter enemies and contenders alike. The Omni presence of Beijing has raised inquisitive period in the international arena about the new potentials of Xi’s administration. Will the Indian Ocean become another South China Sea and is an escalation likely, is an interesting question.US being not a direct participatory in region, has allowed India and China to exercise more openly in a region that is home to three nuclear powers.

Like always, there is uncertainty in what lies ahead in international relations. The ‘peaceful rise of China’, which can be labeled as the US equivalent to a ‘new world order’ seems to tackle the situation with diligence by providing a win-win situation to all parties. It also depends largely on the US and India, as to how far they are willing to push China, that could in the near future to influence the regional and international geopolitical setting. The economies of the People’s Republic of China and India are flourishing day by day whereas the US economy remains contracted with the domestic and international opposition to the President Trump’s economic vision. Yet, the economy of US remains at-least two fold greater than that of Beijing. However, the “Red Regan” is swiftly catching up and can fill the void in the decades to come. The puzzle considering the present geopolitical complexions remains uncertain as to which of the power would gain supremacy in the maritime space of the Indian Ocean. International law gives freedom of navigation in the international waters under the United Nations Convention on Law of the Sea (UNCLOS) 1982. However, with the speculation of historical evidences, international law could never have an eminent effect on the realist power maximization intentions of states.

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