TFD Stocks Overview

China – A rising power

What is so special about China? Why everyone talks about China? Why US is worried about China? Who is responsible for recent India China border dispute? Why US and India are against CPEC? Chinese leader Xi Jinping in 2013 introduced a new initiative of economic development and prosperity called One Belt-One Road (OBOR) which laid emphasis on connectivity and cooperation primarily between People’s Republic of China and the rest of Eurasia. OBOR has 6 trade corridors.1) China-Mongolia-Russia corridor,2)New Eurasian Land bridge,3)Chine-Central Asia-West Asia corridor,4) China- Indochina Peninsula Corridor,5) China -Myanmar-Bangladesh-India Coridor,6) China Pakistan Economic Corridor(CPEC) Out of these 6 corridors CPEC is the main component of OBOR and is its flag ship project. The basic concept of CPEC is to join Gwadar (Arabian Seaport in Pakistan) with Kashgar/ Xinjiang province in Western China. China is a huge country with central, western and southern China well developed, it is eastern China that is underdeveloped and through connectivity China plans to bring this portion also at par with the rest of the main land. The most important strategic location on the mouth of Indian Ocean is the deep sea port of Gwadar. Therefore Gwadar becomes the main component of CPEC giving shortest access; because of its location it has advantage over other corridors. It links Gwadar with Kashgar at the middle of OBOR, where the quantum of business will be highest. This means this route will take over preference over the others and lead to economic well being of Pakistan and other countries involved. This also means that India will have no role to play and that is what is pinching her
China has launched this mega project CPEC that would benefit three fourth of the world and would also strengthen their economy apart from creating better understanding amongst different countries. In spite of negative propaganda by India claiming that part of CPEC projects are being constructed on disputed land, Pakistan’s position with the support of China is very clear that it is India that has forcefully occupied part of Kashmir and that is what makes it disputed. But in diplomatic terms serious concern and reservations are being shown especially by U.S and India, despite that the project is heading fast towards completion. China and Pakistan both have time and again warned that nobody will be allowed to interfere in CPEC as it concerns welfare of millions of people living all over the world.
In a latest interaction of Chinese Consul General His Excellency Li Bijian while talking to delegation of Karachi Editors Club (KEC) said that flagship CPEC project of Belt and Road is moving smoothly as per the program and the rumours of slowing down is nothing but false propaganda that must be countered by the media. He further emphasized that media being fourth pillar of the state enjoys pivotal position and can play great role in defeating the negativity being spread on CPEC by vested interests. Another factor that has disturbed US and India is the growing good relations between Iran and China. India and US both are in shock due to cancellation of project of Chahbahar and laying of gas pipe line by India both agreements have been cancelled and handed over to China is major development in the region. These new developments have been welcomed by Pakistan and the three countries China Iran and Pakistan can draw good benefits from this new strategy adopted by China. It is this quadrilateral alliance that is challenging the US- India opposition in the region now.
Iran has suffered a great deal due to uncalled for sanctions by US. However it was Barak Obama who realised and entered in to historic agreement in 2015 between Islamic Republic of Iran and P5+1(Five permanent members of United Nation Security Council plus EU. Based on Iran’s Nuclear deal framework, the joint comprehensive plan of action between Iran and P5+1 and European Union was announced on 14 July 2015 in Vienna. Except Israel which considered this deal as threat to their survival, all other countries welcomed the deal. On 8 May 2018 US President Donald Trump announced that he was withdrawing from the Iran Nuclear deal, and added that US will reimpose stringent sanctions as before on Iran and consider fresh penalties. Trump while making this statement in a way never bothered and disregarded relations with P5+1. This was widely criticised by Barak Obama who said the world will be unsafe and another war in Middle East, but it had no effect on Trump. India under the influence of US committed blunder by intruding into China claimed territory of Galwan valley in June, at least 76 soldiers were reportedly injured besides 20 dead. No firearms were used as per 1996 agreement barring guns and explosives that simply show superiority and fighting skill of Chinese soldiers. China has rightly blamed India for the dispute on LAC (Line of actual control) between the two countries and this was made clear by Chinese defence minister Gen Wei Fenghe when he met his counterpart Indian defence minister Rajnath Sing in Moscow. The congress has demanded from PM Modi and defence minister to take the nation into confidence and tell people exact position on the Ladakh border of all the negotiations held so far because it is no more a secret that China has captured some of the areas that was wrongly held by Indians. China’s most distinguished feature has been they always remain peaceful and believe in fair play and justice but never tolerate any nonsense. India having learnt bitter lesson in 1962 by now should have avoided any type of course confrontation. India thought by being strategic partner of US and with their full support can do anything. India thought US shall intervene in case of China’s claim of Galwan valley but there was no reaction from US. Trump is otherwise under great pressure due to US elections and by design keeping away from interfering in such matters, secondly Trump has deliberately targeted China to get favourable response from voters but it did not work. The trump calls situation along India China border has been “very nasty” and the Chinese are “going on it ” much more strongly, he added he would love to get involved and help. But in all probabilities China may not agree to third party mediation especially at a time when Trump has shown hostility towards China and continues to threaten further tough economic measures but China remains unmoved and not bothered. Till such time elections are held policy of wait and see will be followed on both sides.
Historically China has been termed as a sleeping giant but that giant has now woken up and is today’s world’s great rising power that is fast changing the geo- political and non-economic realities of the region and the world.

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