CPEC won’t lead to a debt trap, says China

CPEC won’t lead to a debt trap, says China

News

1. Chinese Councilor and foreign minister Mr. Wang Yi was on a 3 day visit to Pakistan.

Background

2.    Why the visit was important?

• First high level visit to Pakistan after Imran Khan became PM.
• PM Imran Khan had been critical of CPEC in the past for lack of transparency.
• India and USA had 2+ 2 talks recently.

What transpired during the visit?

  3.   On Bilateral Relation

PM Imran Khan termed Pakistan’s friendship with China as the ‘Cornerstone of Pakistan’s foreign Policy’.

Mr. Wang called Pakistan as China’s ‘iron brother’ and the bilateral partnership as ‘an anchor for regional peace and stability’.

 4.  In defense of CPEC: China’s claim

China rejected accusations that its financial backing of CPEC was a ‘debt trap’ and violates Pak sovereignty.

• Underscored the significance of CPEC for mutual benefit of the people of both countries.
• Stressed on no strings attached backing of CPEC.
• 18 out of 22 projects CPEC have direct Chinese investment or offered aid, only 4 on concession loan.
• $19 billion invested in CPEC.
• 70,000 new jobs in Pak.
• Pakistan growth rate to be pushed by 1% to 2 %.
• First phase of CPEC was focused on energy and Infrastructure, Pakistan can take it to the next level.

5.     China’s relation with Pakistan Army

• Mr. Wang termed the bilateral military relation as important part of all weather strategic cooperative partnership between the two countries.
• Pak army reiterated support for CPEC and guaranteed its smooth development.
• Pak Army Chief reassured Pakistan’s commitment to fight East Turkistan Islamic Movement (ETIM) as part of its counter terrorist measures.

About ETIM:  It was founded by Uyghur Separatist; Goal is to establish east Turkestan as a separate state of Xinjiang

6.    China on Afghanistan

• Stressed on the relevance of the trilateral China-Pakistan-Afghanistan dialogue as a platform to align perception between Pakistan and Afghanistan.
• At the inaugural meeting of trilateral mechanism, Afghanistan was offered participation in CPEC.
• China has agreed to train an Afghanistan mountain brigade.