China–Pakistan Economic Corridor (CPEC)

China–Pakistan Economic Corridor (CPEC; Chinese: 中巴经济走廊; pinyin: Zhōng bā jīngjì zǒuláng; Urdu: چین پاکستان اقتصادی راہداری) is a 3,000 km Chinese infrastructure network project currently under construction in Pakistan. This sea-and-land-based corridor aims to secure and shorten the route for China’s energy imports from the Middle East, avoiding the existing path through the Straits of Malacca between Malaysia and Indonesia, which could be blockaded in case of war, thereby threatening China’s energy-dependent economy. Developing a deep-water port at Gwadar in the Arabian Sea and establishing a robust road and rail network from this port to the Xinjiang region in western China would serve as a shortcut, enhancing trade between Europe and China. In Pakistan, the project aims to address electricity shortages, develop infrastructure, and modernize transportation networks, while also transitioning the economy from an agriculture-based structure to an industrial one.

CPEC is seen as the main plank of China's Belt and Road Initiative, and as of early 2024, is the BRI's most developed land corridor. CPEC's potential impact on Pakistan has been compared to that of the Marshall Plan, undertaken by the United States in post-war Europe.

Following the proposal by Chinese premier Li Keqiang in 2013 once operational, the existing 12,000 km journey for oil transportation to China will be reduced to just 2,395 km. This is estimated to save China $2 billion per year. China had already acquired control of Gwadar Port on 16 May 2013. Originally valued at $46 billion, the value of CPEC projects was $62 billion as of 2020. By 2022, Chinese investment in Pakistan had risen to $65 billion. China refers to this project as the revival of the Silk Road.  CPEC envisages rapidly upgrading Pakistan's infrastructure and thereby strengthening its economy by constructing modern transportation networks, numerous energy projects, and special economic zones.

The potential industries being set up in the CPEC special economic zones include food processing, cooking oil, ceramics, gems and jewelry, marble, minerals, agriculture machinery, iron and steel, motorbike assembling, electrical appliances, and automobiles.

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