Pakistan Unrest Dampen China’s Belt and Road Ambitions

Beijing shows signs of frustration as megaprojects in Pakistan, including Gwadar port and CPEC, face growing security risks, observers say

·         Continued instability posed unprecedented challenges to the Gwadar port and the China-Pakistan Economic Corridor (CPEC).

·         The deep-sea port of Gwadar, which gives Beijing direct access to the Indian Ocean, has long been seen as the centrepiece of the US$60 billion CPEC, which was launched over a decade ago.

·         Baloch ethnic group long complaining about alleged human rights violations, the exploitation of mineral resources and the growing divide between their community and Pakistan’s biggest ethnic group – Punjabis.

·         The Sust port, a critical transport hub for both passengers and cargo at the China-Pakistan border, had been closed since August 2 due to another demonstration.

·         Local traders began protests in mid-July near the Sust port in northern Pakistan, near the Khunjerab pass border with China, because of tax issues related to Chinese imports.

·         China values Pakistan’s strategic location and role in countering India’s influence, while Pakistan needs Chinese investment and diplomatic support.

 

[ABS News Service/12.08.2024]

Violent demonstrations in Pakistan’s southwestern port city of Gwadar in the past two weeks have exacerbated concerns about the country’s security situation and its impact on Chinese-funded megaprojects.

Despite Pakistan’s efforts to bolster security at China’s repeated request, the situation seems to be deteriorating, with a surge in unrest and violence targeting key Chinese projects under the Belt and Road Initiative, according to observers.

They warned that continued instability posed unprecedented challenges to the Gwadar port and the China-Pakistan Economic Corridor (CPEC), a flagship project under the belt and road strategy, Beijing’s overseas infrastructure investment scheme, and China’s “all-weather” partnership with Pakistan.

Tensions in Gwadar spiked after protesters led by a Baloch ethnic nationalist movement in the southwestern Balochistan province clashed with security forces deployed to guard the port project early last week.

While Pakistan’s army denounced “unprovoked assaults by a violent mob”, which it said killed one soldier and injured 16 others, protesters claimed dozens of Baloch people were arrested by authorities while mobile and internet services were suspended for days.

Located in resource-rich Balochistan, which borders Iran and Afghanistan and is Pakistan’s largest and poorest province, the deep-sea port of Gwadar, which gives Beijing direct access to the Indian Ocean, has long been seen as the centrepiece of the US$60 billion CPEC, which was launched over a decade ago.

The presence of CPEC-related Chinese firms and workers in Gwadar attracted the protesters to the port city, according to Eram Ashraf, an international relations scholar who specialises in China-Pakistan relations.

“Protests in Gwadar are not new, and they will not be going away soon as they are carried out by those in the province who have genuine grievances with the Pakistan government,” she said.

Ethnic tensions and separatist sentiments have been rife in the region, with the Baloch ethnic group long complaining about alleged human rights violations, the exploitation of mineral resources and the growing divide between their community and Pakistan’s biggest ethnic group – Punjabis.

Ashraf said the Chinese projects and citizens in Gwadar were not the real target of the latest round of protests and so were not directly threatened for the moment.

“The security threat to the Chinese is from terrorists who can infiltrate the protests and use them as cover to launch an attack. Some of the Chinese in Gwadar say they feel safe there because of the presence of Pakistan’s military,” she said.

Meanwhile, the Chinese embassy in Pakistan issued an alert on its website on Tuesday, confirming the Sust port, a critical transport hub for both passengers and cargo at the China-Pakistan border, had been closed since August 2 due to another demonstration.

According to Ashraf, local traders began protests in mid-July near the Sust port in northern Pakistan, near the Khunjerab pass border with China, because of tax issues related to Chinese imports.

In March, five Chinese were killed in a suicide car bombing in the Khyber Pakhtunkhwa province in one of the deadliest attacks targeting Chinese projects and personnel in years, prompting Beijing to urge Islamabad to “take effective measures” to tackle militant violence.

The bottom line picture is that despite frustrations by both countries, we are unlikely to see the liquidation of big projects such as Gwadar port, which is of strategic importance for China, but we might well see the further scaling back of new projects and investments in Pakistan.

Ashraf noted that Beijing described Islamabad as “a priority in its foreign relations” in the joint statement issued after Pakistani Prime Minister Shehbaz Sharif’s China visit in June – a departure from past descriptions of it as “the highest priority”.

Beijing did not deny reports that Chinese officials had urged Islamabad to allow China’s private security companies to protect Chinese projects and workers there, with spokeswoman Mao saying on Tuesday that China “stands ready to work with Pakistan to deepen security cooperation.”

However, Murtazashvili said both sides had strong incentives to maintain close ties, as China values Pakistan’s strategic location and role in countering India’s influence, while Pakistan needs Chinese investment and diplomatic support.

“The US factor adds complexity, as Pakistan tries to balance relations with both powers. Islamabad seeks to avoid overreliance on China by engaging Washington, but its options are constrained by tensions over issues like Afghanistan,” she said.