China-GCC ties and Pakistan
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Recent weeks have seen a flurry of activity between China and the Gulf Co-operation Council (GCC) countries. The Council Secretary General, accompanied by four foreign ministers, visited Beijing. Foreign Minister Wang Yi visited some Gulf Arab countries. In Riyadh he said, “There is never a power vacuum” and that, “There is no need for patriarchy from outside.” He was obviously referring to the West’s meddling in the Middle East. He was also hinting at the receding western interest in the Middle East today and the Chinese intention to fill the vacuum, but in a different style.
Pakistan enjoys excellent relations with GCC countries and China and therefore views these developments as positive. Since 2015, China has been the world’s foremost energy consumer and today imports 70 percent of its energy requirement from the Gulf Region. In 2020, China replaced the European Union as the largest trading partner of GCC countries, replacing the European Union. On the other hand, oil imports of the US from the Gulf have decreased and European countries too are trying to shift to alternative energy sources. The weakening of Arab countries like Iraq and Syria means that Israel’s threat perception too has changed. Till recent years, the security of Israel was a factor for western focus in the region.
The substance, style and practice of international relations has clearly undergone a change. The world of blocks, ideological divisions and certainties has been replaced by glorious uncertainties which also offer more choices and greater maneuverability. For example, India keeps good relations with the United States and Russia while Israel has friendly ties with China and the US. So the Gulf Arab countries can have close relations with China without forsaking ties with the West.
China Pakistan Economic Corridor (CPEC) is a flagship project of China’s Belt and Road initiative. It is a $62 billion investment in Pakistan that links the Pakistani port of Gwadar to Kashghar in Western China. China had, about a decade ago, embarked on an ambitious project of developing its Xinjiang province. This obviously required huge energy resources which could be transported overland through Pakistan. That would not only reduce transportation costs but also address what is called China’s Malacca Dilemma. For Pakistan, CPEC was a win-win proposal as it would become conduit for China’s trade with Middle East and North Africa.
Cutting down transportation costs suits both China and GCC countries. And Pakistan benefits by becoming a facilitator.
Javed Hafeez
Cutting down transportation costs suits both China and GCC countries. And Pakistan benefits by becoming a facilitator. CPEC would ultimately create more than two million jobs in Pakistan and bring substantial revenues through taxes and tolls. It has already given Pakistan a deep sea port which would create regional trade hub and increase connectivity. Trade promotes peace and people to people interaction. Pakistan Navy has already bolstered its presence around Gawadar in order to ensure its safety and security. This will contribute positively to regional maritime security.
Gawadar city is the commercial and industrial hub of tomorrow. It will receive Gulf oil and gas and pump it to western China through pipelines. It will also receive Chinese cargo to be shipped to Middle East and Africa. Petrochemical industries of various kinds will be located here. This city could attract wholesome foreign investments. It could also facilitate the export of edible items from Pakistan to various Gulf ports. Canning units for fruits and vegetables could be built here. This port city will have an international airport, an economic free zone, de-salination plant and petrochemical industries. It will provide employment opportunities to the youth of Balochistan.
As CPEC addresses the underdevelopment issue in Xinjiang, it will also create new industrial, commercial and vocational opportunities in Balochistan. The province is rich in mineral resources like Xinjiang and it ought to benefit the most from CPEC. Balochistan has plenty of virgin lands where livestock can be reared, fruits and vegetables grown for marketing within Pakistan and exported through the Gawadar port. Economic zones will come up along all CPEC routes, benefitting all provinces in Pakistan.
Xinjiang is China’s largest province with diverse topography. It produces a bulk of Chinese cotton. Being the starting point of the fabled Silk Route, it has many historic monuments, including Muslim shrines. In 2014, when I visited Kashghar, vast developmental activities had already begun. Since GCC energy resources are destined for Xinjiang, business interaction will certainly develop. Therefore, this area is likely to develop as a top destination for GCC investors and businessmen importing goods from China. It could also attract Arab tourism.
China-GCC relations have great potential as China follows a policy of non-interference and could be a factor of stability with good relations on both sides of the Gulf waters. Its defense co-operation with some GCC nations will promote the regional balance of power and thus promote peace. Increased business interaction would not only promote prosperity on both sides but also greatly benefit Pakistan.
- Javed Hafeez is a former Pakistani diplomat with much experience of the Middle East. He writes weekly columns in Pakistani and Gulf newspapers and appears regularly on satellite TV channels as a defense and political analyst.
Twitter: @JavedHafiz8
