CHINA WATCH [July 10-17]: South China Sea Decision and Fallout

The week of July 11-17 was dominated by news of the Permanent Court of Arbitration in the Dutch city of The Hague ruling against China’s claims to the South China Sea. The interior ministry was also very active in restating Pakistan’s commitment to CPEC, and the need to weed out Indian/Afghan elements of sabotage.

South China Sea

The biggest setback for China was the Permanent Court of Arbitration in the Dutch city of The Hague ruling in favor of The Philippines in a “landmark” decision that “could define not only the trajectory of the maritime disputes in the area but also the broader international order”.[1] While it sounds worrisome, it will likely have limited to no impact on China’s claim to the maritime region. To quickly recap, China claims a large portion of the South China Sea, arguably one of the most important maritime routes in the world, and the decision does not recognize these claims. Pakistan still fully supports China’s claim to the South China Sea, and will continue to stand beside it in the matter.[2]

As expected, Beijing reasserted its control over the region, citing historical relevance.[3] Addressing an international forum in Washington DC, Chinese ambassador to the United States Mr. Cui asserted that the South China Sea dispute would escalate as a result of this decision.

Security Threats

The interior ministry has stated that projects under the China Pakistan Economic Corridor (CPEC) may come under attack from both the Indian Research and Analysis Wing (RAW) and the Afghan National Directorate of Security (NDS).[4] This is an understandable sentiment, given the piling evidence of the destabilizing Indian influence in Pakistan uncovered in the past year, but also serves to maintain the vitriolic status quo. Later in the week, Interior Minister Chaudhry Nisar had a meeting with Chinese Minister for State Security Geng Huichang in Islamabad. In meeting, he highlighted the significance of China Pakistan Economic Corridor (CPEC) and its impact on improving bilateral relationship.[5] He reiterated Pakistan’s commitment to thwarting any challenges or threats to CPEC.

The Prime Minister went so far as to claim that he is personally overlooking CPEC projects.[6] The unlikely and ludicrous nature of this statement notwithstanding, it is a testament to Pakistan’s commitment to the CPEC initiative. It was also announced that the Gwadar-China oil pipeline is also in the works.[7]

Power Generation

Commerce Minister Engineer Khurram Dastgir has said that the power shortage in the country could be ended with the help of power projects being carried out under the CPEC.[8] There are two reasons why this piece of news should be taken with a grain of salt. First, the bulk of the Chinese investment, nearly 2/3rd of the $46 billion investment is dedicated to power projects that solve the acute energy shortage crisis in the country, so this is not necessarily new information or the government’s achievement. Second, promises like these have been made by successive regimes over the last decade with no solution in sight.

Federal Minister for Planning and Reforms, Ahsan Iqbal claimed that Sindh was the largest recipient of energy projects.[9] It is difficult to verify this claim, considering how power generation and distribution actually works, but it goes a long way to ease the province’s concerns over how the CPEC only benefits Punjab.

General

The high praise for CPEC from all quarters continued unabated. Syed Ali Nawaz Gilani, Secretary General of the Pakistan-China Friendship Association (PCFA) Khyber at Kashgar State Guest House, the Commissioner of Kashgar Administration Mr. Paerhati Rouzi asserted that the CPEC would boost the regional economy.[10] The Commander Fleet of Pakistan Navy, Vice Admiral Syed Arif Ullah Hussaini, has said that the CPEC would help in bringing stability for industries in Pakistan and help make Pakistan a leading state in the region.[11] Whereas Chinese media reported Gawadar as an emerging port on the world map.[12] National Security Advisor, Lt. Gen. (Retd) Nasser Khan Janjua emphasized on the significance of the CPEC for economic expansion of Pakistan and asserted that it would provide an opportunity for Pakistan to become a gateway for Central Asia.[13]

 

[1] Staff Reporter. (2016, July 13). China may dispute South China Sea verdict, but it’s a huge setback. Retrieved July 18, 2016, from https://www.theguardian.com/world/2016/jul/13/china-may-dispute-south-china-sea-verdict-but-its-a-huge-setback
[2] Zain, A. (2016, July 13). Islamabad sides with Beijing after tribunal ruling on South China Sea. Retrieved July 18, 2016, from http://en.dailypakistan.com.pk/headline/islamabad-sides-with-beijing-after-tribunal-ruling-on-south-china-sea/
[3] Staff Reporter. (2016, July 13). Beijing reasserts claims over South China Sea. Retrieved July 18, 2016, from http://tribune.com.pk/story/1140866/beijing-reasserts-claims-south-china-sea/
[4] Staff Reporter. (2016, July 11). RAW, NDS can sabotage CPEC: Interior Ministry. Retrieved July 18, 2016, from http://dunyanews.tv/en/Pakistan/344605-RAW-NDS-can-sabotage-CPEC-Interior-Ministry
[5] Staff Reporter. (2016, July 14). Pakistan committed to thwart conspiracies against CPEC: Nisar. Retrieved July 18, 2016, from http://www.pakistantoday.com.pk/2016/07/14/national/pakistan-committed-to-thwart-conspiracies-against-cpec-nisar/
[6] Staff Reporter. (2016, July 13). PM says personally overseeing CPEC projects. Retrieved July 18, 2016, from http://tribune.com.pk/story/1140800/back-business-pm-says-personally-overseeing-cpec-projects/
[7] Bhutta, Z. (2016, July 13). Pakistan working on Gwadar-China oil pipeline. Retrieved July 18, 2016, from http://tribune.com.pk/story/1140506/crude-export-pakistan-working-gwadar-china-oil-pipeline/
[8] Staff Reporter. (2016, July 10). China keen to share fruits of CPEC with Pakistan: Kashgar commissioner. Retrieved July 18, 2016, from http://nation.com.pk/business/10-Jul-2016/newsbrief
[9] Staff Reporter. (2016, July 14). Sindh largest recipient of energy projects under CPEC. Retrieved July 18, 2016, from http://nation.com.pk/business/14-Jul-2016/sindh-largest-recipient-of-energy-projects-under-cpec
[10] Staff Reporter. (2016, July 09). ‘CPEC to bring economic revolution in region’. Retrieved July 18, 2016, from https://www.thenews.com.pk/print/133448-CPEC-to-bring-economic-revolution-in-region
[11] Staff Reporter. (2016, July 09). CPEC to bring stability for industries. Retrieved July 18, 2016, from http://nation.com.pk/business/09-Jul-2016/cpec-to-bring-stability-for-industries
[12] Staff Reporter. (2016, July 10). Gwadar another Dubai emerging on world map: Chinese media. Retrieved July 18, 2016, from http://nation.com.pk/national/10-Jul-2016/gwadar-another-dubai-emerging-on-world-map-chinese-media
[13] Staff Reporter. (2016, July 12). CPEC to make Pakistan gateway for Central Asia and beyond: Gen Janjua. Retrieved July 18, 2016, from http://dailytimes.com.pk/islamabad/12-Jul-16/cpec-to-make-pakistan-gateway-for-central-asia-and-beyond-gen-janjua

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