The Implications of the China-Pakistan Economic Corridor for Pakistan-European Union Relations

The China-Pakistan Economic Corridor (CPEC) holds the potential to transform Pakistan along with its turbulent regional environment. In the short run, the multiple networks of infrastructure that the project provides will eventually improve Pakistan-European Union (EU) trade. Moreover, while the CPEC is unlikely to bring an immediate strategic shift in the bilateral dialogue, which is particularly lacking in political dynamics, its long-run promises can help to foster such dynamics. The project, if successful, can help Pakistan to establish a peaceful domestic environment and subsequently promote the country’s fresh image to reverse its softpower losses in Europe and beyond. This paper investigates contemporary Pakistan-EU relations, which have so far attracted little attention from international relations scholars. It presents the bilateral dynamics in the context of the CPEC, which is an unprecedented investment by China in Pakistan. The paper concludes by shedding light on the differences between China’s and the EU’s strategies vis-à-vis Pakistan. Despite the fact that the study focuses on one particular South Asian state, it can serve as a case study for the comparative analysis of China’s and the EU’s presence in third countries, especially those that, like Pakistan, have joined the Belt and Road Initiative.

Bilateralism or Multilateralism – The Preferred Forms of Economic Cooperation Between India and Pakistan with the People’s Republic of China

India and Pakistan have adopted different paths of developing economic relations with the People’s Republic of China. New Delhi focuses on advancing economic relations with Beijing through cooperation within multilateral formats, such as Asian Infrastructure Investment Bank, while Islamabad prefers strengthening economic ties through bilateral agreements, with the China-Pakistan Economic Corridor at the forefront. This article aims to show the main causes why India and Pakistan favor different forms of economic cooperation with China. The analysis consists of the description of the economic profile of India, Pakistan, and the People’s Republic of China, as well as an outline of bilateral and multilateral projects implemented on the New Delhi-Beijing, and Islamabad-Beijing lines.