China–Pakistan Economic Corridor relaunch exposes China–Pakistan interdependence

China-Pakistan Economic Corridor Relaunch

The China-Pakistan Economic Corridor (CPEC) has become a strategic lifeline for Pakistan and a key foothold for China in South Asia.

Phase II of CPEC has faced numerous challenges, including attacks on Chinese personnel, slow loan repayment, and a lack of progress in executing major projects.

However, during Chinese Foreign Minister Wang Yi's visit to Pakistan in May 2025, public statements suggested China's renewed interest in completing the project.

Phase II of CPEC aims to develop industrial parks, which relies on the availability of energy from Phase I to create jobs, facilitate production, and generate income for Pakistan to repay Chinese loans.

Despite positive statements, there is little progress on the ground.

China's renewed interest in CPEC suggests the interdependence between the two countries.

Author's summary: CPEC is crucial for both China and Pakistan.

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East Asia Forum East Asia Forum — 2025-10-17

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