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Blog / 23 Aug 2025

China-Pakistan Economic Corridor 2.0

Context:

The 6th Strategic Dialogue between China and Pakistan held in Islamabad in August 2025 has reignited India’s geopolitical concerns. With Chinese Foreign Minister Wang Yi and Pakistan’s Foreign Minister Ishaq Dar reviewing CPEC 2.0.  The upgraded phase of CPEC, involving deeper cooperation, technological integration, and expansion into sensitive zones, demands a critical examination from India’s perspective.

What is CPEC 2.0?

CPEC 2.0 represents an expansion and deepening of the original China-Pakistan Economic Corridor:

  • Launched in 2013, CPEC connects Kashgar (China) to Gwadar (Pakistan) via Pakistan-occupied Kashmir (PoK).
  • CPEC 2.0 adds digital infrastructure, energy corridors, special economic zones (SEZs), and potentially, Afghanistan's inclusion.
  • Estimated total investment: $62 billion.
  • Strategically tied to China’s larger Belt and Road Initiative (BRI).

 Why is India Concerned?

1. Violation of Sovereignty

CPEC passes through Pakistan-occupied Jammu and Kashmir (PoJK)—a territory legally claimed by India. India views any investment or development in PoK as a breach of its sovereignty, violating international norms.

2. Strategic Threat

    • CPEC enhances China’s naval access to the Arabian Sea through Gwadar Port, increasing Chinese presence near India’s western coast.
    • It may also serve dual-use military infrastructure, allowing faster deployment of Chinese assets.
    • China's connectivity to Afghanistan via CPEC potentially encircles India.

3. Strengthening China-Pakistan Axis

CPEC 2.0 signifies a deeper China-Pakistan strategic partnership, affecting India’s regional influence and limiting strategic maneuverability, especially in South Asia and Central Asia.

 India’s Countrmeasures

Diplomatic and Strategic Steps

    • Boycott of BRI Summits: India continues to diplomatically oppose CPEC and BRI on global platforms.
    • Chabahar Port Development: India, Iran, and Afghanistan promote alternative regional connectivity.
    • India-Middle East-Europe Corridor (IMEC): India’s long-term counter to CPEC and BRI.

Engaging Allies

    • Strengthening ties with Russia, US, Iran, and Gulf countries to counterbalance the China-Pakistan proximity.
    • Promoting democratic, rule-based order in the Indo-Pacific and Eurasia.

Conclusion:

CPEC 2.0 is not merely a bilateral initiative—it is a strategic recalibration that impacts India’s core interests. India must remain vigilant, actively contest sovereignty violations, and strengthen regional and global alliances. Multilateral engagement, infrastructure diplomacy, and consistent global advocacy are key to safeguarding India's territorial integrity and strategic autonomy.