China-Pakistan Economic Corridor Energy Projects: China's Strategy and Implications for Pakistan

This paper explores the extent to which the China-Pakistan Economic Corridor (CPEC) - a flagship project of the Belt and Road Initiative - addresses the problem of overproduction in Chinas energy industry. It argues against CPEC as a win-win opportunity for both countries. Drawing on David Harveys c...

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Bibliographic Details
Published in:Contemporary Chinese political economy and strategic relations 2021-12, Vol.7 (3), p.1269-XVII
Main Authors: Khan, Hidayat Ullah, Govindasamy, Geetha, Akhir, Md Nasrudin Md
Format: Article
Language:English
Subjects:
china-pakistan economic corridor
Coal industry
Communication
Economic conditions
Economic growth
Energy industry
energy projects
Exports
Growth models
Legitimacy
Power plants
Recessions
spatial fix
Unemployment
Wind power
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Summary:This paper explores the extent to which the China-Pakistan Economic Corridor (CPEC) - a flagship project of the Belt and Road Initiative - addresses the problem of overproduction in Chinas energy industry. It argues against CPEC as a win-win opportunity for both countries. Drawing on David Harveys concept of spatial fix, the CPEC power projects are designed with Chinas quest for a new geographical space to absorb its surplus production, and to create demand for its state-owned enterprises, which face less return on investment at home. In other words, China is diversifying surplus capital in order to mitigate domestic economic crises. The study therefore concludes that the CPEC energy projects serve as a spatial fix for China, but adds to Pakistans debt burden and threatens its national sovereignty.
ISSN:2410-9681