The US and China have been at loggerheads over the Belt and Road Initiative (BRI) for some time now. So it wasn’t surprising to see another senior American diplomat attempting to sow doubts about BRI’s intent and benefits. But what is surprising this time is the specific nature of criticism the State Department has lately heaped on the BRI’s flagship – the China-Pakistan Economic Corridor (CPEC).
Addressing a US think-tank in Washington last Friday, Alice Wells, the Assistant Secretary of State for South and Central Asian Affairs, had many things say about CPEC-related “cost, debt, transparency and jobs”. She had come in well-researched, comparing the benefits of American investments made here with the alleged costs for Pakistan under CPEC. By picking part CPEC, she seemed to be supporting the broader American narrative that BRI lending practices were harmful for recipient countries.
But it seems that the tough-talk, which was delivered in fine diplo-speak, was mainly for an audience of one: China. “Why (can China) not adopt Paris Club standards (for lending)? Why not increase your concessional loans as well as incorporate grants as part of your development assistance to lesser developed countries? Why not abide by the infrastructure principles at the G20? Why not be transparent? Report your official lending to other countries,” Ms. Wells asked again and again.
Interestingly, after Ambassador Wells’ speech, the first party to mount the defense was the Chinese ambassador, who went public the very next day to label the US official’s account of CPEC as “irresponsible remarks”. Speaking at a media forum on Saturday, Ambassador Yao Jing noted, “If Pakistan is in need, China would never ask Pakistan to repay its loans in time.”
On the Pakistani side, which hasn’t been as celebratory of CPEC lately as it was in the projects’ formative years, the response came but it was more measured. Instead of merely waxing lyrical about the “all-weather friendship,” three government ministers responded without the customary outrage and instead tried to reassure the Americans that CPEC isn’t a debt burden on the economy. The message: CPEC is here to stay, and Pakistan is open for all investors.
As the opposition also lent its support to CPEC over the weekend, it is clear that CPEC still enjoys all-parties support inside Pakistan. It is true that the next phase of CPEC is stoking a debate at home as to what shape, form and terms the upcoming projects should take. And China is singing an accommodating tune as well. The jury is out on whether Pakistan can achieve an industrial revival and massive job-creation through the much-touted special economic zones under CPEC.
Be that as it may, such back and forth between US and China suggests that CPEC is becoming a flashpoint in recent American campaign to counter the spread of China’s BRI-driven influence in Europe and Asia. If the war of words between the two sides intensified over CPEC, what will Pakistan do? Currently, Pakistan is hard at work to improve its relations with US, while at the same time it is trying to breathe some life into CPEC after a slow year. How long can Pakistan manage this tough balancing act?
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