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China defends progress of Pak. corridor
Why is it in news?
- China has shown firm support to complete China Pakistan Economic Corridor.
Details:
- China has said reports suggesting it was seeking additional guarantees from Pakistan before sanctioning a loan for a key project under the China Pakistan Economic Corridor (CPEC) are baseless.
About China Pakistan Economic Corridor:
- CPEC (China-Pakistan Economic Corridor) is a part of China’s ambitious project, Belt and Road initiative.
- CPEC is a clutch of projects valued at $51 billion project which aims at rapidly expanding and upgrading Pakistan’s infrastructure and strengthening the economic ties between the People’s Republic of China (China) and Pakistan.
- It includes building roads, laying railway lines and pipelines to carry oil and gas.
- CPEC eventually aims at linking the city of Gwadar in South Western Pakistan to China’s North Western region Xinjiang through a vast network of highways and railways.
- The proposed project will be financed by loans, that will be disbursed to the Government of Pakistan by Chinese banking giants such as Exim Bank of China, China Development Bank, and the Industrial and Commercial Bank of China.
- The ‘China-Pakistan Economic Corridor’ violates India’s sovereignty and territorial integrity. India’s principal objection was that CPEC passed through Pakistan-occupied Kashmir (PoK).