Contemporary Chinese Political Economy and Strategic Relations: An International Journal (Dec 2021)
China-Pakistan Economic Corridor Energy Projects: China’s Strategy and Implications for Pakistan
Abstract
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 China’s energy industry. It argues against CPEC as a win-win opportunity for both countries. Drawing on David Harvey’s concept of spatial fix, the CPEC power projects are designed with China’s 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 Pakistan’s debt burden and threatens its national sovereignty.
