What is CPEC-II and why is Pakistan betting big on China’s ambitious project? Major concern for India due to…

CPEC phase 2 or CPEC-II is the next phase of Beijing's China-Pakistan Economic Corridor (CPEC), which aims to extend the project to new areas in the region, including Afghanistan.

Published date india.com Published: August 20, 2025 9:45 PM IST
What is CPEC-II and why is Pakistan betting big on China's ambitious project? Major concern for India due to...
(File)

CPEC-II: Pakistan is betting big on the China-Pakistan Economic Corridor (CPEC), with the country’s Prime Minister Shehbaz Sharif scheduled to visit Beijing at the end of August to inaugurate the CPEC-II, the second phase of China’s ambitious project that aims to build a 3,000 km long sea-and-land-based corridor to to secure and shorten the route for China’s energy imports from the Middle East.

What is CPEC-II?

CPEC phase 2 or CPEC-II is the next phase of Beijing’s China-Pakistan Economic Corridor (CPEC), which aims to extend the project to new areas in the region, including Afghanistan. The CPEC-II is focused on industrial development with the aim to establish industries like sugar factories across Pakistan.

Additionally, under CPEC-II, the two countries will increase mutual cooperation in various fields such as agriculture, science and technology.

CPEC, a vital part of China’s ambitious Belt and Road Initiative (BRI), was launched a decade ago in 2015, with the first phase focusing on construction of infrastructure in Pakistan, energy projects, such as roads, power plants and the development of the strategic Gwadar port.

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How CPEC benefits Pakistan?

According to experts, Pakistan views CPEC-II as means to resolve its economic troubles and heal its ruined economy to some extent. Islamabad says the project will boost the country’s agriculture sector, technological investment and connectivity, especially in the Gwadar port region.

Why there is concern for India?

As per security experts, CPEC-II is designed to to indirectly demonstrate Chinese power in South Asia and increase Beijing’s military influence in Pakistan, with the proposed establishment of a Chinese military base and airbase in Gwadar. These developments, if true, could pose a major security threat to India as the CPEC passes through Pakistan-occupied Kashmir (PoK), which New Delhi considers as part of its territory.

Story Highlights

  • CPEC-II is the second phase of Beijing’s China-Pakistan Economic Corridor (CPEC), which was launched in 2015.
  • CPEC passes through Pakistan-occupied Kashmir (PoK), posing a major security threat to India.
  • China plans to increase its military influence in Pakistan with CPEC-II.
  • Pakistan believes the CPEC-II would help resolve its economic troubles and heal its ruined economy.

Notably, the Gwadar port is located in the restive Balochistan province, and anger is simmering in the volatile region due to rampant unemployment and exploitation of resources in the region by China, with Baloch separatist groups using the resentment among locals as a rallying cry.

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