The Political Economy of the China-Pakistan Economic Corridor

Contents
List of Contributors
List of Figures
List of Tables
Chapter 1: China-Pakistan Economic Corridor and the Belt and Road Initiative
1.1 What is China’s Motivation for Implementing CPEC?
1.2 Can the Promotion of Economic Development Reduce or Eliminate Terrorist Activities in Pakistan?
1.3 Will CPEC Trigger an Influx of Muslim Immigrants to China, Thereby Posing a Threat to China’s National Security?
1.4 While Implementing CPEC’s Projects, How Should China Interact with Various Domestic Systems and Mechanisms in Pakistan?
1.5 Should China, as the Principal Investor and Implementor of CPEC and the BRI, Advocate the Principle of Inclusive Development So That All Social Groups in Pakistan Can Share in the Projects’ Economic Benefits?
Chapter 2: Structural Factors of International Relations That Affect China-Pakistan Economic Corridor
2.1 Structural Variables of International Relations
2.2 Inter-state Relations
2.2.1 China-Pakistan Bilateral Relations
2.2.2 Trilateral Relations: China-Pakistan with Third-Party Participants
2.3 Geopolitics
2.3.1 The Geo-strategic Values of South Asia
2.3.2 India-Pakistan Confrontation
2.3.3 Kashmir Conflict
2.4 Energy Politics
2.5 Connectivity Politics
2.6 Cognitive Politics
2.6.1 Countermeasures and Suggestions
Chapter 3: How Pakistan’s Political System Works on China-Pakistan Economic Corridor: Political Dominance and Socio-economic Development
3.1 Introduction
3.2 Lopsided Sharing of Political Power
3.3 Contentious Fiscal Resource Distribution
3.3.1 Fiscal Mechanism: Provinces Rely on Federal Center
3.3.2 Population as the Sole Criterion
3.3.3 A Turning Point: The 7th NFC Award in 2009
3.4 Terrorism and Socio-economic Development
3.4.1 Impacts of Unbalanced Resource Distribution on Terrorism
3.4.2 Has the 7th NFC Worked?
3.5 China-Pakistan Economic Corridor
3.5.1 The Motivations of China to Build CPEC
3.5.2 Pakistan: Being a Beneficiary
3.5.3 What to Do to Reduce Terror Threats?
3.6 Conclusion
Chapter 4: Research on the Relationship between Pakistan’s Institutional Risks and China’s Foreign Direct Investment in Pakistan from the Perspective of Bilateral Political Relations
4.1 Introduction
4.2 The Selection of a Location for FDI and Institutional Risks of a Host Country
4.3 Types of Pakistan’s Institutional Risks and the Relationship between the Risks and Chinese FDI in Pakistan
4.3.1 Major Institutional Risks Faced by FDI in Pakistan
4.3.2 The Non-linear Relationship between Pakistan’s Institutional Risks and Chinese FDI in Pakistan
4.4 The Evolution of China-Pakistan Political Relations and the Risk-mitigating Role Thereof
4.4.1 Bilateral Friendly Relations Shifting from Geopolitics to Geo-ecnomics in an All-round Way
4.4.2 The Role of Friendly Political Relations in Mitigating Risks for Chinese FDI in Pakistan
4.5 Main Challenges and Development Prospects
4.5.1 Challenges Faced by Chinese FDI in Pakistan
4.5.2 Policies and Prospects
Chapter 5: Fiscal System and the Development of Baloch Nationalist Movement: On the  Influence of China-Pakistan Economic Corridor
5.1 Gwadar Port and Balochistan Separatism
5.2 The Origin of Baloch Nationalism and Separatism: The Failure of Political Federalism or the Tribal Loyalty That Weakens the Sense of Identity as Pakistanis?
5.3 Fiscal System and National Unity
5.4 Unfair Transfer Payments and the Rising Tendency of Baloch Separatism from 1974 to 2010
5.4.1 1974–2010: Highly Centralized Fiscal Power and Unfair Transfer Distribution Mechanism
5.4.2 The Increasing Radicalization and Separatist Tendency of the Baloch Nationalist Movement
5.5 The 2010 Fiscal Reform and Changes of Political Demands of the Baloch Nationalists
5.5.1 The Fairness of Fiscal System has been Enhanced after the Diversified Distribution Criteria Were Adopted in 2010
5.5.2 The Separatist Tendency of the Baloch Nationalists has been Suppressed to a Certain Extent
5.6 Countermeasures against Baloch Separatism Under the Background of CPEC
Chapter 6: Implications of Pakistani Dynastic Politics for the Construction of China-Pakistan Economic Corridor: Potential Risks and Policy Responses
6.1 Introduction
6.2 Dynastic Politics and Pakistan’s Political Ecology
6.2.1 The Formation and Operation Logic of Pakistani Dynastic Politics
6.2.2 Prominent Challenges of Dynastic Politics to CPEC
6.2.3 Instabilities of CPEC Cooperation Caused by Dynastic Politics
6.3 Risks and Challenges of Dynastic Politics to the Construction of CPEC
6.4 Recommended Policies
6.4.1 Establish a Complete Social Risk Assessment System for CPEC
6.4.2 Establish an Inter-provincial Exchange Platform for CPEC to Hedge the Negative Impact of Dynastic Politics
6.4.3 To Cultivate a Reliable, Useful, Trusted Overseas Activity Talent Team
6.4.4 Build a Carrier and Platform for People-to-People Connectivity
Chapter 7: Research on the Industry Spatial Layout of China-Pakistan Economic Corridor
7.1 Topics in this Chapter
7.2 Contradictions with Traditional Location Theory
7.2.1 Cost School
7.2.2 Market School
7.2.3 Behavior School
7.2.4 Comments on Traditional Location Theory
7.3 Characteristics of Pakistan’s Existing Industry Spatial Layout
7.3.1 Textile Industry: Concentrated in Certain Eastern Textile Cities, and Scattered in a Handful of Western Central Cities
7.3.2 Leather Industry: Densely Concentrated in Major Eastern Cities
7.3.3 Large-scale Manufacturing Industry: Mainly Located in Eastern Central Cities, and Rarely Seen in Western Provinces
7.3.4 Steel Industry: Widespread in Major Eastern Cities, But Rarely Seen in Western Provinces
7.3.5 Service Industry: Widely Distributed Nationwide, with High-end Services Mainly Available in Certain Eastern Large Cities
7.4 Characteristics of China-funded CPEC’s Industry Spatial Layout
7.4.1 Most Energy Projects Are Built in the Eastern Provinces
7.4.2 Transportation Projects Focus on the Developed Eastern Region
7.4.3 Gwadar Port: The Only Key Construction Site in Western Pakistan
7.5 Relationship Between CPEC’s Industry Spatial Layout and National Strategies of China and Pakistan
7.5.1 Relationship Between CPEC’s Industry Spatial Layout and China’s National Strategy
7.5.2 Relationship Between CPEC’s Industry Spatial Layout and Pakistan’s National Strategy
7.6 Countermeasures and Suggestions for CPEC’s Industry Spatial Layout in the Future
7.6.1 Provide Incentives to the Projects Built in Western Pakistan
7.6.2 Vigorously Cultivate Competitive Signature Industry Clusters in Western Pakistan
7.6.3 Seek Common Development Through East-west Collaboration
Chapter 8: Changes on CPEC’s Logistics Channel: Case Study on the Site selection for Kashgar-Gwadar Railway
8.1 From East to West: Changes on the Site Selection for CPEC’s Logistics Channel
8.2 From “Operation” to “Development”: Changes in Site Selection Criteria for CPEC’s Logistics Infrastructure
8.2.1 Site Selection for Logistics Infrastructure and Spatial Concentration of Pakistan’s Economy According to the Project Operation Concept
8.2.2 Site Selection for Logistics Infrastructure and Pakistan’s Imbalanced Regional Development According to the Regional Development Concept
8.3 From “Structure” to “Volume”: The Network Development Concept for CPEC’s Logistics Channel
8.3.1 Logistics Infrastructure Is a Necessary Condition for Promoting Regional Development
8.3.2 The Neglected “Structure”: “Lines” vs. “Network”
8.3.3 Site Selection for the Kashgar-Gwadar Railway: Let “Structure” Drive Growth of “Volume”
8.4 From “Route” to “Network”: Suggestions
8.4.1 Improve Investment and Political Factors, and Promote the Construction of Logistics Infrastructure
8.4.2 Build a Western Logistics Channel Covering Multiple Modes of Transportation and Improve the Network Structure of Logistics Infrastructure
8.4.3 Cultivate the Industry Network Corresponding to the Logistics Network, and Coordinate the Development of Manufacturing and Logistics Industries
Chapter 9: Terrorism→Poverty→Road Building: Risk Analysis of the Underlying Logic of the CPEC Infrastructure
9.1 Topics in this Chapter
9.2 Does Poverty Lead to Terrorism?
9.3 Can Road Building Help to Eliminate Poverty?
9.4 Risks in CPEC’s Infrastructure Construction
9.5 Conclusion
Chapter 10: Social Infrastructure Development Aid for Xinjiang and Lessons for CPEC: A Case Study of Shanghai-Kashgar Paired Assistance Program
10.1 How Can Social Infrastructure Development Aid for Xinjiang Guide the Construction of CPEC?
10.2 Social and Economic Conditions in Kashgar
10.2.1 Introduction to Kashgar
10.2.2 Social and Economic Situation in Kashgar
10.3 General Situation and Hidden Worries of Paired Assistance for Kashgar from Provinces and Cities
10.3.1 Evolution of Aid-to-Xinjiang Policy Since the Founding of the People’s Republic of China
10.3.2 Paired Assistance for Kashgar During the Twelfth Five-year-Plan Period
10.3.3 Potential Problems and Manifestations
10.4 Content, Characteristics, and Effectiveness of Social Infrastructure Development Assistance for Xinjiang: A Case Study of Shanghai-Xinjiang Paired Assistance Program
10.4.1 Main Content of Social Infrastructure Development Assistance for Xinjiang
10.4.2 Prominent Features of Social Infrastructure Development Assistance for Xinjiang
10.4.3 Effectiveness of Social Infrastructure Development Assistance for Xinjiang
10.5 Lessons for the Construction of CPEC
10.5.1 Put People First and Pursue Modernization That Is Based on Joint Contribution, Shared Benefits, Fairness, and Justice
10.5.2 Meet the Needs of the People and Gain Support and Recognition Through the Development of Social Infrastructure and Undertakings
10.5.3 Promote “resident-city interaction” and Strengthen the Coordination Between the Construction of New Downtown and Talent Cultivation
10.5.4 Form Synergy Between Social Resources and Increasing the Involvement of Social Organizations in China and Pakistan
10.6 Conclusion