Pakistan’s largest donor has been the United States of America, granting around $ 70 bn in aid. In 2015, China, as part of its One Belt One Road global ambitions, promised Pakistan $ 46 bn (since revised to $ 60 bn), for a road running from its border to the port of Gwadar. The China Pakistan Economic Corridor (CPEC), is being seen as a ‘fate-changer’ for Pakistan. CPEC could change Pakistan’s fate in more ways than one; this article explores the domestic and regional consequences of China’s involvement in Pakistan, and what this will mean for South Asia and for India.

Regional strategic dynamics in South Asia is in a state of flux since the announcement of China’s Belt and Road Initiative (BRI). China emphasises on the economic aspect of investment in infrastructures and energy projects, but strategic underpinning are very much apparent. China loan has created indebtedness in these countries and has helped Beijing to gain strategic foothold in the region which India considers as core to its security. India’s aid programme though focuses on the neighbourhood, it remains small compared to China and suffers from delivery deficit.

There are several significant events which preceded China’s constitutional amendment of March 2018 that removed the presidential term limit boosting Xi Jinping’s standing as China’s prospective leader-for-life. Born to a revolutionary leader, Xi Zhongxun, Xi Jinping spent most of his life serving the government, gradually working his way up the hierarchy. His precedence in the Chinese Communist Party (CCP) and authority over all political institutions of the People’s Republic of China (PRC) have arguably placed him at par with Mao Zedong and Deng Xiaoping.

The Western Indian Ocean (WIO) is now attaining centrestage in the geopolitics of the Indian Ocean. Apart from France and the US, China holds significant interests in the WIO. China’s interests with the WIO states could be divided in four categories: dual-use infrastructure building, politico-diplomatic focus, connectivity-access and military activities. All four are interconnected and facilitate China’s desire to project power. For China, activities in the WIO serve the purpose of ensuring energy supplies, maintaining economic growth and securing military interests.