Pakistan-China relationship, CPEC: China expresses opposition to US 'interference'

The Chinese Embassy in Islamabad on Wednesday dismissed the 'negative propaganda' of the Untied States about China-Pakistan Economic Corridor (CPEC) and posed questions to the top US diplomat Alice Wells if she has brought any 'aid, investment or trade for Pakistan' during her visit.

The embassy also clarified about the Chinese loans for CPEC project, saying that the loans for the project are about US $ 5.8 billion, accounting for 5.3 percent of Pakistan's total foreign debt, with a repayment period of 20-25 years and an interest rate of approximately 2 percent.

The statement of the Chinese Embassy comes in response to comments attributed to Alice Wells, Acting Assistant Secretary of State for South and Central Asian Affairs, who visited Pakistan from January 19-22 and made comments on the alleged lack of transparency in the CPEC projects and the growing Pakistan's debt burden due to the Chinese financing. She also allegedly touched upon the cost escalation in railways ML-1 upgrade project, and said the Chinese companies joining CPEC are on World Bank's blacklist.

"We noted that during her recent visit to Pakistan, Alice Wells, Acting Assistant Secretary for South and Central Asian Affairs of the US State Department, made negative comments on the China-Pakistan Economic Corridor again," said a spokesperson for the Chinese Embassy.

He stated: "The comments hold nothing new, but the same cliché in her speech in November 2019, which has been repeatedly rejected by China and Pakistan." However the US side still ignores the facts and is obsessed with the story it made for the CPEC, he added.

"We would be more than glad to see the US develop its relationship with Pakistan, but we strongly oppose the US interference into China-Pakistan relations and the CPEC. Although you can never wake up a person who is pretending to be asleep, we have to make our position clear and reject the negative propaganda by the US. We must not let the truth be distorted and the lies run wild," the spokesperson added.

"We also want to advise the US when you accuse China-Pakistan relations, you should first look back what have you done to Pakistan, and think about how much contribution have you made for Pakistan. Did Wales bring any aid, investment or trade for Pakistan during her visit? If the US truly cares about the development and prosperity of Pakistan and this region, it should bring cash and funds, promote win-win cooperation on the basis of mutual respect, fairness, and justice, rather than acting as a world policeman, spreading rumors and provoking China-Pakistan relations," the spokesperson added.

"China-Pakistan ties are rock-solid and unbreakable. China will continue to work with the Pakistani government and people to steadily advance the BRI and CPEC to promote regional peace and development," he added.

In the CPEC projects, he insisted that China and Pakistan have been firmly committed to the principles of mutual consultation and cooperation for shared benefits. "We put Pakistani people's interests first," he said, adding that major progress has been achieved in the past five years, with 32 projects achieving early harvests.

"This has significantly improved local transportation infrastructure and power supply, created over 75,000 jobs directly and contributed one to two percent of the GDP growth in Pakistan. It shows that the CPEC is playing an important role in boosting Pakistan's socioeconomic development and improving people's livelihood. Whether the CPEC works, the answer should be given by the Pakistani people rather than the US," the spokesperson added.

Under the CPEC, during its planning or implementation, he said that every project is equally discussed, carefully studied and jointly implemented by both China and Pakistan.

He said that the Chinese government always requests the Chinese companies to operate according to local laws and regulations. "All Chinese companies joining the CPEC enjoy international reputation. All projects strictly follow the market-oriented and internationally accepted business model, adopt state-of-the-art technology and strict environmental protection standards," he maintained.

The spokesperson further stated that the entire process is open and transparent and is in line with international norm. "We keep in touch with the relative accountability agencies of Pakistan and it is agreed that the CPEC is clean. The US holds a stick of sanction all over the world to blacklist this and that country, but it is not for global economy, just ways to serve its own political purpose," he insisted.

Regarding the so-called debt issue, the spokesperson added that according to statistics from the State Bank of Pakistan, the total foreign debt of Pakistan is US $110 billion. In fact, international financial institutions including the Paris Club and IMF are the largest creditors of Pakistan, he said.

"Loan for the CPEC is about US $5.8 billion, accounting for 5.3 percent of Pakistan's total foreign debt, with a repayment period of 20-25 years and an interest rate of approximately 2 percent," he said, adding that its repayments will start in 2021, with annual repayments of about US $300 million.

"It will never be a burden to Pakistan. Moreover, China has never forced other countries to pay debts, and will not make unreasonable demands on Pakistan. The US keeps fabricating the so-called debt story, their mathematics is bad, and their intention is worse," he further stated.

As to the cost of the ML-1 project, he added that it has been clarified many times and the initial design of the project was jointly accomplished by the China Railway No 2 Bureau, National Engineering Services Pakistan Limited (NESPAK), and Pakistan Railway Advisory & Consultancy Services Ltd (PRACS).

He said that the project was launched in 2016, and the initial design was submitted in May 2017. In April 2019, it has successfully passed the initial design review, organized by Pakistan Railways (PR), of the complex including Mott McDonald Pakistan (MMP), Canarail and the Crimson, he said. As the project has not yet been approved, he added, the amounts of the project will be adjusted according to the actual condition and the needs of Pakistan. "After finalizing the design of the project, we would initiate bidding in accordance with international practice," he said, adding that this is a completely normal business practice.