US brings China trade war to Pakistan
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Staff Report
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November 22, 2019
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–Alice Wells says Pakistan faces long-term economic damage if China keeps pursuing its giant infrastructure push
–Says China relies primarily on Chinese workers and supplies even amid rising unemployment in Pakistan
–Chinese envoy Yao says CPEC projects ‘clean and transparent’, warns US against ‘propaganda’
WASHINGTON/ISLAMABAD: The United States has warned Pakistan that it faced long-term economic damage with little return if China keeps pursuing its giant infrastructure push, prompting the Chinese envoy to Islamabad to warn Washington over causing aspersions over something “they don’t have accurate information on”.
The top US diplomat for South Asia, Alice Wells, said on Thursday that the China-Pakistan Economic Corridor (CPEC) — heralded as a game-changer by both Asian countries — would profit only Beijing, adding that the United States offered a better model.
“It’s clear, or it needs to be clear, that CPEC is not about aid,” said Alice Wells, the acting assistant secretary of state for South Asia.
She noted that the multibillion-dollar initiative was driven by non-concessionary loans, with Chinese companies sending their own labour and material.
“CPEC relies primarily on Chinese workers and supplies, even amid rising unemployment in Pakistan,” Wells said at the Woodrow Wilson International Center for Scholars.
The corridor “is going to take a growing toll on the Pakistan economy, especially when the bulk of payments start to come due in the next four to six years,” she said.
“Even if loan payments are deferred, they are going to continue to hang over Pakistan’s economic development potential, hamstringing Prime Minister (Imran) Khan’s reform agenda,” she said.
The United States has gone on the offensive against China’s Belt and Road Initiative, a signature project of President Xi Jinping which aims to build ports, highways and railways around the world.
But Wells’ speech was unusually specific in warning of risks to Pakistan, a historic ally of the United States which has had a turbulent relationship with Washington in recent years over Islamabad’s alleged ties with Afghan Taliban.
While acknowledging that the United States could not come to Pakistan with offers from state-run companies, Wells said private US investment, coupled with US grants, would improve the troubled economy’s fundamentals.
“There is a different model,” she said. “Worldwide we see that US companies bring more than just capital; they bring values, processes and expertise that build the capacities of local economies.”
She pointed to interest in Pakistan by US companies including Uber, Exxon Mobil, PepsiCo and Coca-Cola, with the soft-drink makers together investing $1.3 billion in the country.
CPEC PROJECTS ‘CLEAN AND TRANSPARENT:
Responding to Alice Wells’ remarks, Chinese Ambassador to Pakistan Yao Jing on Friday said that China-Pakistan Economic Corridor (CPEC) had brought phenomenal economic success to Pakistan and produced tangible economic benefits for the people.
Addressing the inaugural ceremony of the fifth CPEC Media Forum hosted jointly by the Chinese embassy, Pakistan-China Institute and China Economic Net, the ambassador said CPEC is fulfilling the country’s energy needs, providing 30 percent of total electricity generation and providing energy security for economic development in the country.
“If the US is really concerned about the lack of electricity in Pakistan, why didn’t American companies come to build power stations before 2014,” Ambassador Yao said.
The Chinese ambassador said he was ‘shocked and surprised’ at Wells’ remarks over CPEC which he said ‘fully exposed’ her ignorance of Pakistan-China relations.
He said that both Pakistan and China agreed that all projects related to CPEC are “clean and transparent”.
“We welcome American investments in Pakistan and we don’t have a problem with it. But the US should not cause aspersions over something they don’t have accurate information on,” said Ambassador Jing.
He said 75,000 Pakistanis are directly employed in CPEC projects while there are 200,000 indirect beneficiaries and that over 100 Pakistani companies are involved in CPEC projects, which will generate 2.3 million jobs till 2030 and will contribute 2-2.5pc to Pakistan’s GDP.
Alice Wells' remarks about CPEC 'repetition of old slander': Chinese foreign ministry
Dawn.comNovember 26, 2019
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"I'm afraid certain individuals in the US are not bad at math, but rather misguided by evil calculations," Chinese Foreign Ministry's spokesperson Geng Shuang says. — Chinese foreign ministry website/File
Chinese Foreign Ministry's spokesperson Geng Shuang termed United States Assistant Secretary Alice Wells' recent comments on the China-Pakistan Economic Corridor (CPEC) programme as "mere repetition of old slanders against China, the CPEC and the BRI".
During a
press briefing on Monday, Geng pointed out that Wells' claims had swiftly been refuted by the Chinese ambassador to Pakistan as well as top government officials in Islamabad, including the foreign minister.
He was responding to a question regarding
remarks made by Wells last week in which she warned that CPEC will add to Pakistan's debt woes. In a speech, described as “unusually specific” by the international media, the top US diplomat had said that CPEC was not an aid to Pakistan but a form of financing that guarantees profits for Chinese state-owned enterprises, with little benefits for Islamabad. Wells also emphasised the need for Pakistan to know that China was providing loans, not grants, as the US.
In his press briefing on Monday, Geng slammed Wells' statements and said: "China and Pakistan have clarified and refuted such smears time and again. However, some in the US still use the same old script. They don't stop though the show has become a complete disaster, and they don't get off the stage even when booed by the audience."
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He went on to say that China puts "Pakistani people's interests first" and insisted that CPEC's projects had led to creation of employment for the locals and improvement in transportation and power infrastructure. He claimed that CPEC projects had also "contributed one to two per cent" to Pakistan's economic growth.
"The US side, in total disregard of facts, has been talking all about the fabricated 'debt issue' with the true aim to disrupt CPEC development and sow discord in China-Pakistan relations with malicious calculations," Geng regretted. He rejected the claims that China was creating a debt trap for Pakistan, saying that more than 80 per cent of the CPEC projects were being funded by direct investment or grants from China.
"According to statistics released by the Pakistani side, debt incurred from the CPEC stands at 4.9 billion US dollars, less than one-tenth of Pakistan's total debt.
"I'm afraid certain individuals in the US are not bad at math, but rather misguided by evil calculations," he said.
Soon after Wells' comments last week, Foreign Minister Shah Mahmood Qureshi
declared that Pakistan had " rejected that view". He added: "We do not think that the burden of CPEC will increase our debt burden."
Planning Minister Asad Umar also dismissed Wells' claims and said that Pakistan's mounting debt crisis had "nothing to do with China".
On Monday, US Ambassador to Pakistan Paul W. Jones
clarified that Wells' remarks were "meant to generate a debate". He said that Pakistan had the sovereign right to make its decisions.
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