India has cited sovereignty issues and raised objections over CPEC project, which is part of the larger One Belt One Road (OBOR) initiative.
China's foreign ministry on Thursday refused to endorse or deny a statement made by its Ambassador to India Luo Zhaohui.
According to media reports, Luo had recently said that Beijing was prepared to rename the China-Pakistan Economic Corridor (CPEC) to address India's concerns.
During a speech in Delhi last week, the ambassador said that China "can change the name of CPEC" and "create an alternative corridor through Jammu & Kashmir, Nathu La pass or Nepal to deal with India's concerns".
India has cited sovereignty issues and raised objections over the CPEC project, which is part of the larger One Belt One Road (OBOR) initiative. India had not attended the Belt and Road Forum in May, which was attended by representatives of 130 countries.
The OBOR initiative
Introduced by China's President Xi Jinping, the One Belt One Road (OBOR) initiative is a development strategy involving around 60 countries.
The initiative aims at creating connectivity and cooperation between Eurasian countries and China.
The project comprises of a land component called the Silk Road Economic Belt (SREB) and a maritime component called the Maritime Silk Road (MSR).
The SREB comprises of rail and road corridors such as the New Eurasian Land Bridge between China and Europe via Kazakhstan. The CPEC is one such corridor.
The MSR project involves a trade route encompassing the South China Sea, Strait of Malacca, Indian Ocean, Gulf of Bengal, Arabian Sea, Persian Gulf and the Red Sea. The route overlaps the historic Arabian naval network for maritime trade in Southeast Asian.
Why is India opposing the OBOR?
CPEC is the main reason for India opposing the OBOR initiative.
China is investing in the CPEC project, which runs from the geo-strategic Gwadar port in south-western Pakistan to Kashgar, in China's Xinjiang province in the north. The corridor runs through Pakistan occupied Kashmir (PoK).
External Affairs Ministry spokesman Gopal Baglay had reiterated earlier this week, "We are all for promoting connectivity… but on the OBOR, our position is that since the so-called CPEC forms a part of OBOR, and it passes through Indian territory, that is where our difficulty lies".
While signing the agreement, China had committed an investment of around USD 46 billion in Pakistan.
Experts suggest that the CPEC is critical for China. The project would help China reduce its dependence on the Strait of Malacca, through which a large percentage of its maritime traffic passes.
The strait has historically been prone to piracy and is susceptible to blockades in an event of regional conflicts. The corridor would also help cut time for shipments from west Asia and Europe to reach China.
Media reports suggest that the total investment under CPEC is now close to USD 62 billion, which is equal to all foreign investment made in Pakistan since 1970.
