BEIJING: China proposed a $58 billion railway system that would connect Pakistan to Western China. It is a move to reduce Western trade dependence.
The rail system is set to be 1,860 miles long and will connect Pakistan’s port of Gwadar to the Chinese city of Kashgar in the Xinjiang Uygur autonomous region.
The proposal’s review board has noted that this rail system has the potential to reshape not only trade but also geopolitics. It is expected that this new rail system will encourage additional train systems that could connect China to Turkey and Iran, opening up direct access to these regions.
The latest rail system to receive the green light in China will connect the world’s top manufacturer with the Arabian Sea, thereby providing more direct trade routes.
The proposed railway system is part of China’s Belt and Road Initiative (BRI), which aims to connect Asia, Europe, the Middle East, and Africa through a network of infrastructure projects, including railways, highways, and ports.
The BRI has been a significant foreign policy initiative of Chinese President Xi Jinping, who has repeatedly emphasized its importance for regional connectivity and economic development.
The proposed rail system is expected to have a transformative impact on the region’s economy by improving transportation and facilitating trade between China and Pakistan.
The rail system will reduce the time it takes to transport goods between the two countries and will provide a more cost-effective alternative to shipping.
Additionally, the new rail system will open up new economic opportunities for the regions through which it passes, creating jobs and stimulating economic growth.
“The government and financial institutions should provide strong support, increase coordination and collaboration among relevant domestic departments, strive for the injection of support funds and provide strong policy support and guarantees for the construction of this project,” the Chinese team of analysts reportedly stated in a report published in the Chinese journal, Railway Transport and Economy.
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