Beyond Borders: Revisiting the Indo-Pak Conflict Through the prism of the China-Pakistan Economic Corridor Dilemma

Abstract

Foreign Direct Investment is a crucial instrument within the realm of geoeconomic strategy. The consistent and substantial financial inflows made by China towards the China-Pakistan Economic Corridor (CPEC) have emerged as a significant concern for India as it reexamines its strategic position in the region. India perceives this investment as unfavorable and a threat to its national interests. A potentially stable and economically prosperous Pakistan could effectively enhance its ability to advocate for the Kashmir cause within the power corridor. China's dream to revitalize its ancient silk route still exists as Pakistan and China are connected by a paved highway in the Uygur Autonomous Region of Xinjiang. China's investment flows have been identified as a possible trigger for conflict within the Indo-Pak dyad and the broader India-Pakistan-China triangle. The effects of this conflict can potentially jeopardize the region's stability and peace, consequently enhancing and multiplying existing global challenges. This study examines the impact of the Pakistan-India standoff on regional dynamics by explaining the potential conflict arising from using FDI as a tool for geoeconomic strategy.