Thirty-six-year-old Chinese engineer Pingzhi Liu went missing almost a month ago. It took Pakistani authorities three weeks to classify Mr. Liu’s disappearance as a likely kidnapping that could have significant political and economic consequences.
Identifying the mysterious disappearance as a kidnapping is not only embarrassing because Mr. Liu was one of thousands of Chinese nationals working in Pakistan that are guarded by a specially created 15,000-man Pakistani military unit.
It is also awkward because it coincides with apparent Chinese questioning of aspects of the $56-billion China Pakistan Economic Corridor (CPEC), a crown jewel of China’s Belt and Road initiative, and increasingly strained relations between Pakistan and the United States.
Mr. Liu was accorded military protection even though his project, the Karot Hydropower Plant, located near the Pakistani capital of Islamabad, is not part of CPEC. Karot was the first project financed by China’s state-owned $40 billion Silk Road Fund, established in 2014 by President Xi Jinping to foster increased investment in Eurasia.
Mr. Liu went missing on December 20 while on night duty. He was last seen walking out of a tunnel at around 3.30am while talking on his phone. No claim for his potential kidnapping or ransom has been made.
The fact that Mr. Liu was working on a project in Punjab rather than Balochistan, a troubled region with a history of attacks on Chinese personnel, has set alarm bells off.
China last month warned its nationals in Pakistan, a country plagued by religious and ethnic militancy, of plans for a series of imminent terrorist attacks on Chinese targets
“It is understood that terrorists plan in the near term to launch a series of attacks against Chinese organisations and personnel in Pakistan,” the Chinese embassy in Pakistan said in a statement on its website.
The embassy warned all “Chinese-invested organisations and Chinese citizens to increase security awareness, strengthen internal precautions, reduce trips outside as much as possible, and avoid crowded public spaces”.
Police have twice detained for interrogation Chinese and Pakistani workers associated with the Karot project. They are also introducing security and vetting measures for Pakistani nationals working with Chinese personnel.
If proven to be a kidnapping, Mr. Liu’s disappearance could not have come at a more awkward moment. China has signalled that it is consideringfreezing further CPEC-related investment until the country’s domestic situation stabilizes. China is believed to have so far invested $29 billion of the $56 billion committed.
“Political events in Pakistan have sent China in a watchful mood… I am concerned if we continue to throw surprises to the outside world, then anyone can be forced to rethink their economic investments,” Pakistan’s chief CPEC negotiator, Ahsan Iqbal, told Pakistani daily The News.
China had earlier decided to redevelop criteria for the funding of CPEC-related infrastructure projects in an apparent effort to enhance the Pakistani military’s stake in the country’s economy at a time that the armed forces are flexing their political muscle.
The Chinese decision that reportedly led to the suspension of funding for three major road projects valued at a total of $850 million – the upgrading of the Dera Ismail Khan-Zhob motorway and the Karakorum highway as well as construction of a 110-kilometre road linking Khuzdar and Basima – suggested that Beijing was not averse to exploiting its massive investment in the Belt and Road to shape the political environment in key countries in its authoritarian mould.
The possible investment freeze threw into doubt China’s reliability as Pakistan’s all-weather friend at the very moment that the Trump administration announced that it was cutting almost all security aid to Pakistan, believed to total more than $1 billion, until it deals with militant networks operating on its soil.
More at: https://www.zerohedge.com/news/2018-...l-significance
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