Opinion | How Pakistan can balance US and Chinese investment
The recent agreement between Pakistan and the US on rare earths need not be seen as antithetical to the China-Pakistan Economic Corridor
Rare earth minerals, unlike what the name suggests, are not rare. A thin deposit of these resources is found all over the Earth; they range from scandium and yttrium to 15 silvery-white metals called lanthanides. These elements are crucial for producing electric vehicles, semiconductors and military weapons.
Pakistan is rich in mineral resource potential with an outcrop area of around 600,000 sq km. The country is also situated at the crossroads of South, East and West Asia, making it a strategic partner for trade and connectivity. Hence, despite security concerns and economic issues, Pakistan has attracted investment from both China and the US.
CPEC is a multibillion-dollar investment project. Out of the projected amount of US$62 billion, nearly US$25 billion has already been invested in infrastructure, energy hubs and exclusive economic zones in Pakistan.
The project has managed to survive internal and external challenges so far, serving as the cornerstone of an enduring friendship between Pakistan and China. Thus, it is also unlikely to be affected by any convergence between Washington and Islamabad.
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