Affiliation:
1. Institute of Business Management, Pakistan
2. School of Economics and Management, Xian, China
Abstract
China is the world's second-largest economy after the United States with more than 60% of the value of its trade being transported by sea. Therefore, China looks for short, safe, and inexpensive trade routes (both land and maritime) to reach Europe, Africa, and the Middle East countries. In doing so, China has taken the One Belt-One-Road (OBOR) initiative intending to develop a cost-effective transportation network ensuring timely and secure delivery. The objective of the OBOR strategy is to enhance Pakistan's infrastructure through the construction of the China-Pakistan Economic Corridor (CPEC). Therefore, this chapter aims to examine the implications of CPEC trade routes in terms of cost and delivery between China and other regions (i.e., Saudi Arabia, Iraq, Angola, Oman, Kuwait, and the United Arab Emirates) via Gwadar Port, Pakistan. The results demonstrate a significant reduction in cost and delivery time via the CPEC route in comparison with traditional trade routes.