China’s Unauthorized Mineral Exploration in Gilgit-Baltistan: A Challenge to Indian Sovereignty

Dr. Devender Kumar

China recently signed an agreement with ‘Geological Survey of Pakistan’ over the “exploration of Lithium and other valuable minerals in the Gilgit Baltistan region” an Indian territory currently occupied by Pakistan. Such projects by China challenge Indian sovereignty. China has refused to export 7 critical minerals to US, but at the same time exploring new geographies for exploitation.

China banned the export of “dysprosium, terbium, tungsten, indium, yttrium and magnets” essential for electric cars, robotics, missiles, drones, fighter jets, and solar panels, etc, to the US in its tit-for-tat tariff trade war. Beijing produces nearly 90 percent of the global rare earth minerals, and restrictions by China would impact users around the world. Moreover, President Trump is in no mood to provide concession to China on the tariff policy and exports to the US.

The lithium and mineral exploration project in Gilgit-Baltistan in the Pakistan-occupied Jammu & Kashmir and Ladakh (PoJKL) violates Indian sovereignty and the Panchsheel agreement between the two as it stipulates for “respect to each other’s territorial integrity and sovereignty”. Pakistan illegally ceded areas of Indian territory of Jammu and Kashmir (largely known as Aksai Chin) to China in 1963. The parliament of India has unanimously passed a resolution on 22 February 1994 stating that the “entire territory of Union Territories of Jammu & Kashmir and Ladakh have been, are and shall be an integral part of India” that includes Gilgit-Baltistan as well.

China has vehemently conducted activities in the Indian territories in collaboration with Pakistan, and is developing a $60 billion China-Pakistan Economic Corridor (CPEC) that crosses through Gilgit-Baltistan under PoJKL, which will connect the two countries.

Pakistan has provided a “de facto province-like status” to Gilgit-Baltistan without constitutional amalgamation for self-rule in 2009, which allowed a legislative assembly in the territory. But in May 2020 status of the territory was changed from “autonomous region” to “provincial province”, which brought it under the direct control of Islamabad.

Pakistan is strengthening China in the Gilgit Baltistan and has signed a “Memorandum of Understanding (MoU) with “Gansu province” under China for transmitting “high-mountain agriculture technology and machinery” for joint research and development in sectors such as agriculture and fisheries.

Mineral exploration projects jointly undertaken by China and Pakistan pose a challenge to India's sovereignty and territorial integrity. India has compelling grounds to respond and express its firm opposition to these developments, based on the following five key considerations.

First, Pakistan is inviting foreign countries to join these projects. The Pakistani president recently invited “Saudi Arabia, US, China, and EU to invest” in this sector and “install factories to export finished products”. It is also requesting international financial support by highlighting the sectors worth is nearly $6 trillion. Such initiatives are likely to bring external parties into the bilateral issues between India and Pakistan.

Second, China uses Gilgit-Baltistan as a “starting point” and “gateway” for its China-Pakistan Economic Corridor (CPEC). It is also the core area for its Belt and Road Initiative (BRI). The area provides another route for CPEC’s import and export in the rising US influence at the major choke points such as the South China Sea and the Malacca Strait.

Third, China has funded dam projects such as the Diamer-Bhasha dam in Gilgit-Baltistan in the PoJKL under the CPEC. The development projects, such as energy, infrastructure, and roads, in Gilgit-Baltistan by China are illegal as the territory is part of Indian territory. India has strongly objected to these projects and “conveyed protests” and “shared concerns with both Pakistan and China on all such projects in the Indian territories under Pakistan’s illegal occupation”. Hence, the development of such projects in this region may further strain relations between India and China.

Fourth, Pakistan is using the geopolitical position of the region for geo-economic and geo-strategic reasons. It is the only area that connects South Asia with Central Asia. It also shares borders with Afghanistan and China, and sits at the crossroads of South Asia, Central Asia, and connects East Asia via China. The American withdrawal from Afghanistan and Chinese control over the Gilgit-Baltistan bring China into the game by providing an opportunity to figure Afghanistan in its BRI project to connect with Central Asia.

Fifth, the exploration in the region would embed military connotations for India as the minerals’ exploration would increase China’s strategic presence and military foothold in the Gilgit-Baltistan under the PoJKL. This may ignite security tension between China and India.

Beijing’s mineral exploration in Gilgit-Baltistan is likely to intensify territorial disputes, escalate security challenges, and increase China’s influence in the region.

These advances present substantial risks to India, predominantly by undermining India's territorial claims. Such initiatives would further strengthen China’s presence in South Asian geopolitics.

Dr. Devender Kumar is Assistant Professor at the Center of Excellence for Geopolitics and International Studies (CEGIS), REVA University.