The North-South International Transport Corridor\u2014a 7,200-kilometer trade route connecting St. Petersburg to Mumbai\u2014has emerged as a major geopolitical and economic initiative led by India, Iran, and Russia. Conceived in 2000 and approved in 2002, the corridor aims to facilitate trade between the Indian Ocean, the Persian Gulf, the Caspian Sea, and northern Europe, bypassing traditional routes such as the Suez Canal. The North-South Corridor could reduce transit times by up to 40 percent and freight costs by up to 30 percent, making it an attractive alternative for regional connectivity. However, geopolitical challenges, particularly Western sanctions on Iran and Russia, and complex regional interactions, have hindered the corridor\u2019s progress. While India presents the North-South Corridor as a response to China\u2019s Belt and Road Initiative, China\u2019s approach to the corridor has become a determining factor in shaping its future. This note examines China\u2019s approach to the North-South Corridor and how China is managing its development amid regional ambitions and global competition.<\/p>\n
China sees the North-South Corridor as a direct challenge to its Belt and Road Initiative, especially since it would strengthen India\u2019s influence in Central Asia and beyond\u2014a region in which China has invested heavily through the Belt and Road Initiative. The North-South Corridor\u2019s ability to connect India to resource-rich Central Asia and European markets without reliance on Pakistan, China\u2019s key ally\u2014is seen as a threat to China\u2019s regional dominance. Moreover, China\u2019s concerns have been heightened by India\u2019s alignment with the United States and other Western powers, which have made the North-South Corridor part of a broader effort to counter China\u2019s influence in the Indo-Pacific and Central Asia.<\/p>\n
The maritime section of the North-South Corridor through Iran\u2019s Chabahar port, which India is developing with a $500 million investment, is particularly contentious. Chabahar acts as a rival to Pakistan\u2019s Gwadar port, a cornerstone of the China-Pakistan Economic Corridor[2] and a key project of the Belt and Road Initiative. By providing India with a direct route to the markets of Afghanistan and Central Asia, Chabahar undermines Pakistan\u2019s strategic depth and reduces Afghanistan\u2019s economic dependence on Pakistan. The 2020 China-Iran partnership, which includes potential investments in Chabahar, reflects Beijing\u2019s efforts to maintain leverage over this key node of the North-South Corridor.<\/p>\n
China has actively engaged with the member states of the North-South Corridor to monitor and influence its development. In April 2022, then-Chinese Defense Minister Wei Fenghe[3] visited Kazakhstan, Turkmenistan, Iran, and Oman\u2014key nodes along the North-South Corridor route\u2014indicating Beijing\u2019s intention to deepen its strategic ties with these countries. During these visits, he emphasized expanding military exchanges and joint exercises, and indirectly referred to India\u2019s growing influence. For example, in Oman, a key node of the North-South Corridor with the Duqm Special Economic Zone[4], he avoided mentioning the United States by name and focused on strategic cooperation, which seemed to counter India\u2019s commercial and logistical interests in the region.<\/p>\n
These visits highlight China\u2019s strategy to position itself as a reliable defense and security partner for the North-South Corridor countries. By strengthening ties with Iran, Turkmenistan, and Kazakhstan, China can indirectly influence the volume and nature of Indian trade that passes through these countries. For example, Kazakhstan\u2019s role as a supplier of uranium and Turkmenistan\u2019s vast gas reserves are critical to India\u2019s energy security, and China\u2019s presence in these countries could limit India\u2019s access to these resources. Moreover, China\u2019s growing ties with the Taliban in Afghanistan pose a challenge to India\u2019s North-South Corridor plans after the US leaves in 2021. Especially since the Taliban has refused to participate in the Quartet, which includes India, Iran, and Uzbekistan, to expand the role of Chabahar.<\/p>\n
China\u2019s economic approach to the North-South Corridor involves both competition and potential cooperation. While the North-South Corridor is not comparable in scale to the Belt and Road Initiative, its strategic importance lies in its potential to diversify trade routes and reduce dependence on Chinese-dominated supply chains, especially in the post-pandemic era and amid tensions. China has responded by bolstering its own Belt and Road Initiative projects in Central Asia, such as the China-Pakistan Economic Corridor, and considering synergies with the North-South Corridor. For example, Iran has expressed its willingness to accept Chinese investment in Chabahar. This could integrate the port into the Belt and Road Initiative, thereby challenging India\u2019s monopoly. This move reflects China\u2019s pragmatic approach to cooperating with competing projects in order to maintain regional influence.<\/p>\n
Moreover, China\u2019s negotiations to link the Belt and Road Initiative to the Arctic Corridor, which could connect to the North-South Corridor via Finland, Estonia, and Latvia, indicate a long-term strategy to integrate regional infrastructure networks in line with China\u2019s interests. Some reports point to discussions about synchronizing the North-South Corridor with European rail networks such as Rail Baltica,[5] which could strengthen connectivity between Asia and Europe. China\u2019s interest in financing projects such as the Tallinn-Helsinki rail tunnel indicates an attempt to position itself as a key player in these networks, potentially overshadowing India\u2019s role.<\/p>\n
In recent years, the evolving geopolitical landscape, exemplified by the war in Ukraine and Western sanctions on Russia and Iran, has changed China\u2019s approach to the North-South Corridor. Russia sees the North-South Corridor as an economic escape route to circumvent sanctions. Freight trains from Russia to India that passed through Iran in 2022 can be seen as a piece of the puzzle. China\u2019s close ties with Russia and Iran, both under Western sanctions, align with its interest in supporting alternative trade routes that challenge Western dominance. However, China\u2019s growing ties with India\u2019s rivals, such as Pakistan and the Taliban, add to the complexity. Some analyses suggest that China\u2019s strengthening ties with Central Asia and its strategic partnership with Iran could disrupt the growth of the North-South Corridor by creating competing regional alignments.<\/p>\n
At the same time, China must balance its competition with India against the potential benefits of regional connectivity. The eastern branch of the North-South Corridor, operational since July 2022 through Kazakhstan, Turkmenistan, and Iran, demonstrates the corridor\u2019s potential to facilitate trade with India, which, if jointly managed, could complement the Belt and Road Initiative. However, China\u2019s reluctance to fully support the North-South Corridor appears to stem from its desire to maintain the primacy of the Belt and Road Initiative and prevent India from gaining a strategic foothold in Central Asia.<\/p>\n
The North-South Corridor presents both challenges and opportunities for China. The corridor\u2019s potential to move 14.6 to 24.7 million tons of cargo per year by 2030 threatens China\u2019s dominance of Eurasian trade routes. In addition, India\u2019s efforts to digitize trade connectivity and develop industrial parks along the North-South Corridor could strengthen its economic influence and challenge China\u2019s regional investments. The Taliban\u2019s alignment with China and refusal to participate in Chabahar-focused initiatives gives China a further strategic advantage.<\/p>\n
However, China also sees opportunities in developing the North-South Corridor. By investing in key nodes such as Chabahar or integrating the North-South Corridor with Belt and Road Initiative projects, China could reduce the competitive threat to the corridor. Synchronizing the North-South Corridor with European and Arctic corridors could create a transcontinental network in which China\u2019s financial and infrastructure expertise could play a pivotal role. Such cooperation would require careful management of China\u2019s competition with India. This could be achieved through multilateral frameworks such as the BRICS.<\/p>\n
India\u2019s proactive approach to the North-South Corridor, including a $500 million investment in Chabahar and the launch of TIR digital systems by 2022, demonstrates its commitment to the corridor. However, its delay in implementing it has become one of the recent challenges between Iran and India. India is also seeking to expand the membership of the North-South Corridor to include the Baltic and Nordic countries, with the aim of integrating the corridor with European rail networks such as Rail Baltica. This move challenges China\u2019s influence in Europe and Central Asia and has prompted Beijing to strengthen its presence in the North-South Corridor member countries.<\/p>\n
China\u2019s countermeasures include deepening ties with Iran and Central Asian countries \u2014 as seen in Wei Fenghe\u2019s 2022 visits \u2014 and exploring investments in Chabahar. In addition, China\u2019s engagement with the Taliban and efforts to expand the China-Pakistan Economic Corridor into Afghanistan are aimed at limiting India\u2019s access to Afghan markets. These actions reflect China\u2019s strategy to maintain its regional hegemony while selectively engaging with the North-South Corridor to prevent it from becoming a fully Indian-led initiative.<\/p>\n
China\u2019s approach to the North-South Corridor is a complex mix of competition, strategic engagement, and cautious cooperation. China seeks to counter India\u2019s influence by strengthening ties with key North-South Corridor member states such as Iran, Kazakhstan, Turkmenistan, and Oman, and by leveraging its engagement with Pakistan and the Taliban. But China recognizes the North-South Corridor\u2019s potential to play a complementary role to the Belt and Road Initiative. Geopolitical realignments resulting from the Ukraine war and Western sanctions on Russia and Iran have increased the importance of the North-South Corridor, forcing China to balance its competition with India with the benefits of regional connectivity. For the North-South Corridor to succeed without escalating tensions between China and India, both countries need to explore frameworks for cooperation, possibly through multilateral platforms such as BRICS, to ensure that the corridor serves as a vehicle for regional integration. As the North-South Corridor continues to evolve, China\u2019s strategic maneuvers will play a significant role in shaping its trajectory and the broader geopolitics of Eurasia.<\/p>\n
ClearIAS Team. (2024). International North-South Transport Corridor (INSTC). ClearIAS. https:\/\/www.clearias.com\/international-north-south-transport-corridor-instc\/<\/p>\n
Fillingham, Z. (2024). Geopolitics of the International North-South Transport Corridor (INSTC). Geopolitical Monitor. https:\/\/www.geopoliticalmonitor.com\/geopolitics-of-the-international-north-south-transport-corridor-instc\/<\/p>\n
Khorrami, N. (2022, June 22). Is China hitting back at India\u2019s INSTC plans? The Diplomat. https:\/\/thediplomat.com\/2022\/06\/is-china-hitting-back-at-indias-instc-plans\/<\/p>\n
Nilgon Group. (2025). What is the North-South Corridor? Nilgon Group. https:\/\/nilgongroup.com\/what-is-the-north-south-corridor\/<\/p>\n
Panda, J. (2023). Revitalizing INSTC: Analyzing geopolitical realignments and the China factor. Institute for Security and Development Policy. https:\/\/www.isdp.eu\/publication\/revitalizing-instc-analyzing-geopolitical-realignments-and-the-china-factor\/<\/p>\n
Sarma, C., & Menezes, D. R. (2018). The International North-South Transport Corridor (INSTC): India\u2019s grand plan for northern connectivity. Polar Connection. https:\/\/polarconnection.org\/india-instc-nordic-arctic\/<\/p>\n","protected":false},"excerpt":{"rendered":"
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