The Kashmir valley is in Pakistan, for now. China and Pak have been rebuilding a road through there.
Search “CPEC kashmir”.
It is more for other Middle East trade than Iran though.
Connecting China to a Chinese deepwater port in Pak.
The Kashmir valley is under Indian control. I don’t fault the Chinese for wanting a route to the oil supply that is both more direct and overland. The Chinese suggested rail links into Indian Kashmir, but neither side wanted it. The Balochs (nominally part of Pakistan) are not fired up about it either.
[snip] Consisting of a number of road, rail and pipeline ventures, the CPEC connects Xinjiang in Northwestern region of China with Pakistan’s Gwadar port on the Arabian sea, going over the Pakistan occupied Kashmir territory of Gilgit-Baltistan and the disputed region of Balochistan. [/snip]