
Chinese possessions in the Indian Ocean consist primarily of commercial ports owned and operated by Chinese firms, as well as resupply stations operating in agreement with the Chinese central government. The two largest projects consist of a Chinese-financed commercial shipping center in Hambantota, Sri Lanka and a Chinese-controlled deep-water port near the mouth of the Persian Gulf in Gwadar, Pakistan. Both sites have raised the concern of neighboring powers, most significantly India, which fears the possibility of a string of Chinese bases situated just off its coast.
Chinese investment in Hambantota, and Sri Lanka’s dialogue partner status in the Shanghai Cooperation Organisation (SCO), is seen by some Indian analysts as reflective of a wider encirclement strategy on the part of the Chinese. (wikipedia)
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