Workflow
How China is Beating India in Its Own Backyard
Bloomberg Originals·2025-06-23 08:00

Geopolitical Landscape in the Indian Ocean - The Indian Ocean is vital for global commerce, serving as a critical passage for trade between Europe, the Middle East, Africa, and Asia [1] - Increased competition exists between the US and China, and between China and India, for influence in the region [3] - President Trump's foreign policy shift has created uncertainty about the US's role, opening doors for China [3] - Tiny countries like Mauritius are being courted by major powers due to their strategic location [4] China's Growing Influence - China is investing billions in ports, infrastructure, and naval expansion in the Indian Ocean region, raising concerns in India [2] - As part of its Belt and Road Initiative, China is asserting regional influence with multibillion-dollar infrastructure investments [14] - China has built its first military base in Djibouti and is expanding its naval footprint in Cambodia [16] India's Response and Concerns - India relies on the Indian Ocean for approximately 95% of its international trade and 80% of its energy [11] - India is constructing a new airstrip on the Agaléga islands to track Chinese activity [7] - India has commissioned a new base on Minicoy Island and opened its first offshore military logistics hub at Duqm Port in Oman [20] - India views the potential for an external power, particularly China, to disrupt trade routes as a significant threat to its national security [17] US Role and Retreat - US cuts to foreign assistance are seen as an opportunity for China to fill the gaps [18] - The US base on Diego Garcia is crucial for countering China's growing presence in the region [19]