Subject
China's Indian Ocean strategy.
Significance
The Xi Jinping administration plans to integrate Eurasia and Africa more closely with China through investment and infrastructure, including pipelines, railways, roads and ports under the 'Silk Road Economic Belt' and 'New Maritime Silk Road' initiatives. The former is designed for Eurasia, the latter for the Indian Ocean. This is of growing concern to India, which sees the Indian Ocean as its sphere of influence.
Impacts
Indian Ocean stakeholders including the United States, India and Australia will cooperate to balance Chinese activities.
China's ties with Persian Gulf countries will strengthen as China overtakes the United States as the largest crude oil importer.
China's South China Sea and Indian Ocean strategies are interlinked on economic and security goals.