STRING OF PEARLS

• Over the last few years, China has begun its rapid economic
development and has surpassed Japan as the Asia economic
centre in 2010. After opening its market in the 1970s, China's
economy continued to show sustained growth.
• As a large country with many natural resources and
workforce, make China among the countries that have great
potential to grow in line with Western countries.
• Though it has its own resources but China still depends on
imports for oil through the Straits of Malacca at 85per cent
and 80 per cent includes the total imports in a scale
• Energy sources that have high demand in China are petroleum and
gas. In 2009, Chinaneeds a total of 8.3 million barrel per day of
energy sources.
• But China only managed to meet the needs in the country by
producing 4.0 million barrel per day only. Because of many
requirements, China has imported a total of 4.5 million barrel per
day external energy source
• The shifting economic centre in Asia from Japan to China has made
China as an important hub of Commerce and communication in
world .
• This has encouraged foreign investors to get into the country.
Investment in China is more convenient since the country began to
adopt a policy of open doors and allow investors to open factories
and operations.
• China's sustainable economic growth over the past 30 years
have led China to a level which is very commendable where it
has managed to become a world power that has economic
and military .
IMPORTANCE OF STRAIT OF MALACCA
• Importation in large-scale is made to meet the needs of the
country. China's energy needs are obtained from various countries
in Africa, the Middle East and Southeast Asia
• Among oil exporters to China are Angola, Sudan, Congo, Gabon,
Venezuela, Arab Saudi, Iran, Yemen, Oman, Indonesia, Brunei and
Malaysia.
• This source of energy demand had resulted in China depending on
the passage in the Straits of Malacca.
• This dependency is
• called “Malacca dilemma” by one of the former President of China,
Hu Jintuo . The dependence on the Straits of Malacca can actually
cause any unsafe condition to China if something happened in the
Strait in the future, such as maritime security threats or blockade
from any party.
• Maritime security factor especially during through the Straits
of Malacca is given attention by China.Maritime threats, such
as robbery and piracy are a problem that can cause the lack of
supply of energy sources where it also could cripple the
economy of China.
• Because of this, China has taken steps to improve security
along the international maritime route, especially in the
Straits of Malacca.
• In addition to reducing the dependence on countries in Africa,
the Middle East and Southeast Asia, China had been working
with some of its neighbours to build a pipeline to channel
resources to the home.
• China had been working with Kazakhstan to build a pipeline
along the 30,088 km from Atyrau to Dushangzhi and from
Atasu to Alashankou (Lai 2007). Similar cooperation has also
been initiated with Kyrgyzstan since 2004. In addition to the
two countries, China import oil from Myanmar.
• Construction of the pipeline is important as an alternative
route for energy resources to China if something happened in
the Straits of Malacca.
 String of pearls
• For the first time in 2004, India called China’s strategy as a
String of Pearls.
• This strategy is a mechanism to building network of economic
and military from the Indian Ocean to the South China Sea. It
started by increasing access to the airports and ports
• This strategy also involves used of maritime assets in the
strategic location like Maldives, Bangladesh, Sri Lanka and
Pakistan.
• China stated that this strategy is not to compete with anybody
but more to secure its national interest.
 CPEC
• $40 Billion
• Gwador to kashgar
• Alternative route to malacca strait
• Stratergic location: near strait of Hormuz
 Srilanka
• Heavy economic
investment
• Colombo port
• Hanbantota port (70-
80% stake for 99 yrs
lease)
• Stratergic presence in
theIindian ocean
region
 Maldives

International airport
• Male
• Earlier GMR
• Now Chinese firms
Developing other islands
• Connectivity projects with male
 Bangladesh

• Chittagong port
• $24 billion trade
• Infrastructural projects
 Myanmar

• Kyaukpyu islands
• Handed over to china
• Commercial
development
• Make the part of
global supply chains
• Trade chains
 Nepal
• Road and rail connecting kathmandu to lhasa
• Airport at pokhra
• India at 3 choke points
• Strait of malacca
• Gulf of aden
• Gulf of oman
 Indias counter stratergy
• Increased naval strength in strait of Malacca
• Convinced Singapore to give Indian Navy
access to Changai naval base
• Improve relations with ASEAN country (Modi’s
look east policy
• Improve relations with Srilanka,Bangladesh
and Maldives
• Chabhar port in Iran.
 Measures at strait of malacca
• Commissioned its fifth L55 landing craft ship
at port blair
• P-8i submarine killer aircraft deployed
• Signed maritime pact with Japan
• The navy has INS Baaz,a naval airbase at
campbell(in Andaman and Nicobar islands)
established in 2012.
• Deployed Brahmos.
 India Srilanka
• India offered loan at 1% against chinaat 6.5%
• Srilanka has offered india to operate airport
just near Hanbantota port ,where china has its
presence
 India oman
• India has got access to stratergic Duqm port of
oman for military and logistics services
• India can now keep its eyes on chinese
activities on gwadar port of pakistan
• India and seychelles together are working on a
naval base project to develop assumption
island.
 Sabang seaport Indonesia
• Indonesia has offered India to use the sabang
port for military purpose to balance the
chinese dominance in the region. Its location
is very unique and by its access India can block
strait of Malacca through which all the oil of
china goes.
 INDIA MYNMMAR

• INDIA gave 5 million loan to Mynmmar for

road development.
• Trilateral India –Myanmar-Thailand Highway
• India is also working in Mynmmar to develop
tha kaladan multi Modal Transit Transport
Project that connects east Indian city of
kolkata to the port in sittwe.
 India Vietnam
• India investing in oil exploration
• Giving training to vietnam military.
• Providing patrol ship.
• Vietnam has also provided basing rights to
Indian navy on its port Nha Trang
• *Brhamos
• India convinced russia to provide six
Varshavyanka- class submarines to vietnam.
 Malabar Practice
• India is also involving Australia,US,Japan in the
Indian ocean region.
 Other measures
• India has an airforce base (Farkhor airbase) in
Tajikistan which could prove of utmost
importance in case of war with pakistan or
china
 What more to be done?
• Strenghthen navy
• 3 aircraft carrier
• And more submarines
• Invest in other nations
THANKYOU