It is a known fact that in the last few years, China has made major inroads in the South Asian region, especially through infrastructure and connectivity projects. This has intensified under the Belt and Road Initiative (BRI), which was started in 2013. The grand projects have helped China gain major strategic footholds in the region. Here are some key ports and airports in India’s neighbourhood that provide China with a strong vantage position in the region—both through land and ocean—and challenge New Delhi’s security position.
Two Dead Projects In Sri Lanka
The Sri Lankan government had looked to Beijing for a loan to build its ambitious Hambantota port. China spent around $1.3 billion in total towards this. The China Export Import Bank extended the first half of the loan ($306 million) at the rate of 6.3%, while the second half ($757 million) was at 2%. The construction of the port began in 2007, and the first phase was completed in 2010. However, in 2012, only about 34 ships docked at Hambantota. As the port was not financially viable and the Sri Lankan government continued to falter on debt repayment in 2017, the port, along with about 15,000 acres of land near it, was leased out to China. Such a development aggravates New Delhi’s security concerns in the Indian Ocean region, a strategically and geopolitically critical area. It also complements China’s ambitions in the region.
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Separately, the Mattala Rajapaksa International Airport in Hambantota, opened in 2013, was also built with a Chinese loan of $206 million. However, after being termed one of the emptiest airports in the world, it has proved to be a major challenge for the Sri Lankan government. A number of airlines, even after signing agreements, have stopped operating flights here. As a result, in 2024, the day-to-day operations of the airport were awarded to a joint venture between Indian and Russian firms.
The Gwadar Developments In Pakistan
The all-weather friendship between Pakistan and China has been a major security concern for New Delhi since the 1960s. China has played an important role in helping Islamabad financially and militarily, as well as in the form of technology transfer. In recent years, China, under the aegis of the China Pakistan Economic Corridor (CPEC), has invested in building a deep-sea port at Gwadar, which was completed in 2007. However, at its peak, the port saw only 22 ships. Pakistan owes Beijing about $10 billion in debt for it now. No surprises then that in 2017, Islamabad leased Gwadar to Beijing for 40 years. The China Overseas Port Holding Company (COPHC) is to take care of development and day-to-day operations there. This could be strategically very challenging for India as it allows China to use the port for monitoring Indian movements in the region.
Notably though, the most recent non-viable infrastructure constructed by China in South Asia is Pakistan’s Gwadar Airport. Opened in October last year, Beijing has invested around $240 million in the project. The airport can handle about 4 lakh passengers and was inaugurated virtually given the security concerns. What complicates the matter here is that Balochistan has been increasingly facing rising violent attacks, most of them targeted towards Chinese investments and nationals. Due to these security challenges, the airport has witnessed no flights and has catered to no passengers even after months of being operational. Only, it adds to the debt woes of Islamabad while providing Beijing with another crucial asset.
Maldives’ Chinese Tilt
The Chinese investments in Maldives have been gaining momentum since the Muizzu government has taken office. Since Mohammed Muizzu’s explosive ‘India Out’ campaign, the Maldives has seen a clear tilt towards Beijing. However, one cannot ignore the fact that in 2016, the island nation had leased out Feydhoo Finolhu to China for a period of 50 years for $4 million. China is Maldives’ single largest lender, and it owes Beijing around $1.3 billion.
China has undertaken a number of infrastructure investments in the Maldives and both countries have even adopted a defence cooperation deal, the latest flagship project being the China-Maldives friendship bridge, towards which Beijing has invested around $200 million. No surprises that Xiang Yang Hong 3, the Chinese spy vessel, docked for ‘refuelling’ in Male in February last year.
Elsewhere In Bangladesh And Myanmar
China has invested heavily in port projects in Bangladesh too—according to reports, a whopping $7 billion. But notably here, though Beijing did invest in the development of Chittagong and Payra ports, India enjoys access to them. In 2016, Chinese companies had even agreed to extend around $600 million for the development of the main infrastructure of the Pyara port.
However, the recent political changes in Bangladesh and the ouster of the Sheikh Hasina government have put a question mark on India-Bangladesh relations. The existing interim government has shown its keenness to be closer to Beijing. It wasn’t too shocking when after years, a Chinese naval ship docked in Bangladesh’s Chittagong port in October last year. In addition, Beijing has also announced that it is keen to extend a loan of $335 million for the completion of the Mongla Port, a project that was supposed to be undertaken by New Delhi. The Chinese access to these ports will create a challenge for India’s security.
Apart from these, China was also looking to be involved in the development of Myanmar’s Kyaukphyu Deep-Sea Port and the Special Economic Zone under the BRI. However, the ongoing turmoil in Myanmar has derailed this project. But in an effort to restart the project, executives from Chinese state-owned firm CITIC Ltd recently met with junta officials.
Nepal Is In A Pickle, Too
The Pokhara airport in Nepal was built with Chinese loans amounting to $215 million. The airport is closely linked to Nepalese aspirations to develop tourism around Pokhara. There have been reports about its allegedly substandard construction which have also led to challenges with functioning.
Nepal has been hoping to convert these loans to aid, but to no avail. In addition, reports suggest that the loan is being serviced at a rate of 5% and not 2%, as was publicly claimed by China. Also, given that the airport is close to the Indian border, New Delhi has been reluctant to grant rights to use its airspace, adding to Nepal’s operational difficulties. The airport was started on January 1 in 2023, and has not witnessed more than a few flights, making it financially unviable. This, in turn, has only increased Nepal’s dependence on China: tourism entrepreneurs of Pokhara and Chengdu city of Sichuan Province met recently on March 20 to conclude an agreement for more collaboration.
Exploiting Aspirations?
What emerges is a clear pattern—of how these smaller nations have had to rely on China to fulfil their aspirations for economic and infrastructural growth and prosperity, only to end up in a strategically vulnerable position. Most of the airports mentioned above were built with a vision to enhance tourism in their respective countries, and, thus, boost the domestic economies. But given their current state, it won’t be wrong to argue that China might have exploited these nations with the help of its own deep pockets, under the garb of the “win-win” BRI.
The high rate of interest that China charges makes it impossible for many of these countries to repay their debts in time, thus getting trapped in a debt cycle, which ultimately endangers their sovereignty. China, in turn, has only benefited from this strategically: most of these projects were destined for doom, and thus provided China with an opportunity to gain an edge in the region. True, as of now, Beijing doesn’t have any direct military or strategic presence at most of these sites. But its naval ships have made regular forays into the Indian Ocean region, with these visits having only grown in number in the last few years. India will have to be careful, and on alert.
(The author is a Professor at OP Jindal Global University)
Disclaimer: These are the personal opinions of the author